In a historic step aimed at transforming its digital landscape, Pakistan has announced the allocation of 2,000 megawatts (MW) of surplus electricity to support artificial intelligence (AI) data centres and Bitcoin mining operations.
Backed by the Ministry of Finance, the Ministry of Information Technology and Telecommunication, and the Pakistan Crypto Council (PCC), the initiative is being hailed as a turning point in the country’s bid to become a regional hub for emerging technologies.
At its core, the plan seeks to convert underutilised energy into a robust digital infrastructure that could unlock billions of dollars in economic potential, while creating high-skilled jobs and attracting foreign investment.
Pakistan’s installed power generation capacity stands at approximately 45,000 megawatts, but actual demand fluctuates well below this figure leaving substantial energy unused during off-peak periods. The government’s plan to channel this surplus into 24/7, high-performance computing tasks marks a strategic shift in how power is monetised.
“We are turning excess electricity from a financial burden into a long-term asset,” said a Ministry of Finance spokesperson. “This allocation is just the beginning of Pakistan’s digital transformation.”
AI model training and blockchain validation are known to consume significant power, making this surplus ideal for data-intensive tasks. Pakistan is now looking to become a competitive destination for global tech companies seeking stable energy and scalable infrastructure.
Institutional backing across the board
The initiative enjoys broad support from Pakistan’s civilian and military leadership. Chief of Army Staff General Asim Munir met with the Pakistan Crypto Council CEO Bilal Bin Saqib to explore the strategic role of AI, blockchain, and decentralised technologies in national development.
The Ministry of IT and Telecommunication called the 2,000 MW allocation a “milestone” for Pakistan’s tech ambitions, asserting that it could significantly boost digital exports and innovation capacity.
“This is about preparing our youth and economy for the technologies of tomorrow,” said Bilal Bin Saqib in a statement. “AI and crypto are not threats — they are opportunities to leap ahead.”
A trillion-dollar opportunity
According to PwC, artificial intelligence could add $15.7 trillion to the global economy by 2030. Pakistan, if it captures just 0.5% of that market, could generate over $75 billion annually. Analysts expect high-growth sectors to include:
- Financial services and banking automation
- Agriculture optimisation and food security
- AI-powered diagnostics and digital healthcare
- Cybersecurity and public sector automation
- Blockchain-based digital trade and payments
Pakistan already ranks among the top 10 countries for cryptocurrency adoption, with over 15 million users. The formalisation of this ecosystem — combined with AI and cloud services — could increase national GDP (Gross Domestic Product), expand export earnings, and deepen tech sovereignty.
Learning from global peers
Pakistan’s approach mirrors successful models abroad. The United Arab Emirates (UAE) has deployed dedicated zones powered by solar energy for AI and blockchain infrastructure. Kazakhstan used its energy surplus to attract Bitcoin miners and generate tax revenue, while El Salvador leveraged geothermal energy to mine Bitcoin and boost state coffers.
Unlike these nations, Pakistan is developing a dual-track strategy — supporting both AI and crypto industries under a regulated, government-supervised framework. The Pakistan Digital Assets Authority will oversee licensing, compliance, and innovation sandboxes to ensure global standards and investor confidence.
Implementation and next steps
The 2,000MW allocation marks only the first phase of a larger national rollout. Pilot zones are being identified near idle or underused power stations, with infrastructure development expected to begin by the end of 2025.
Proposed timeline
| Phase | Estimated Period | Key Deliverables |
|---|---|---|
| Policy Finalisation | Q3–Q4 2025 | Regulations, licensing, investment frameworks |
| Infrastructure Pilots | Q1–Q2 2026 | 100–200 MW deployment in special zones |
| Full Rollout | 2026–2028 | 2,000 MW operational across strategic sites |
To support this scale, the country is also upgrading fibre connectivity, exploring green energy integration, and seeking partnerships with international hardware and cloud providers.
Challenges and outlook
While the vision is ambitious, challenges remain. Ensuring power allocation does not affect consumer supply, maintaining grid stability, and safeguarding environmental standards will be essential. Additionally, global crypto volatility and international scrutiny (e.g. from the IMF) must be carefully navigated.
Yet the momentum is undeniable. With institutional commitment, public-private collaboration, and an emerging regulatory framework, Pakistan is entering a new era one where electrons are converted into economic power.
“This initiative has the potential to place Pakistan on the global digital map,” said an international investor briefed on the policy. “It’s a rare case where energy policy, tech infrastructure, and youth employment are aligned.”
As the country prepares to deploy its digital backbone, the allocation may be remembered not just as a utility decision but as the spark that ignited Pakistan’s AI economy.
The article does not necessarily reflect the opinion of Business Recorder or its owners.
The writer is a member at the Forbes Technology Council. She is the CEO Datavault.