Government allocates 2,000MW for Bitcoin mining and AI data centers
In an unprecedented move aimed at revolutionizing Pakistan’s position in global digital innovation, the government has revealed plans to allocate 2,000 megawatts (MW) of electricity for Bitcoin mining and artificial intelligence (AI) data centers in the initial phase of a nationwide initiative. After a recent decision to legalize cryptocurrency in order to attract foreign investment, the establishment of the Pakistan Crypto Council (PCC) was announced in March to oversee the integration of blockchain technology and digital assets into the financial sector.
Entrepreneur Bilal Bin Saqib was appointed as the chief advisor to the finance minister on the PCC, emphasizing the government’s commitment to this forward-thinking strategy. The Finance Division states that this ambitious project, led by the PCC, seeks to leverage surplus electricity for the creation of high-tech jobs, the attraction of foreign direct investment, and the generation of significant revenue for the government. Finance Minister Muhammad Aurangzeb lauded this initiative as a key milestone in Pakistan’s digital journey, converting excess energy into economic growth, innovation, and international income.
Pakistan’s strategic position provides a unique advantage for establishing itself as a global data center hub, bridging Asia, Europe, and the Middle East. The statement highlights the keen interest expressed by global players in Bitcoin mining and data infrastructure following the establishment of the PCC. By repurposing underutilized power generation capacity into valuable digital assets, Pakistan positions itself to attract substantial investment and revenue through the operation of AI data centers and Bitcoin mining.
CEO Bilal Bin Saqib underlines the transformative potential of this initiative, citing the opportunity for Pakistan to become a prominent player in the global crypto and AI landscape with proper regulation and international collaboration. The move towards leveraging digital assets like Bitcoin for economic stability marks a significant shift for Pakistan, presenting a competitive environment with stable and affordable energy compared to neighboring countries like India and Singapore.
Furthermore, Pakistan’s recent establishment of the Africa-2 Cable Project strengthens its digital connectivity, enhancing internet bandwidth, latency, and resilience through redundant fiber routes. With over 40 million crypto users, Pakistan is poised to lead in digital services regionally, anticipating the creation of thousands of jobs in engineering, IT, and data sciences through the development of AI data centers.
This initiative represents just the beginning of a broader digital infrastructure rollout in Pakistan, with future stages anticipated to include renewable energy-powered facilities and strategic partnerships with blockchain and AI firms. Proposed incentives such as tax holidays and customs duty exemptions aim to attract developers and foster innovation in AI infrastructure. Pakistan’s surplus power, geographical advantages, renewable energy potential, and digitally engaged population position it as a key player in the digital revolution, ready to lead the next generation of technological transformation on the global stage.
