Govt announces 2,000MW allocation for AI, crypto mining

Govt announces 2,000MW allocation for AI, crypto mining, aiming to convert surplus power into innovation, jobs, and digital revenue.

In a bold step toward becoming a global digital innovation hub, the Government of Pakistan has announced the allocation of 2,000 megawatts of electricity in the first phase of a national initiative to support Bitcoin mining and Artificial Intelligence (AI) data centers. The project, led by the Pakistan Crypto Council (PCC) under the Ministry of Finance, aims to monetise surplus power, attract billions in foreign investment, generate government revenue, and create high-tech employment opportunities.

Finance Minister Muhammad Aurangzeb highlighted this allocation as a strategic turning point in Pakistan’s digital transformation, turning underutilised electricity into a source of innovation and economic growth. Given its unique geographic location bridging Asia, Europe, and the Middle East, Pakistan is well-placed to become a global data center hub. The PCC has already attracted international attention, with major Bitcoin mining and data infrastructure firms expressing strong interest.

The Ministry of Finance noted that Pakistan’s idle energy capacity, especially from plants running below their potential, can now be repurposed into high-value digital assets. AI and crypto mining, both energy-intensive sectors, are seen as ideal candidates for utilising this surplus. Bilal Bin Saqib, CEO of the PCC, emphasized that Pakistan could emerge as a global AI and crypto powerhouse, especially with proper regulation and international cooperation. He also mentioned the potential for Pakistan to hold Bitcoin in a national digital wallet, enabling revenue in USD rather than PKR.

Additionally, Pakistan’s competitive advantage over countries like India and Singapore is growing. While demand for AI data centers exceeds 100GW globally, supply remains around 15GW. Pakistan’s affordable power, vast land availability, and regulatory momentum offer a rare opportunity. This potential is further strengthened by the landing of the Africa-2 Cable Project, the world’s largest submarine cable, boosting internet speed, reliability, and bandwidth.

With over 250 million people and 40 million crypto users, Pakistan is positioned to become a digital leader. Establishing domestic data centers will enhance data sovereignty, cyber resilience, and national AI capabilities; it will help in generating thousands of jobs in IT, engineering, and data science.

The first phase is just the beginning. Future plans include renewable-powered digital facilities, fintech and AI innovation hubs, and strategic partnerships with global tech giants. Incentives such as tax holidays, duty exemptions, and reduced levies for AI infrastructure are also under consideration. These developments will accelerate Pakistan’s emergence as a sovereign digital economy capable of exporting services and accumulating digital assets.