Pakistan has announced the allocation of 2,000 megawatts (MW) of electricity in the first phase of a groundbreaking national initiative aimed at powering bitcoin mining operations and artificial intelligence (AI) data centres. The move, confirmed by the finance ministry on May 26, 2025, reflects Islamabad’s strategic efforts to utilize surplus electricity and boost the country’s digital infrastructure.
The decision comes amid ongoing challenges in Pakistan’s energy sector, where high electricity tariffs and surplus generation capacity coexist, creating a complex landscape. While the nation struggles with the cost of power, it also faces an unusual abundance of electricity, particularly as solar energy adoption accelerates. More consumers are turning to solar and other renewable sources to reduce expenses, further complicating energy management.
To address these issues and tap into emerging technology markets, the government-backed Pakistan Crypto Council (PCC) is spearheading this initiative. The PCC’s role is critical as it aims to monetize surplus electricity by directing it towards high-demand sectors like cryptocurrency mining and AI-driven data centres. This initiative not only seeks to optimize energy usage but also aims to create high-tech jobs and attract much-needed foreign investment.
The allocation of 2,000 MW is just the beginning, marking the first phase of a broader, multi-stage rollout designed to build Pakistan’s digital infrastructure. This strategy aligns with global trends where countries leverage their energy assets to foster technology-driven economic growth. By supporting bitcoin mining and AI, Pakistan positions itself to enter lucrative, cutting-edge markets that can stimulate innovation and economic diversification.
This development also highlights the government’s recognition of the importance of digital transformation and emerging technologies. With the rise of AI and blockchain globally, the demand for reliable and affordable electricity to power data centres and crypto farms is soaring. Pakistan’s move to channel surplus energy into these sectors demonstrates foresight in integrating energy management with digital economy ambitions.
Industry experts suggest that this approach can help mitigate energy sector inefficiencies while creating value-added industries within Pakistan’s economy. Bitcoin mining, although controversial due to its energy consumption, is seen by many as a driver for blockchain adoption and associated technological innovations. Meanwhile, AI data centres are essential for supporting machine learning, big data analytics, and smart applications that are reshaping industries worldwide.
Moreover, the government’s plan to allocate electricity for these tech hubs is expected to improve investor confidence in Pakistan’s technology ecosystem. Foreign investors, particularly in the blockchain and AI sectors, have been closely monitoring regulatory and infrastructural developments. This proactive policy could position Pakistan as a competitive destination for tech investments in South Asia.
The initiative also dovetails with Pakistan’s broader goals to foster a digital economy and modernize its technological capabilities. With a young population increasingly engaged in tech innovation, creating infrastructure that supports cutting-edge technologies could accelerate the country’s economic transformation.
In summary, Pakistan’s allocation of 2,000 MW of electricity for bitcoin mining and AI data centres marks a significant step in the country’s digital infrastructure development. It addresses energy sector challenges while opening new avenues for technological growth, job creation, and foreign investment. The initiative, led by the Pakistan Crypto Council, is a clear signal of Islamabad’s commitment to embracing emerging technologies and harnessing them to drive economic progress.
