Pakistan allocates 2,000MW power for Bitcoin mining and AI centers

Pakistan has allocated 2,000 megawatts (MW) of surplus electricity in the first phase of a national initiative to power Bitcoin mining and artificial intelligence (AI) data centers.

This move is part of a broader digital transformation strategy led by the Pakistan Crypto Council (PCC), under the Ministry of Finance, aimed at monetizing underutilized power generation capacity, attracting foreign investment, creating high-tech jobs, and generating significant government revenue.

The allocated electricity primarily comes from underutilized coal-based power plants operating at low capacity, such as Sahiwal, China Hub, and Port Qasim, which will be repurposed for Bitcoin mining and AI operations.

Pakistan’s geographic location as a digital bridge between Asia, Europe, and the Middle East is seen as a strategic advantage to become a global hub for data centers and digital infrastructure.

The initiative is expected to attract billions of dollars in foreign direct investment and enable the government to generate foreign exchange in US dollars through Bitcoin mining activities.

Pakistan plans to offer tax incentives, customs duty exemptions on imported equipment, and reduced tax rates for AI infrastructure developers to encourage investment.

The initiative is multi-phased, with future phases expected to include facilities powered by renewable energy sources such as wind, solar, and hydropower to balance growth with environmental responsibility.

The country’s recent landing of the Africa-2 submarine internet cable enhances bandwidth and redundancy, supporting data-heavy AI operations.

The PCC’s CEO, Bilal Bin Saqib, highlighted the potential for Pakistan to become a significant player in the global crypto and AI sectors with proper regulation, transparency, and international collaboration.

This strategic allocation marks a pivotal moment in Pakistan’s digital economy, transforming excess energy into innovation, investment, and international revenue, while positioning the country as a competitive destination for Bitcoin mining and AI data centers compared to regional peers like India and Singapore.

It's me, @justmythoughts, an ordinary Hive user looking to make the most of the platform. I will appreciate your support. Follow me for more. Thanks, Gracias :)