Pakistan Plans 2,000 MW for Bitcoin Mining & AI Data Centers

Pakistan to allocate 2,000 MW of surplus electricity for Bitcoin mining and AI data centers

Pakistan is to allocate 2,000 megawatts (MW) of surplus electricity for Bitcoin mining and artificial intelligence (AI) data centers. This is the first phase of the country’s national digital infrastructure plan, according to Reuters, citing the finance ministry.

The plan aims to utilize excess electricity for productive purposes, tapping into the growing cryptocurrency and AI sectors. By directing abundant power towards these high-tech industries, Islamabad hopes to encourage innovation and attract foreign investment.

Pakistan is facing challenges in its energy sector with high electricity tariffs and excess generation capacity. The surge in solar power installations has intensified this situation as more consumers are shifting to alternative energy sources to cut costs. The government’s approach addresses this by using surplus electricity for emerging tech industries instead of letting it go underutilized.

Crypto Regulation and Industry Growth

The plan comes as the Pakistan Digital Assets Authority (PDAA) has been established by the finance ministry to oversee and regulate the cryptocurrency market. Finance Minister Muhammad Aurangzeb said Pakistan doesn’t want to just “catch up” with global trends but be a leader in the digital asset space.

This regulatory framework will provide clarity and security for investors and entrepreneurs and will create a safer environment for crypto related ventures. The government backed Pakistan Crypto Council (PCC) is working to bring international crypto miners to the country, CEO Bilal Bin Saqib is actively engaging with Power Minister Awais Leghari on this front.

Key Benefits and Strategic Outlook

• Productive use of excess electricity reduces wastage and stabilizes the energy sector.

• Attracts global crypto miners by offering low cost energy and favorable regulatory environment.

• Supports AI innovation with dedicated power for data centers fueling technology advancements.

• Boosts Pakistan’s digital economy by integrating cryptocurrency and AI into national growth plans.

Bilal Bin Saqib calls Pakistan a “low cost, high growth market” ready to move beyond its current peripheral status in the crypto ecosystem. With 2,000 MW allocated for these sectors, Pakistan is signaling its intent to become a major player in the global tech landscape.

By utilizing its surplus energy and developing a solid regulatory framework, Pakistan can have a transformative impact on its tech industry and potentially become a hub for cryptocurrency mining and AI innovation in South Asia.