Bitcoin mining, AI data centres: Pakistan govt allocates 2,000MW of electricity

ISLAMABAD: The federal government has announced the allocation of 2,000 megawatts of electricity in the first phase of a national initiative to power Bitcoin mining and Artificial Intelligence (AI) data centres.

This ambitious initiative is spearheaded by the Pakistan Crypto Council (PCC) a government-backed body under the Ministry of Finance as part of a broader strategy to monetize surplus electricity, create high-tech jobs, attract billions of dollars in foreign direct investment, and generate billions of dollars for government, Finance Division said on Sunday.

The Finance Division quoted Finance Minister Muhammad Aurangzeb as saying that 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.

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Pakistan is uniquely positioned “both geographically and economically “to become a global hub for data centres. As a digital bridge between Asia, Europe, and the Middle East, Pakistan offers the most strategic location in the world for data flow and digital infrastructure. Since the inception of the Pakistan Crypto Council, there has been tremendous interest from global Bitcoin miners and data infrastructure companies.

Several international firms have already visited the country for exploratory discussions, and following this landmark announcement, more global players are expected to visit in the coming weeks, the Finance Division said in a statement.

Pakistan’s underutilised power generation capacity is now being repurposed into a high-value digital asset. 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, especially from plants operating below capacity, allows Pakistan to convert a long-standing financial liability into a sustainable, revenue-generating opportunity, the statement added.

Bilal Bin Saqib, CEO of the Pakistan Crypto Council, emphasised the transformative nature of this initiative. He explained that with proper regulation, transparency, and international collaboration, Pakistan can become a global crypto and AI powerhouse. He added that this energy-backed digital transformation not only unlocks high-value investment but enables the government to generate foreign exchange in dollar through Bitcoin mining.

By offering stable and affordable energy, Pakistan presents a highly competitive environment compared to regional counterparts like India and Singapore, where rising power costs and land scarcity limit scalability, the official statement said. Pakistan’ss strategic advantage is further underscored by the global context: while AI data centre demand has soared to over 100 GW, global supply remains around 15 GW. This massive shortfall creates an unprecedented opportunity for countries like Pakistan with surplus power, land, and an emerging regulatory framework, the statement said.

The country’ss digital connectivity has also been significantly strengthened by the landing of the world’s largest submarine internet cable. The Africa-2 Cable Project, a 45,000-kilometre global network connecting 33 countries through 46 landing stations, has now landed in Pakistan, said the statement.

With a population of over 250 million and more than 40 million crypto users, Pakistan holds immense potential as a regional leader in digital services. Establishing local AI data centres will not only address growing concerns around data sovereignty but will also enhance cybersecurity, improve digital service delivery, and empower national capabilities in AI and cloud infrastructure, said the statement.

Copyright Business Recorder, 2025