Pakistan Allocates 2,000 MW of Electricity to Power Bitcoin Mining and AI Data Centers

This move aims to repurpose Pakistan's underutilized power generation capacity into a high-value digital asset, monetize surplus electricity

The government of Pakistan has allocated 2,000 megawatts (MW) of electricity in the first phase of a national initiative to power Bitcoin mining and artificial intelligence (AI) data centers, aiming to repurpose the country's unutilized power generation capacity into a high-value digital asset.

This move, which also includes plans to attract billions of dollars in foreign direct investment and generate significant revenue for the government, was announced by the Pakistan Crypto Council (PCC), a government-backed body launched to regulate and integrate blockchain technology and digital assets into the country's financial landscape.

The council, which comes under the Ministry of Finance, is aiming to bring together the country's leading entrepreneurs, academics, and government officials to oversee this initiative. Entrepreneur Bilal Bin Saqib has been appointed as the chief adviser to the finance minister on the council.

Announcing this allocation, Finance Minister Muhammad Aurangzeb described it as a pivotal moment in Pakistan's digital transformation.

"We are strategically positioned as a digital bridge between Asia, Europe, and the Middle East, making us an ideal location for data flow and digital infrastructure," the minister said.

"This initiative will attract global Bitcoin miners and leading AI firms to Pakistan. Several international companies are already engaged in exploratory discussions."

To fuel these operations, the government plans to utilize surplus electricity, particularly from coal-based power plants operating below capacity, such as Sahiwal, China Hub, and Port Qasim. This approach aims to convert idle energy, which Aurangzeb described as a financial liability, into a sustainable and revenue-generating opportunity.

Highlighting Pakistan's competitive advantages over regional counterparts like India and Singapore, the minister noted the country's stability, affordable energy, and available land.

"We are offering a unique proposition with tax incentives and customs duty exemptions to encourage foreign investment in this domain," he added.

As this initiative progresses, Pakistan aims to incorporate renewable energy sources for these data centers and mining operations, further balancing growth with environmental responsibility. There are also plans for fintech and innovation hubs to support this digital ecosystem.

In the long term, this initiative could lead to the accumulation of Bitcoin directly into a national wallet, marking a shift from selling power in Pakistani Rupees to leveraging digital assets for economic stability and foreign exchange generation in U.S. dollars, according to PCC CEO Bilal Bin Saqib.