AI Dissent Spooks US Investors in Philippine Hub, Official Says

Some US investors have raised questions about the prospects of a planned AI hub in the Philippines amid brewing opposition to the Washington-backed project, according to an official from the Southeast Asian nation.

Philippine Trade Undersecretary Ceferino Rodolfo said he received queries from American officials and businesses if the 4,000-acre manufacturing site will push through, after seeing street protests and negative sentiment online about the so-called Pax Silica Initiative.

“The investors are kind of — maybe too strong a word — but they are being spooked by what is happening,” Rodolfo said Monday at a forum organized by the Philippine foreign correspondents’ association.

“When they see rallies or intense discussions on social media, they ask questions on what’s happening, and whether the project will push through,” he said.

Read More: Philippines Sees US-Backed AI Hub Drawing at Least $10 Billion

The tech hub, envisioned as the Philippines’ Silicon Valley that will help form a tech supply chain among Washington’s allies, have sparked pockets of protests. This resistance mirrors a global backlash against AI infrastructure, as communities increasingly raise concerns over their impact on displacement, and the exploitation of water and power supplies.

The Philippines is working to allay fears among investors and local communities, according to Rodolfo. He also said that the US-backed AI hub will not host data centers, and won’t grant diplomatic immunity to American companies.

“We tell them that it’s part of the process here in the Philippines that every one can speak their minds, and they understand that,” Rodolfo said. “For investors, we really need to do a lot of confidence-building and explanations.”