Pakistan provides 2,000 MW of electricity for Bitcoin mining
Pakistan wants to invest excess energy in Bitcoin mining and AI centers with a nationwide infrastructure initiative. The government relies on economic modernization technology.
Pakistan has announced that 2,000 megawatts (MW) of excess energy to build Bitcoin mining farms and AI data centers, as from official reports emerges. That is about 4% of the national energy capacity and enough electricity to supply small nation states like Luxembourg. The decision is part of a comprehensive plan to digitize and modernize the national economy. The electricity mainly comes from underlyized power plants, which have so far remained unused. The measure is coordinated by the newly created Pakistan Crypto Council (PCC) and could make the country a node for digital infrastructure in South Asia in the medium term.
Bitcoin mining meets geopolitics and digitization
Pakistan pursues several goals with the initiative: it wants to expand the country's digital economy, monetize its surpluses of energy and attract international investments. With a strategic location between China, the Middle East and Europe, Pakistan offers infrastructure attractive prerequisites for global data processing.
The project provides to build large mining centers in the first phase that operated through private investors but are regulated by the government. At the same time, data centers for AI applications are created. Pakistan sees itself as a regional innovation location and wants to catch up with the deficit towards countries such as VAE or India.
Regulation, renewable energy and the future outlook
The government also works on the establishment of a Pakistan Digital Assets Authority (PDAA). This new supervisory authority is intended to regulate the operation of crypto B exchanges, wallets, tokenized platforms and mining activities. Licenses for mining farms and tax incentives are also planned. Another goal is to couple mining with renewable energies- for example from solar and hydropower. So Pakistan wants to improve the image of the industry and enable sustainable innovation.
Analysts evaluate Pakistan's initiative as a strategic signal to investors and tech companies: The country is actively positioning itself in the global competition for digital infrastructure. At the same time, Pakistan shows that Bitcoin mining not only has to be associated with instability or waste of energy, but can also be used as an economic policy instrument. Mining ultimately represents the most efficient method for monetization of excess energy. Observers compare the step with initiatives El SalvadorKazakhstan and the United Arab Emirates – countries that also understand Bitcoin as an economic opportunity and create regulatory framework conditions for digital assets.
