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

The Pakistani government 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

The Pakistani government 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, the finance ministry announced on Sunday.

The initiative is being spearheaded by the Pakistan Crypto Council (PCC), a government-backed body operating under the Ministry of Finance, as part of a broader strategy to monetize surplus electricity, generate billions of dollars in foreign direct investment, and transform Pakistan into a global leader in digital innovation.

Pakistan is uniquely positioned, both geographically and economically, to become a global hub for data centers, offering the most strategic location in the world for data flow and digital infrastructure as a bridge between Asia, Europe, and the Middle East.

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

“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,” Finance Minister Muhammad Aurangzeb was quoted as saying by his ministry.

Since the inception of the PCC, there has been tremendous interest from global bitcoin miners and data infrastructure companies, and several international firms have already visited Pakistan for exploratory discussions, according to the finance ministry. Following this landmark announcement, more global players are expected to visit in the coming weeks.

It said Pakistan’s routinely underutilized power generation capacity is now being put to better use.

“AI data centers 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 ministry said.

PCC CEO Bilal bin Saqib highlighted the transformative nature of this initiative, stating that with proper regulation, transparency, and international collaboration, Pakistan can become a global crypto and AI powerhouse.

“This energy-backed digital transformation not only unlocks high-value investment but enables the government to generate foreign exchange in USD through bitcoin mining,” Saqib said.

“Additionally, as regulations evolve, Pakistan can accumulate bitcoin directly into a national wallet, marking a monumental shift from selling power in Pakistani Rupees (PKR) to leveraging digital assets for economic stability.”

In April, Pakistan introduced its first-ever policy framework to regulate virtual assets and service providers, aligning with compliance and financial integrity guidelines of the global Financial Action Task Force (FATF). The move came after the government body launched the Pakistan Crypto Council (PCC) in March to create a legal framework for cryptocurrency trading in a bid to lure international investment.

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.

Offering stable and affordable energy presents a highly competitive environment compared to regional counterparts like India and Singapore, where rising power costs and land scarcity limit scalability, according to the finance ministry.

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

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-kilometer global network connecting 33 countries through 46 landing stations, has now arrived in Pakistan. This milestone will enhance Pakistan’s Internet bandwidth, latency, and resilience through redundant fiber routes — crucial for ensuring high availability and operational continuity for AI data centers.

With a population of over 250 million and more than 40 million crypto users, Pakistan holds immense potential as a regional leader in digital services, the finance ministry said.

Establishing local AI data centers 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 centers are expected to create thousands of direct and indirect jobs, catalyzing the development of a skilled workforce in engineering, IT, and data sciences.

“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 (50,000 MW potential in the Gharo-Keti Bandar corridor), solar, and hydropower resources — strategic international partnerships with leading blockchain and AI companies, and the establishment of fintech and innovation hubs,” the ministry said.

“These efforts will be complemented by proposed incentives such as tax holidays