Pakistan has allocated 2,000 megawatts (MW) of surplus electricity to power Bitcoin mining and AI data centers in the first phase of a national initiative aimed at leveraging its excess energy capacity. This move, announced on May 25, 2025, is spearheaded by the Pakistan Crypto Council (PCC), a government-backed body under the Ministry of Finance, as part of a broader strategy to monetize surplus electricity, attract foreign investment, and create high-tech jobs.
The initiative aligns with Pakistan’s recent legalization of cryptocurrency, which seeks to integrate blockchain technology into the country’s financial ecosystem and position Pakistan as a global hub for digital innovation. The allocation addresses Pakistan’s energy sector challenges, including high tariffs and surplus generation capacity, exacerbated by the rapid adoption of solar energy among consumers. Underutilized coal-based power plants, such as Sahiwal, China Hub, and Port Qasim, operating at just 15% capacity, are expected to be repurposed for this effort.
The initiative is supported by enhanced digital connectivity, notably the Africa-2 Cable Project, a 45,000-kilometer submarine internet cable connecting 33 countries, which has recently landed in Pakistan, boosting internet bandwidth and reliability critical for AI data centers. This first phase is part of a multi-stage digital infrastructure rollout. Future plans include leveraging Pakistan’s renewable energy potential—such as wind (50,000 MW in the Gharo-Keti Bandar corridor), solar, and hydropower—along with offering tax incentives, customs duty exemptions, and reduced taxes to attract global investors.
Register for Tekedia Mini-MBA edition 17 (June 9 – Sept 6, 2025) today for early bird discounts. Do annual for access to Blucera.com.
Tekedia AI in Business Masterclass opens registrations.
Join Tekedia Capital Syndicate and co-invest in great global startups.
Register to become a better CEO or Director with Tekedia CEO & Director Program.
The PCC, led by CEO Bilal Bin Saqib, aims to generate billions in revenue and foreign exchange through Bitcoin mining, with potential plans to accumulate Bitcoin in a sovereign digital wallet. Pakistan’s competitive edge is further strengthened by its lower energy costs and available land compared to regional counterparts like India and Singapore, where power costs and land scarcity limit scalability.
The global context supports this move, as AI data center demand exceeds 100 gigawatts while supply remains around 15 gigawatts, creating opportunities for countries like Pakistan with surplus power. With over 40 million crypto users and a ranking of ninth in Chainalysis’ 2024 Global Crypto Adoption Index, Pakistan is well-positioned to become a regional leader in Web3, AI, and blockchain technologies. However, experts emphasize the need for robust regulation and cybersecurity to sustain investor confidence, alongside addressing geographical challenges, such as the mismatch between renewable energy sources in the south and water resources for cooling data centers in the north.
By monetizing surplus electricity, Pakistan could generate billions in revenue, as projected by the Pakistan Crypto Council (PCC). The initiative is expected to attract foreign direct investment (FDI) from global tech and crypto firms, leveraging Pakistan’s low energy costs (compared to regional competitors like India and Singapore) and tax incentives. This aligns with the global demand for AI data centers, projected to exceed 100 gigawatts, and could position Pakistan as a regional hub for Web3 and blockchain technologies.
The development of AI and crypto infrastructure is likely to create high-tech jobs, boosting sectors like IT, engineering, and blockchain development. This could help address unemployment, particularly among Pakistan’s tech-savvy youth, with over 40 million crypto users already in the country (Chainalysis 2024). Utilizing underused coal plants (e.g., Sahiwal, operating at 15% capacity) and renewable energy potential (50,000 MW from wind in Gharo-Keti Bandar) could reduce financial strain on Pakistan’s energy sector, where high tariffs and surplus capacity have been persistent issues.
Legalizing cryptocurrency and promoting Bitcoin mining could accelerate Pakistan’s adoption of blockchain technology, fostering innovation in finance, supply chain, and digital identity systems. The enhanced digital connectivity from the Africa-2 Cable Project (45,000 km submarine cable) provides the bandwidth necessary for AI data centers, potentially enabling Pakistan to compete in the global AI race, where demand far outstrips supply.
Repurposing surplus electricity addresses inefficiencies in Pakistan’s energy grid, but reliance on coal-based plants raises environmental concerns due to high carbon emissions. Future phases focusing on wind, solar, and hydropower could align with global sustainability goals, but scaling renewable infrastructure will require significant investment and time. Pakistan’s ranking as ninth in the 2024 Chainalysis Global Crypto Adoption Index and its competitive energy costs could make it a leader in the Global South for crypto and AI industries, potentially challenging established hubs like Singapore or Dubai.
The economic benefits of crypto mining and AI data centers are likely to concentrate in urban areas with better infrastructure, leaving rural regions—where energy access remains inconsistent—further behind. Rural communities may not directly benefit from job creation or technological advancements. The high capital requirements for crypto mining and AI infrastructure favor large investors and corporations, potentially exacerbating wealth inequality. Small-scale miners or local businesses may struggle to compete, limiting trickle-down effects.
While Pakistan has over 40 million crypto users, access to high-speed internet and advanced tech skills is uneven. Urban centers like Karachi and Lahore will likely see faster adoption of blockchain and AI technologies, while less-connected regions lag. The initiative demands a workforce skilled in blockchain, AI, and cybersecurity. Without widespread education and training programs, only a small, educated elite may benefit, deepening the skills divide.
Allocating 2,000 MW to crypto and AI could divert resources from addressing energy shortages in underserved areas. While the initiative targets surplus power, public perception of prioritizing high-tech industries over basic electricity access could spark social unrest. Reliance on coal plants for the initial phase may disproportionately affect marginalized communities near these facilities, who bear the brunt of pollution without reaping economic benefits.
Pakistan’s low energy costs and tax incentives may attract global firms, but without robust regulations, there’s a risk of exploitation, where foreign entities extract profits while contributing minimally to local development. This could reinforce global economic hierarchies rather than challenge them. Weak cybersecurity frameworks could expose Pakistan to risks like data breaches or crypto fraud, potentially undermining investor confidence and limiting its ability to compete with more established tech hubs.
Cryptocurrency legalization may face resistance in conservative segments of society, where digital currencies are viewed with skepticism or associated with illicit activities. Bridging this cultural divide will require public education and transparent regulation. The tech sector in Pakistan, like many globally, is male-dominated. Without targeted policies, women may be underrepresented in the new jobs and opportunities created by this initiative.
Expand internet and energy access to rural areas to ensure equitable benefits from the crypto and AI boom. Launch nationwide programs to teach blockchain, AI, and cybersecurity skills, targeting marginalized groups and women. Develop robust cybersecurity and financial regulations to protect against fraud and ensure local economic benefits. Prioritize renewable energy development to reduce environmental impacts and align with global sustainability trends.
Ensure tax incentives and opportunities are accessible to local businesses and small-scale miners, not just large corporations. Pakistan’s initiative to allocate 2,000 MW for Bitcoin mining and AI data centers, alongside crypto legalization, has the potential to drive economic growth, technological innovation, and global competitiveness.
However, it risks deepening economic, digital, and energy divides within the country and reinforcing global inequalities if not managed inclusively. Strategic investments in infrastructure, education, and regulation will be critical to ensuring equitable benefits and positioning Pakistan as a sustainable leader in the global tech landscape.