Govt earmarks 2,000MW to power Bitcoin mining, AI data centres

• PCC CEO says Pakistan can become global crypto, AI powerhouse.  
• FinMin calls it pivotal moment in digital transformation journey.
• Several int'l firms visited country for exploratory discussions.

In a major step toward positioning Pakistan as a global digital innovation hub, the government has allocated 2,000 megawatts (MW) of electricity in the initial phase of a national plan to support Bitcoin mining and artificial intelligence (AI) data centres.

According to a statement issued by the Finance Division, the 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 monetise surplus electricity, create high-tech jobs, attract billions of dollars in foreign direct investment, and generate billions of dollars for government.

"Finance Minister Muhammad Aurangzeb said 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," read the statement.

Pakistan, a country that ranked 3rd in the Global Crypto Adoption Index, has 20 million active cryptocurrency users and $20bn + in crypto transactions.

Currently, the country ranks in the top 10 in terms of crypto adoption. With $35bn in annual remittances, the country is poised to benefit from crypto adoption.

In March this year, the government constituted the Pakistan Crypto Council (PCC) to “regulate and integrate blockchain technology and digital assets” into the nation’s financial ecosystem.

Entrepreneur Bilal Bin Saqib was appointed as its chief executive officer, signaling a commitment to integrating cryptocurrency and blockchain technology into the nation’s financial ecosystem.

"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," the Finance Division said in its statement today.

It said that since the inception of the PCC, 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.

“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.

In the statement, PCC CEO Bilal Bin Saqib emphasised the transformative nature of this initiative and 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 US dollars through Bitcoin mining.

Additionally, as regulations evolve, Pakistan can accumulate Bitcoin directly into a national wallet — marking a monumental shift from selling power in Pakistani rupees to leveraging digital assets for economic stability.

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.

Pakistan’s strategic advantage is further underscored by the global context as while AI data centre demand has soared to over 100 gigawatts (GW), the global supply remains around 15GW. This massive shortfall creates an unprecedented opportunity for countries like Pakistan with surplus power, land and an emerging regulatory framework, it added.

The statement noted that the country’s 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.

This milestone enhances Pakistan’s internet bandwidth, latency and resilience through redundant fiber routes — key for ensuring high availability and operational continuity for AI data centres.

With 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.

These centres are expected to create thousands of direct and indirect jobs, catalysing the development of a skilled workforce in engineering, IT, and data sciences.

The statement added that this announcement marks only the first phase of a broader, multi-stage digital infrastructure rollout. Future developments are expected to include renewable energy-powered facilities — leveraging Pakistan’s immense wind (50,000MW potential in the Gharo-Keti Bandar corridor), solar, and hydropower resources — as well as strategic international partnerships with leading blockchain and AI companies, and the establishment of fintech and innovation hubs.

These efforts will be complemented by proposed incentives such as tax holidays, customs duty exemptions on equipment, and reduced taxes for AI infrastructure developers, it added.

“Pakistan’s combination of surplus power, geographic advantage, advanced subsea cable connectivity, renewable energy potential, and a large, digitally engaged population creates a compelling case for becoming a regional epicentre of Web3, AI, and digital innovation.

“With the right incentives, strategic investments, and collaborative partnerships, Pakistan is positioning itself not only as a destination for global digital infrastructure but also as a sovereign economy that can accumulate digital assets, export digital services, and lead in the next generation of technological transformation.”

The allocation is part of Islamabad's plans to use its surplus electricity to bitcoin mining and AI data centres. Pakistan's energy sector is grappling with challenges, including high electricity tariffs and surplus generation capacity.

The rapid expansion of solar energy has further complicated the landscape, as more consumers turn to alternative energy sources to mitigate high costs.

— With additional input from Reuters