Pakistan Allocates 2000 MW to Power Bitcoin Mining and AI Data Centers in Digital Transformation Drive

KARACHI, May 25, 2025 – In a groundbreaking step toward establishing itself as a global digital powerhouse, the Government of Pakistan has allocated 2,000 megawatts (MW) of electricity in the first phase of a national initiative to support Bitcoin mining and Artificial Intelligence (AI) data centers, the Finance Ministry announced on Sunday.

Table of Contents

The initiative, led by the Pakistan Crypto Council (PCC) — a government-backed body under the Ministry of Finance — is part of a broader national strategy to monetize surplus electricity, attract foreign direct investment, and create high-tech employment opportunities. This effort positions Pakistan to become a key player in the digital economy by leveraging its abundant energy resources and strategic geographic location.

Turning Energy Surplus into Digital Gold

Pakistan Allocates 2000 MW :Pakistan currently possesses underutilized electricity generation capacity. By redirecting this surplus to energy-intensive sectors like AI computation and Bitcoin mining, the country aims to convert a long-standing financial burden into a sustainable, revenue-generating digital asset.

“These data centers represent the ideal use case for our surplus energy,” the Finance Ministry said. “Rather than allowing excess electricity to go to waste, we’re transforming it into innovation, investment, and global revenue streams.”

Finance Minister Muhammad Aurangzeb called the move a “pivotal moment in Pakistan’s digital journey,” underscoring its potential to catalyze economic transformation and drive digital innovation across borders.

Why Pakistan?

Pakistan offers a unique combination of strategic advantages:

Surplus electricity and untapped renewable energy potential
Geographic proximity to Asia, the Middle East, and Europe
Advanced subsea fiber connectivity via the Africa-2 submarine cable
A tech-savvy population of over 250 million, with 40+ million crypto users

This mix creates an ideal environment for Web3 development, AI infrastructure, and international data flows, offering a competitive edge over regional rivals such as India and Singapore — where energy costs are rising and land for data centers is scarce.

Global Interest Already Growing

Since the launch of the PCC in March 2025, Pakistan has seen significant international interest from Bitcoin mining firms and AI infrastructure companies. According to the ministry, multiple global players have already visited the country for exploratory talks, with more expected in the coming weeks.

Bilal bin Saqib, CEO of the PCC, emphasized that with proper regulation and international collaboration, Pakistan has the potential to emerge as a global leader in crypto mining and AI innovation.

“This energy-backed digital transformation is a gateway to high-value investment and foreign exchange generation through Bitcoin mining,” Saqib said. “With evolving regulations, Pakistan could even begin accumulating Bitcoin in a national wallet, shifting from selling electricity in Pakistani Rupees to leveraging digital assets for economic resilience.”

Building a Regulatory and Infrastructure Backbone

In April, Pakistan introduced its first-ever regulatory framework for virtual assets and service providers, in line with the Financial Action Task Force (FATF) standards. This framework aims to legitimize crypto trading, build investor confidence, and attract institutional capital.

Future phases of the initiative include:

Establishing AI and Web3 innovation zones
Launching renewable-powered data centers utilizing wind, solar, and hydropower resources
Creating fintech clusters and digital asset hubs
Offering incentives such as tax holidays, customs duty exemptions, and reduced levies for infrastructure developers

Pakistan is also well-positioned to tap into the global AI data center market, which currently demands over 100 GW of capacity — while global supply lags at just 15 GW. This gap presents a massive opportunity for nations like Pakistan with surplus power and a developing digital infrastructure framework.

Strengthening Data Sovereignty and Cybersecurity

Building local data centers will allow Pakistan to retain more control over its digital ecosystem, enhance data sovereignty, and boost national cybersecurity. The infrastructure will support domestic innovation and improve the quality and speed of digital public services, while creating thousands of direct and indirect jobs in IT, engineering, and data science.

The recent arrival of the Africa-2 Cable Project, the world’s largest submarine Internet cable connecting 33 countries, has further enhanced Pakistan’s connectivity, redundancy, and bandwidth, positioning it as a viable host for high-performance AI and blockchain infrastructure.

Looking Ahead

“This is just the beginning,” said the Finance Ministry “Our long-term goal is to establish Pakistan as a sovereign digital asset economy, capable of exporting digital services, accumulating crypto reserves, and competing globally in the fourth industrial revolution.”

As the world moves deeper into the age of AI and decentralized technologies, Pakistan is aiming to turn energy into innovation — and innovation into prosperity.