The Pax Silica artificial intelligence (AI) industrial hub is expected to have a data center capacity of at least 400 megawatts (MW), more than double the country’s current capacity, once it becomes fully operational, according to the Department of Information and Communications Technology (DICT).

DICT Secretary Henry Aguda said data center infrastructure in the proposed industrial hub in New Clark City is projected to reach 300 to 400 MW in terms of capacity, or the amount of computing power a data center can support.

This already represents 20 percent of the government’s target of establishing up to 1.5 gigawatts (GW) of data center capacity by 2033 under the Philippines AI+ Infrastructure Masterplan (PAIMM).

“Currently, the Philippines doesn’t even have 200 MW,” Aguda said in a media roundtable on Wednesday, July 29.

Still, he said there is optimism that the AI industrial hub could further expand its data center capacity given recent developments restricting the expansion of these facilities.

Earlier this month, New York became the first state in the United States (US) to impose a temporary moratorium on new data centers due to concerns over their impact on power bills and water resources. Other US states and countries are also considering similar restrictions.

“Now, what they’re going to do is they’re going to push their capacity requirement to other countries, and the Philippines is available,” said Aguda.

Aguda said the Philippines, particularly the AI industrial hub, is poised to attract these data centers given its robust connection to international fiber-optic cables and its strategic position linking the US and the Pacific with the rest of Asia.

He noted that any potential energy or water shortage would be a “happy problem” for the Philippines, as it would mean data centers are already “overbuilt.”

“Our problem then would be that we have too much infrastructure. As opposed to in the past, when we didn’t have any,” he said.

Citing a DICT study, Aguda said the Philippines currently ranks eighth in AI infrastructure among members of the Association of Southeast Asian Nations (ASEAN), despite ranking first in AI policy and regulations alongside Singapore.

For the Pax Silica AI industrial hub, he emphasized that the government is already working to develop the necessary power and water infrastructure to ensure redundancy for data centers while maintaining supply for surrounding communities.

Located in New Clark City in Tarlac province, the AI industrial hub will span 1,619 hectares (ha) and is expected to become a major investment hub not only for data centers but also for advanced manufacturing and the processing of critical minerals.

The project is part of the Philippines’ commitment under the US-led Pax Silica initiative, which was established to bring allied countries together to secure the global AI supply chain and counter China’s dominance in the sector.

Asked about the DICT’s role in the project, Aguda said the agency will primarily oversee the technical requirements needed to attract high-value investments.

The DICT is hoping to bring Amazon Web Services Inc. (AWS), the cloud computing arm of Amazon founded by Jeff Bezos, on board as one of the potential locators in the AI industrial hub.

AWS is planning to invest around $5 billion to build digital infrastructure in the Philippines over the next 15 years, with the industrial hub in New Clark City being considered as a potential site.

Through technology-driven investments in the project, Aguda said the government is projecting the creation of between 180,000 and 500,000 digital jobs.