Government Allocates 2,000 MW of Electricity for Bitcoin Mining and AI Data Centers

The administration has revealed the provision of 2,000 megawatts (MW) of power to support Bitcoin mining and AI data centers. According to the Finance Division, this action signifies the initial stage of a groundbreaking national plan designed to monetize extra energy, encourage international investment, and position the nation as a frontrunner in the digital age.

This significant undertaking, steered by the Pakistan Crypto Council (PCC) under the Ministry of Finance, is geared towards transforming Pakistan’s underused energy resources into valuable assets.

Finance Minister Senator Muhammad Aurangzeb stated, “This calculated distribution signifies a crucial juncture in Pakistan’s voyage toward digital progress, unlocking financial prospects by converting surplus energy into innovation, investment, and global income.”

According to the announcement, Pakistan holds a distinctive advantage, both geographically and economically, to emerge as a prominent global hub for data centers.

Pakistan’s advantageous location as a digital gateway linking Asia, Europe, and the Middle East has already garnered substantial interest from global Bitcoin miners and AI enterprises.

The press release mentioned, “Since the founding of the Pakistan Crypto Council, immense enthusiasm has been displayed by international Bitcoin miners and data infrastructure firms,” further noting that key participants are anticipated to visit Pakistan shortly.

Given the substantial and steady energy demands of AI and Bitcoin mining activities, Pakistan is repurposing its excess electricity, particularly from underused facilities, into a profitable avenue.

Bilal Bin Saqib, CEO of the Pakistan Crypto Council, highlighted that this energy-supported digital shift not only unlocks significant investment prospects but also empowers the government to generate foreign exchange in USD via Bitcoin mining.

He additionally disclosed that Pakistan might eventually amass Bitcoin in a national digital wallet, transitioning from selling energy in PKR to possessing digital assets for sustained economic invulnerability.

Pakistan’s digital goals are strengthened by the recent establishment of the 45,000-kilometer Africa-2 submarine internet cable, which enhances bandwidth and redundancy—a pivotal element for AI data centers.

The nation’s substantial population of 250 million, which includes 40 million cryptocurrency users, further solidifies its capacity as a regional technological center.

This statement represents merely the initial segment of a more extensive, multi-phased digital infrastructure implementation.

Future projects are anticipated to encompass facilities powered by renewable energy—harnessing Pakistan’s extensive wind (50,000 MW potential in the Gharo-Keti Bandar corridor), solar, and hydropower resources—strategic global alliances with leading blockchain and AI enterprises, and the creation of fintech and innovation centers.

These endeavors will be augmented by proposed incentives such as tax holidays, exemptions from customs duties on equipment, and diminished taxes for AI infrastructure developers.