Oton weighs persona non grata tag for data center proponent

By Rjay Zuriaga Castor

ILOILO CITY – The local government of Oton, Iloilo said it would carefully weigh calls to declare Norwegian national Daniel Stefan Robertsen persona non grata, acknowledging that such a move could affect the town’s image as an investment destination.

Robertsen is the proponent of a planned 50-megawatt artificial intelligence (AI) data center on 10 hectares in Brgy. Abilay Sur, Oton, which he formally withdrew on Aug. 16, two days after walking out of a public consultation on the project.

Olivares said the local government would first determine whether Robertsen’s actions warrant a declaration of persona non grata, stressing that the measure should not be taken lightly.

“We will gauge if the acts necessitate the declaration of such persona non grata because that is heavy. We will see if he is qualified because with that declaration in case, we would be burning bridges,” he told Daily Guardian on Monday, Aug. 17.

He said the local government must also consider the possible implications of such a move on Oton’s image as an investment destination.

“It can create a negative image for Oton in the investment sector. We will weigh it accordingly if he is qualified,” he explained.

A persona non grata declaration by a local legislative body carries no power to bar a foreign national from entering or remaining in the Philippines, a matter that falls under the Bureau of Immigration. Such resolutions are censures rather than sanctions, though they can complicate a proponent’s dealings with the local government that issues them.

Confirming the withdrawal, Olivares cited Robertsen’s letter to the municipality.

“Following our assessment of the project and the current circumstances, we have decided not to proceed with further development of the project in Oton,” Robertsen’s Aug. 16 letter read.

Olivares said the local government was still collating information and preparing a committee report for presentation during the Sangguniang Bayan plenary session Thursday.

With the withdrawal of the proposal, Olivares said it would no longer be necessary for Robertsen to appear before the local council.

The vice mayor declined to say whether the withdrawal should be considered a loss or a gain for the municipality.

“We cannot conclude because our fact-finding is not yet finished, and we have not yet completed the committee hearing. We are still collating the data and looking into all the issues surrounding the proposal so that we can weigh the pros and cons. But since [the process] was not fully satisfied, we cannot conclude,” he said.

The local council conducted two committee hearings on Robertsen’s proposal, on April 27 and July 27.

Olivares said Robertsen proposed to establish the data center in Oton because of the town’s strategic location, particularly its proximity to Iloilo City and access to major road networks.

He added that the Oton proposal was Norway Green Energy’s first attempt to introduce a data center project in Southeast Asia.

During the two committee hearings, Olivares said the local government advised Robertsen about the stringent regulatory requirements and documents he needed to comply with for a project of such scale.

“In the local council, we have the legislative process […] There is a referral to the committee. There is proper consultation; that is why we conducted a public hearing as part of our consultation process,” he said.

“For a project that would create a possible impact on the environment, we ensure that there is a committee hearing,” he added.

Olivares said he had expected Robertsen to bring a team to the public consultation and described the proponent’s decision to walk out as unfortunate, as residents had prepared questions about the project.

“The purpose of our committee hearing was not achieved,” he stressed.

Olivares described Robertsen’s walkout as an “isolated” incident and stressed that the local government had followed the proper legal and legislative processes in dealing with his proposed project.

The vice mayor also declined to say whether the walkout could leave a negative impression on Oton’s standing as an investment destination.

However, he said the circumstances surrounding the public consultation demonstrated the local government’s commitment to transparency and to ensuring that various sectors are involved in major development proposals.

“We are ready to cater to investors. We welcome investments. In fact, we have in place our investment incentive code; new businesses can avail the privileges laid down in this code. We are business friendly because we have to accept that the spillover of development from the city goes to Oton,” Olivares said.

The proposed project comes as the Philippine government continues to promote data centers and other digital infrastructure as strategic investments, with the Board of Investments identifying data center infrastructure as part of the country’s investment priorities and noting the sector’s importance to the country’s digital transformation.

For projects with potential environmental impacts, proponents may also be required to secure an Environmental Compliance Certificate or other appropriate environmental clearance under the Philippine Environmental Impact Statement System, established under Presidential Decree 1586, depending on the project’s classification.