Pakistan Allocates 2,000 MW of Surplus Electricity to Bitcoin Mining and AI Data Centres
Pakistan's finance ministry, in a strategic move has announced to allocate 2,000 MW of surplus electricity to power Bitcoin mining operations and artificial intelligence (AI) data centres. As reported by The Hindu, this initiative is led by the Pakistan Crypto Council (PCC) which aims to transform excess energy into economic opportunities, addressing both energy and digital infrastructure inefficiences the country’s economy is facing. The country is on a move towards legalising cryptocurrency, aiming to attract foreign investments.
Pakistan is currently dealing with issues of increasing electricity prices and excess generation capacity, especially when demand is low. The accelerated growth in solar energy has made the situation even more complex, with consumers opting for renewable sources of energy tocounter price escalation.
Strategic Measures
Pakistan has strategically planned to monetize surplus energy and utilize unused electricity to power energy-intensive operations like Bitcoin mining and AI data centres. The Ministry has also tried to position Pakistan as a hub for digital innovation to attract global tech investments. The move also fosters high-tech employment opportunities and upskilling the youth in blockchain and AI technologies.
Bilal Bin Saqib, chief executive officer of the council, said to he Hindu, that the mining centre will be finalised based on the availability of excess power in specific regions. Saqib also mentioned that, as the third-largest global freelancer economy , the country has 15-20 million crypto users. He also plans to initiate regulatory sandboxes, or safe environments for testing, to foster innovation and growth in the fintech and freelancer economy.
Also read: Elon Musk Warns AI Data Centres Could Strain Power Supply by 2026
Phases in Implementation
The PCC aimts to implement the strategy by initially allocating 2,000 MW in the first phase of a broader, multi-stage digital infrastructure rollout. Mining centre locations will be chosen based on regional excess power availability, optimizing resource use. Pakistan's innovative approach to utilizing surplus electricity for Bitcoin mining and AI data centres represents a significant step towards modernizing its economy. This move will potentially upskill Pakistan’s youth in blockchain and AI and also boost exports through digital services.
The Finance Ministry has announced that coal-based power projects like Sahiwal, China Hub, and Port Qasim, currently operating at 15% capacity, are among those expected to be repurposed for this effort. By transforming excess energy into valuable digital assets, the country aims to address energy inefficiencies, foster technological advancement, and position itself as a competitive player in the global digital economy.
