KEY FACTS: Pakistan has allocated 2,000 megawatts of surplus electricity to power Bitcoin mining and AI data centers. The development, as announced on May 25, 2025, aims to transform the country into a global hub for digital innovation. Spearheaded by the Pakistan Crypto Council under the Ministry of Finance, the initiative seeks to monetize excess energy, attract foreign investment, and create high-tech jobs, leveraging Pakistan’s geographic position and supportive regulations, including tax incentives and the establishment of the Pakistan Digital Assets Authority. This step, backed by global interest from crypto and AI firms, positions Pakistan to capitalize on the growing digital asset and AI markets.

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Source: 24newshd

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Pakistan Allocates 2,000 MW for Bitcoin Mining and AI Data Centers

The Pakistan government has announced the allocation of 2,000 megawatts (MW) of surplus electricity to power Bitcoin mining operations and artificial intelligence (AI) data centers. This ambitious initiative, revealed on May 25, 2025, is poised to reshape Pakistan’s technological and economic landscape, marking a significant step in Pakistan’s journey toward becoming a global hub for digital innovation. The country is leveraging its underutilized energy resources to attract foreign investment, create high-tech jobs, and boost its digital economy.

The move, spearheaded by the Pakistan Crypto Council (PCC), a government-backed body under the Ministry of Finance, is part of a strategy to monetize the country’s surplus electricity, which has long been a challenge amid high tariffs and the rapid expansion of solar energy. With an estimated 10,000 MW of excess power generation capacity, Pakistan is now positioning itself as a strategic player in the global digital asset and AI sectors, capitalizing on its geographic and economic advantages.

Pakistan’s energy sector has faced persistent challenges, including high electricity costs and underutilized generation capacity, exacerbated by the growing adoption of solar energy among consumers seeking to offset rising tariffs. The government’s decision to allocate 2,000 MW in the first phase of this initiative reflects a proactive approach to transforming this surplus into a high-value digital asset. Pakistan aims to turn a liability into an economic opportunity by dedicating significant power resources to energy-intensive industries like Bitcoin mining and AI computing.

Finance Minister Senator Muhammad Aurangzeb described the allocation as a “pivotal moment” in Pakistan’s digital transformation journey. Aurangzeb said:

“This strategic move unlocks our economic potential by turning excess energy into innovation, investment, and international revenue...”

The initiative is expected to generate billions of dollars in foreign direct investment and create thousands of high-tech jobs, positioning Pakistan as a competitive player in the global digital economy.

The Pakistan Crypto Council, led by CEO Bilal Bin Saqib, has been instrumental in driving this vision. Saqib emphasized the transformative potential of the initiative, emphasizing that with proper regulation, transparency, and international collaboration, Pakistan can become a global crypto and AI powerhouse. He highlighted the country’s unique geographic position as a digital bridge between Asia, Europe, and the Middle East, making it an ideal location for data flow and digital infrastructure.

Since the formation of the PCC, several global Bitcoin mining companies and data infrastructure firms have expressed keen interest in Pakistan’s initiative. Many have already visited the country for exploratory discussions, drawn by the promise of abundant, cost-effective power and a supportive regulatory environment. To further incentivize investment, the Pakistani government is offering tax breaks and exemptions for companies establishing Bitcoin mining and AI data centers, a move designed to attract major players in the industry.

The global cryptocurrency mining sector has been reshaped in recent years, with countries like the United States, Kazakhstan, and now Pakistan vying for dominance in an industry that requires vast amounts of energy. The United States, for instance, accounts for over 40% of the global Bitcoin hashrate, but miners often rely on Chinese-manufactured equipment. Pakistan’s entry into this space, coupled with its strategic energy allocation, could challenge established players and diversify the global mining ecosystem.

Moreover, the initiative aligns with broader trends in the cryptocurrency and AI sectors. According to a report by EY-Parthenon and Coinbase, 83% of global institutions plan to increase their crypto allocations in 2025, with 51% of asset managers considering investments in digital asset companies, including mining operations. Pakistan’s move positions it to capitalize on this growing institutional interest, particularly as miners diversify their operations to include AI and high-performance computing tasks.

The allocation of power for Bitcoin mining and AI data centers is complemented by Pakistan’s evolving regulatory framework for digital assets. In April 2025, the Ministry of Finance endorsed the creation of the Pakistan Digital Assets Authority (PDAA), tasked with overseeing licensing and regulating the country’s cryptocurrency industry. The PDAA will also facilitate the tokenization of national assets and government debt, as well as support startups in building blockchain-based solutions at scale. This regulatory body is seen as a critical step in ensuring transparency and compliance with international anti-money laundering policies, addressing concerns about the crypto industry’s potential risks.

One of the most intriguing aspects of Pakistan’s strategy is the potential to accumulate Bitcoin directly into a national wallet. As regulations evolve, this approach could mark a monumental shift from selling surplus power in Pakistani rupees to leveraging digital assets for economic stability. Holding Bitcoin as a strategic reserve could hedge Pakistan against currency volatility and position itself as a forward-thinking player in the global financial system.

The government officials have indicated that the initiative will prioritize sustainable practices and collaboration with international partners to ensure environmentally responsible operations. The rapid expansion of solar energy in Pakistan could also play a role in offsetting the environmental footprint of these projects, though specifics remain unclear.

Pakistan’s decision to allocate 2,000 MW for Bitcoin mining and AI data centers comes at a time of growing global interest in digital assets and artificial intelligence. The country’s strategic location, surplus energy, and proactive regulatory approach position it uniquely to capitalize on these trends. Transforming underused power generation assets into revenue-producing ventures will address Pakistan's domestic economic challenges a well as stake a claim in the global digital economy.

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Information Sources:

• Press Release
• Cointelegraph

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