By Staff Reporter
ISLAMABAD: Pakistan has allocated 2,000 megawatts of electricity to power Bitcoin mining and artificial intelligence data centers, marking a significant step in its bid to position itself as a global digital hub.
The move, announced as the first phase of a national initiative, aims to transform the country into a leader in the fast-evolving digital economy by leveraging its surplus power capacity.
The government has legalised cryptocurrency to attract international investment and launched the Pakistan Crypto Council (PCC) in March to “regulate and integrate blockchain technology and digital assets” into the nation’s financial system.
Entrepreneur Bilal Bin Saqib has been appointed as the chief adviser to the finance minister on the council, which operates as a government-backed body under the Ministry of Finance.
A Finance Division statement said the initiative is a part of a broader strategy to “monetise surplus electricity, create high-tech jobs, attract billions of dollars in foreign direct investment, and generate billions of dollars for the government”.
Pakistan is uniquely positioned, both geographically and economically, to become a global hub for data centers, and offers the most strategic location in the world for data flow and digital infrastructure as a bridge between Asia, Europe, and the Middle East.
The country’s combination of surplus power, geographic advantage, advanced subsea cable connectivity, renewable energy potential, and a large, digitally engaged population creates a compelling case for becoming a regional epicenter of Web3, AI, and digital innovation.
“This strategic allocation marks a pivotal moment in Pakistan’s digital transformation journey, unlocking economic potential by turning excess energy into innovation, investment, and international revenue,” Finance Minister Muhammad Aurangzeb was quoted as saying by his ministry.
Since the PCC’s inception, global Bitcoin miners and data infrastructure companies have shown significant interest. Several international firms have already visited Pakistan for exploratory discussions, with more expected in the coming weeks following this landmark announcement. The initiative taps into Pakistan’s underutilized power generation capacity, redirecting idle energy—particularly from plants operating below capacity—to support the energy-intensive demands of AI data centers and Bitcoin mining.
“Pakistan’s underutilised power generation capacity is now being repurposed into a high-value digital asset,” the Finance Division statement said. “AI data centres and Bitcoin mining operations, known for their consistent and heavy energy usage, provide an ideal use case for this surplus. Redirecting idle energy… allows Pakistan to convert a long-standing financial liability into a sustainable, revenue-generating opportunity.”
PCC CEO Bilal Bin Saqib underscored the transformative potential of the initiative. “With proper regulation, transparency, and international collaboration, Pakistan can become a global crypto and AI powerhouse,” he said. Saqib highlighted that the energy-backed strategy not only unlocks high-value investment but also enables the government to generate foreign exchange in US dollars through Bitcoin mining. As regulations evolve, Pakistan could accumulate Bitcoin directly into a national wallet—a shift from selling power in Pakistani rupees to leveraging digital assets for economic stability, he added.
Pakistan’s stable and affordable energy supply gives it a competitive edge over regional peers like India and Singapore, where rising power costs and land scarcity constrain scalability. The global context further amplifies this advantage. While demand for AI data centers has surged to over 100 gigawatts, supply remains at about 15 gigawatts, creating a massive shortfall that Pakistan is well-positioned to address with its surplus power, available land, and emerging regulatory framework.
The country’s digital infrastructure received a major boost with the landing of the Africa-2 Cable Project, a 45,000-kilometer submarine internet cable connecting 33 countries through 46 landing stations. This enhances Pakistan’s bandwidth, latency, and resilience—critical factors for ensuring the high availability and operational continuity required by AI data centers.
With over 40 million crypto users, Pakistan holds immense potential as a regional leader in digital services. Establishing local AI data centers will address data sovereignty concerns, enhance cybersecurity, improve digital service delivery, and strengthen national capabilities in AI and cloud infrastructure. The initiative is also expected to create thousands of direct and indirect jobs, fostering a skilled workforce in engineering, IT, and data sciences.
This allocation marks the first phase of a broader digital infrastructure rollout. Future plans include renewable energy-powered facilities—tapping into Pakistan’s vast wind potential (50,000 MW in the Gharo-Keti Bandar corridor), solar, and hydropower resources—alongside strategic partnerships with leading blockchain and AI companies and the creation of fintech and innovation hubs. To lure investors, the government is proposing tax holidays, customs duty exemptions on equipment, and reduced taxes for AI infrastructure developers.
“Pakistan’s combination of surplus power, geographic advantage, advanced subsea cable connectivity, renewable energy potential, and a large, digitally engaged population creates a compelling case for becoming a regional epicentre of Web3, AI, and digital innovation,” the Finance Division statement said. “With the right incentives, strategic investments, and collaborative partnerships, Pakistan is positioning itself not only as a destination for global digital infrastructure but also as a sovereign economy that can accumulate digital assets, export digital services, and lead in the next generation of technological transformation.”
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