Digital infrastructure landscape: Major telecom providers expand footprint

LAHORE: Pakistan’s cloud computing and data center industry is witnessing rapid evolution as major telecom providers expand their footprint in the digital infrastructure landscape.

The country is poised to become a regional hub, with its data centre capabilities offering high-speed connectivity and colocation services to neighbouring Central Asian nations. This move can catalyze digital transformation and foster economic integration in the broader region.

During a recent media briefing, Muneeb Khawaja, Business Unit Head Data Centres at DWP Group Pakistan, a leading digital solutions firm, highlighted the immense potential of Pakistan’s data center ecosystem. However, he also pointed out several critical challenges that could hinder its full-scale growth.

“A major roadblock is the government’s direct involvement in competing with private players,” Khawaja noted. “This not only discourages private investment but also disrupts market competitiveness.”

He recommended that future data centres be established in Pakistan’s northern regions—particularly in areas like Gilgit-Baltistan—where naturally cooler climates can significantly reduce cooling costs, a major expense for such facilities. “In fact, engine oil is often used in the cooling process, but leveraging the region’s climate can lead to sustainable and cost-effective operations,” he said.

Nonetheless, Khawaja emphasized the need to evaluate other risks when selecting northern locations, such as flood zones, earthquake activity, historical site stability, internet connectivity, energy availability, and skilled labour.

Recognizing the importance of manpower development, Khawaja outlined ongoing efforts to train a new generation of data center professionals. “We collaborate with academic institutions to build future talent. One example is our support for Knowledge Stream, an initiative offering youth training in data center operations,” he shared.

The briefing also highlighted successful public-private collaborations, such as two recently established data centres in partnership with the Higher Education Commission (HEC)—one at NED University in Karachi and the other in Lahore. These facilities not only support HEC’s data storage requirements but also serve as platforms for research and innovation.

“These data centres are scalable and built to meet academic and research needs for years to come,” Khawaja stated.

Khawaja underscored the critical importance of sustainable energy solutions for the future of data centres. “Many existing centres still rely on conventional power and outdated cooling systems,” he said. “Our new facilities prioritize energy efficiency and integrate renewable sources like solar power.”

He noted that Pakistan possesses an estimated renewable energy potential of over 60,000 megawatts, especially in provinces like Sindh and Balochistan. “Utilizing on-site solar panels and entering long-term power purchase agreements with wind farms can significantly cut costs and reduce carbon emissions.”

While early initiatives and international partnerships present a positive trajectory, Khawaja called for a unified national strategy. “We need dedicated policy support, infrastructure upgrades, and a push for green data centres to fully realize Pakistan’s potential in the digital economy.”

With the right mix of regulatory support, investment, and skilled human resources, Pakistan is well-positioned to emerge as a regional leader in cloud and data center services—fuelling innovation, economic growth, and cross-border digital collaboration.

Copyright Business Recorder, 2025