Govt allocates 2,000MW of power for bitcoin mining, AI data centres
KARACHI: Pakistan has allocated 2,000 megawatts of electricity to support Bitcoin mining and artificial intelligence (AI) data centres, according to a statement issued by the finance ministry on Sunday.
The initiative, led by the Pakistan Crypto Council (PCC) — a Ministry of Finance-backed body — is part of a broader strategy to attract foreign investment, create high-skilled jobs, and build a sovereign digital asset economy.
In an interview with Geo.tv last week, PCC CEO Bilal Bin Saqib stated that the government aims to repurpose underutilised energy capacity into a high-value digital infrastructure plan.
The first phase of the project intends to capitalise on Pakistan’s idle power generation by providing electricity to compute-intensive operations such as AI processing and cryptocurrency mining.
Experts have welcomed the move. Ahtasam Ahmad, Energy Finance Lead at Renewables First, noted: “Surplus capacity being redirected towards crypto mining and AI data centres is a welcome development. Using clean energy sources like wind and solar allows the government to offer competitive tariffs since the marginal cost of generation is essentially zero. Our existing solar and wind plants are underutilised due to dispatch challenges, making this redirection economically sensible.”
With over 20 million estimated crypto users and a population exceeding 250 million, Pakistan ranks among the world’s largest untapped digital markets. Its strategic location connecting Asia, the Middle East, and Europe positions it as a potential hub for data traffic and cloud infrastructure.
Finance Minister Muhammad Aurangzeb described the initiative as a pivotal shift, aiming to convert surplus electricity into “innovation, investment, and international revenue.”
Several international firms have reportedly engaged in exploratory discussions with the PCC, with further delegations expected to visit. Pakistan’s appeal is enhanced by comparatively lower energy costs and available land, which are constraints in markets such as India and Singapore.
However, experts urge caution. Ahmad added: “There is a geographical mismatch that could limit effectiveness. Most renewable capacity is in the south, while crypto mining and data centres require abundant water resources for cooling, mainly available in the north. This creates transmission bottlenecks that could restrict off-take.”
The plan coincides with improvements in Pakistan’s digital connectivity. The recent landing of the Africa-2 submarine cable — part of a 45,000 km network linking 33 countries — has increased bandwidth and reduced latency, crucial for large-scale data centre operations.
Long-term plans include developing AI and crypto infrastructure powered by renewable sources like wind, solar, and hydro, particularly in high-potential areas such as the Gharo-Keti Bandar wind corridor. Officials are also considering tax incentives, duty exemptions, and other regulatory measures to attract investment.
CEO Bilal Bin Saqib stated: “This energy-backed transformation gives Pakistan an opportunity to generate USD-denominated revenues through mining while laying the groundwork for domestic AI capacity.” He added that Pakistan could eventually explore accumulating Bitcoin in a sovereign digital wallet, shifting from selling power in rupees to holding digital assets as a hedge.