Pakistan’s finance ministry has announced a bold move to allocate 2,000 megawatts of surplus power to support the development of artificial intelligence (AI) and cryptocurrency data centres. The initiative aims to harness idle energy for revenue generation, transforming a long-standing financial liability into a technological and economic opportunity.
Generative AI and crypto mining are notoriously power-hungry, requiring vast computing capabilities to manage enormous data sets and transactions. The International Energy Agency (IEA) recently estimated that a 100-megawatt data centre can consume as much electricity as 100,000 households. It also projects data centres will use nearly 3% of global energy by 2030.
Pakistan, with an installed generation capacity of approximately 45,000 megawatts, typically peaks at about 30,000 megawatts during summer, according to the Pakistan Institute of Development Economics. However, the government is obligated to pay independent power producers for unused capacity, a burden on public finances.
In a statement, the finance ministry said redirecting this idle energy — especially from underutilised plants — represents a “sustainable, revenue-generating opportunity.” The ministry confirmed that the allocation marks the first phase of a national strategy aimed at powering bitcoin mining and AI data centres.
While the initiative presents significant economic potential, Pakistan’s energy sector still faces major challenges. Large portions of the country suffer from unreliable electricity due to ageing infrastructure, poor distribution networks, and decades of sector mismanagement. Additionally, a growing number of households are switching to solar energy to avoid high utility costs, further reducing government revenue from traditional electricity sales.
This announcement comes as Pakistan, a nation of 250 million people, continues to grapple with economic pressures. The country narrowly avoided default in 2023 after receiving a crucial bailout from the International Monetary Fund (IMF). The IMF released the latest tranche of funding earlier this month, and Pakistan is currently preparing its next national budget, expected to be announced soon.
As the government looks to stabilise the economy and attract investment, leveraging excess energy to fuel digital innovation may offer a path toward economic transformation and global tech integration.
