Pakistan Repurposes Surplus Energy to Power Bitcoin Mining and AI Data Centers

In a strategic move to harness its underutilized energy resources, Pakistan has allocated 2,000 megawatts (MW) of electricity to support Bitcoin mining and artificial intelligence (AI) data centers. This initiative, led by the Pakistan Crypto Council (PCC) under the Ministry of Finance, aims to transform surplus power capacity into a catalyst for digital innovation and economic growth.

The surplus energy, primarily from coal-fired power plants operating at approximately 15% capacity, will be redirected to power-intensive operations such as cryptocurrency mining and AI data processing. By doing so, the government intends to convert a longstanding financial liability into a sustainable, revenue-generating opportunity.

Finance Minister Muhammad Aurangzeb emphasized Pakistan’s unique geographical and economic positioning as a digital bridge between Asia, Europe, and the Middle East. He highlighted that this allocation marks a pivotal moment in the country’s digital transformation journey, unlocking economic potential by turning excess energy into innovation, investment, and international revenue.

The initiative is expected to attract significant foreign direct investment, create high-tech employment opportunities, and enhance Pakistan’s digital infrastructure. With over 40 million crypto users, the country holds immense potential as a regional leader in digital services. Establishing local AI data centers will not only address growing concerns around data sovereignty but also enhance cybersecurity and improve digital service delivery.

Looking ahead, the PCC plans to expand this initiative by integrating renewable energy sources such as wind, solar, and hydropower. Pakistan’s renewable energy potential includes 50,000MW in the Gharo-Keti Bandar corridor alone. Future developments may also involve strategic international partnerships with leading blockchain and AI companies, as well as the establishment of fintech and innovation hubs.

This forward-thinking approach positions Pakistan to become a regional epicenter of Web3, AI, and digital innovation, leveraging its surplus energy capacity to drive technological advancement and economic resilience.