Pakistan allocates 2,000 MW for bitcoin mining and AI data centers in digital push

Pakistan government has allocated 2,000 megawatts (MW) of electricity in the first phase of a new initiative to power Bitcoin mining and artificial intelligence (AI) data centers, marking a major step in the country’s digital infrastructure expansion.

The initiative, led by the Pakistan Crypto Council (PCC) — a government-backed body under the Ministry of Finance — aims to monetize surplus electricity, attract foreign investment and create high-tech jobs. Finance Minister Muhammad Aurangzeb called the move a "pivotal moment" in Pakistan’s digital transformation, turning excess energy into economic opportunity.

Pakistan, strategically located between Asia, Europe and the Middle East, is positioning itself as a global hub for data centers.

The PCC reported strong interest from international Bitcoin miners and AI firms, with several companies already in exploratory talks. More are expected to visit following the announcement.

The plan repurposes underutilized power capacity, directing it toward energy-intensive Bitcoin mining and AI operations. Bilal Bin Saqib, CEO of the PCC, said regulated crypto mining could generate foreign exchange in U.S. dollars and, eventually, allow Pakistan to accumulate Bitcoin in a national wallet.

With affordable energy and available land, Pakistan offers a competitive alternative to regional markets like India and Singapore, where power costs are rising.

Global demand for AI data centers has surged to over 100 gigawatts (GW), far outpacing the current 15 GW supply, creating an opening for countries with surplus energy.

Pakistan’s digital infrastructure received a boost with the recent landing of the Africa-2 submarine internet cable, a 45,000-kilometer network connecting 33 countries. The upgrade improves bandwidth and reliability for data centers.

The country’s 250 million population includes over 40 million crypto users, signaling strong potential for digital growth. Local AI data centers could also address data sovereignty concerns while creating thousands of jobs in tech and engineering.

Future phases of the initiative may include renewable energy projects, tapping into Pakistan’s wind, solar and hydropower potential, as well as tax incentives for tech investors. Officials say the move could establish Pakistan as a regional leader in blockchain, AI and digital innovation.