Pangilinan Eyes Tarlac Tech Hub With Power, Data Centers and Connectivity

Positioning for a Long-Term Build

Manuel Pangilinan is arranging a meeting with the Bases Conversion and Development Authority to explore how his infrastructure conglomerate can support the development of a technology and advanced manufacturing hub in Tarlac. The veteran Filipino businessman controls critical infrastructure assets through Meralco in power distribution, PLDT in telecommunications, and VITRO in data centers, three components that would underpin any serious technology cluster.

Pangilinan confirmed to reporters on August 13 that his group is seeking a briefing from the authority, which is leading the government's Pax Silica initiative. President Ferdinand Marcos Jr. spotlighted the project in his recent State of the Nation Address, describing it as an advanced manufacturing and artificial intelligence ecosystem to be built in New Clark City.

The chairman framed the question simply: what does it take to recreate Silicon Valley in Central Luzon? He emphasized that whatever form the ecosystem takes, it will require a long-term horizon. Some of the foundational requirements, however, are already visible.

Power, Water and Network Constraints

Electricity sits at the top of the list. Pangilinan noted that data centers demand not only uninterrupted supply but competitive tariffs capable of meeting international client expectations. For a large-scale technology buildout in Tarlac, additional generation capacity would eventually be necessary.

The infrastructure chief suggested that a new power plant may need to be constructed in the province, a scenario that would naturally involve Meralco and the broader Pangilinan group. He had already signaled interest in late July, calling the Silicon Valley concept promising but cautioning that the country must first assemble the engineers, capital, infrastructure and higher-value industries required for a genuine technology cluster to function.

Water presents another constraint, particularly for large data centers that rely on cooling systems. Pangilinan contrasted the situation in Tarlac with Metro Manila, where two major concessionaires already deliver relatively reliable supply. He acknowledged that he does not yet have clarity on water infrastructure in the province.

Connectivity forms the third pillar. PLDT Enterprise head Patricio Pineda explained that prospective locators involved in advanced manufacturing will require private mobile networks, 5G infrastructure and Internet-of-Things connectivity not only within factory walls but across entire supply chains. That includes the ports and logistics networks that will service those operations.

Data Centers Beyond the Capital

Pangilinan's remarks extended beyond Pax Silica itself. He was also addressing Tarlac's broader potential as a technology hub, including the possibility of siting future data centers in the province. He confirmed that data centers will likely form part of the overall development strategy for Tarlac.

That possibility is already under active consideration within the PLDT group. Victor Genuino, president of VITRO, disclosed that Tarlac is among several locations being evaluated for the company's next facility. Other sites under review include General Trias in Cavite and areas closer to Metro Manila. No final decision has been made.

Tarlac could be particularly well-suited for data centers dedicated to AI training. Genuino explained that facilities handling gaming, financial transactions and other consumer-facing services must remain relatively close to end users to minimize latency. AI training workloads, by contrast, are less sensitive to distance, allowing for greater geographic flexibility.

The search for additional sites comes as PLDT sees stronger momentum in its data center business. Pangilinan noted that both local and foreign locators are beginning to establish presence, raising awareness of the Philippines as a regional data center hub.

Market Share and Regulatory Tailwinds

PLDT reported that its data center segment grew 13 percent year-on-year in the first half of 2026, driven by colocation demand from hyperscalers, enterprises and the public sector. The company holds a 33 percent market share in the Philippines by live colocation IT capacity, making it the largest operator in the country.

VITRO's flagship project in Sta. Rosa is designed for 36 megawatts of IT capacity. Ten megawatts have already been built out, with roughly half of that initial capacity committed to customers, according to Genuino. Across its nine data centers, PLDT's currently available IT-ready capacity stands at close to 34 megawatts.

The company also anticipates a demand boost from Executive Order No. 119, which establishes a data residency framework requiring certain government data to remain within Philippine territory. Genuino described the policy as important for the growth of the data center business, citing additional promise from incoming hyperscalers and continued enterprise digitalization.

Building the Ecosystem

The Pangilinan group's interest in Tarlac reflects a broader recognition that the Philippines will need coordinated infrastructure investment to compete for advanced manufacturing and technology investment in Southeast Asia. The region has seen intensifying competition for semiconductor, electronics and data center projects as companies diversify supply chains away from concentrated manufacturing bases.

Whether Tarlac can develop into a genuine technology cluster will depend on more than infrastructure alone. Access to skilled labor, competitive incentives, regulatory clarity and the ability to integrate into regional supply chains will all play a role. But without reliable power, connectivity and digital infrastructure, the conversation does not begin. Pangilinan's group is positioning itself to provide those building blocks, assuming the government can articulate a coherent long-term plan.