Pakistan Plugs In: 2,000 MW Surge Fuels Bitcoin Mining and AI Boom

Pakistan’s energy grid just got a turbocharge—2,000 megawatts earmarked for Bitcoin miners and AI developers. That’s enough juice to power a small country—or a very large pile of GPUs.

Mining meets machine learning: The move positions Pakistan as an unexpected player in the global tech arms race. Who needs stable governance when you’ve got cheap electricity?

Wall Street analysts are already salivating—or is that just the sound of another speculative bubble inflating? Either way, the energy-hungry sectors just got a new playground.

• Pakistan invests 2,000 MW surplus power into crypto and AI projects.
• Government to provide renewable energy to Bitcoin miners in later phases.
• Foreign investment in Pakistan’s digital economy is expected to soar.

Pakistan has allocated 2,000 MW of surplus electricity to Bitcoin miners and AI centers. This plan intends to cut taxes to develop the country’s digital economy and attract foreign investors. The initiative is part of a digital transformation efforts spearheaded by the Pakistan Crypto Council and supported by the Ministry of Finance.

Pakistan Shoves More Power to AI and Bitcoin Miners

In the first phase, the government intends to use the extra electricity for AI and crypto mining operations. This action is expected to harness extra power and create new economic opportunities. Finance Minister Muhammad Aurangzeb expressed confidence that the initiative would attract billions in foreign investment and help create high-tech jobs for Pakistanis.

There is a lot of interest in the project from international investors. In the past few months, Pakistan has received foreign delegations interested in collaboration. The tax benefits for AI centers and duty exemptions for bitcoin miners increases Pakistan’s appeal to investors.

In the second phase of the initiative, the government aims to provide renewable energy to mining operations. The goal is to tackle environmental issues and promote the growth of the digital economy. The use of renewable energy will also help balance the sector’s sustainable development.

Role of Pakistan Digital Assets Authority (PDAA)

Pakistan advances its efforts to control and oversee the digital asset sector. On May 21, the Ministry of Finance endorsed the creation of the Pakistan Digital Assets Authority (PDAA). The authority has been tasked to license crypto exchanges, custodians and other blockchain-based platforms.

Moreover, the authority seeks to tokenize national assets and government debt to boost the country’s economic growth. The authority will enable Pakistan to monetize extra electricity and boost the country’s digital economy.

Pakistan Global Crypto Position

Pakistan ranks ninth in the 2024 Chainalysis’ crypto adoption index due to increased retail adoption of cryptocurrencies and transactions on centralized platforms. Pakistan is expected to have more than 27 million crypto users by 2025 with the growth in the crypto sector.

Pakistan’s efforts positions it as a leader to build AI and crypto infrastructure across the world. The country’s clear rules, transparent system and increase in foreign investment, positions it as a major force in the global digital economy. Experts believe that the country could become a leader in Bitcoin and AI sectors.

Related Reading | Bitcoin Powers Ahead as Kiyosaki Warns Against Fiat Savings