In a groundbreaking announcement at the BTC 2025 conference in Las Vegas, Pakistan announced an ambitious plan to allocate 2,000 megawatts (MW) of surplus electricity to fuel Bitcoin mining and artificial intelligence (AI) data centres, showing a key pivot towards digital finance and technological innovation. The strategic initiative is led by the Pakistan Crypto Council (PCC) and is defending Pakistan as a potential global hub for digital currency and high technology industries by Finance Minister Muhammad Aurangzeb and the Prime Minister of Blockchain and Chief Minister Crypto Bilal bin Saqib. By harnessing excess energy capabilities, countries aim to transform long-standing economic liability into profitable opportunities and navigate complex national and international challenges.
Pakistan’s energy sector has long been working on the paradox. Despite heavy investments in electricity infrastructure, the country faces high power tariffs and ample utilization capabilities, especially from coal-fired power plants operating at just 15% capacity. This surplus is estimated to be able to power two major cities, and is a financial burden due to reduced industrial activity and inefficiency in distribution. The government’s decision to redirect this idle energy to Bitcoin mining and AI data centers is a calculated move to monetize this resource. According to estimates from Bitcoin mining researcher Daniel Batten, the allocated 2,000 MW could generate up to 17,000 BTC per year, which is equivalent to around $1.8 billion at current prices. The initiative not only promises economic returns, but also aims to stabilize the power grid by exploiting excess capacity during off-peak periods.
The announcement came shortly after Pakistan’s digital currency legalization earlier this year, and has attracted interest from international Bitcoin miners and data infrastructure companies. The establishment of the Pakistan Digital Assets Authority (PDAA) further emphasizes the government’s commitment to creating a regulated, investor-friendly environment for digital finance. PDAA aims to protect investors, empower developers, build a secure framework for blockchain-based activities, and leverage Pakistan’s estimated 15-20 million digital currency users and the potential of $25 billion in markets. The government has also introduced tax incentives for AI data centres, mandatory exemptions for Bitcoin mining equipment, and demonstrated a proactive approach to attracting foreign investment.
Saqib, who also serves as the CEO of PCC, stressed that the initiative is not a speculative transaction but rather a “sovereign reserve” for BTC to signal Pakistan’s long-term commitment to distributed finance (DEFI). At BTC Vegas 2025, Saqib has already announced the creation of a national Bitcoin wallet to retain digital assets in state custody, taking inspiration from the US rebirth plan for strategic Bitcoin Reserve. “We will hold these Bitcoins, but we will never sell them,” declared Saqib, framing the reserve as a hedge as a step towards economic instability and digital transformation.
However, the plan has sparked serious scrutiny, both nationally and internationally. The International Monetary Fund (IMF), currently engaged in financial negotiations with Pakistan, has raised concerns about allocating 2,000 MW to Bitcoin mining amid ongoing energy shortages in some regions. Critics have questioned the prioritization of power rates for miners’ subsidies. Miners call the move “confusing and opaque” at a much lower level than what was paid by households and industries. Economists also highlight the volatility of BTC, with its price surges above $110,000, while its historic volatility poses a risk to the government’s strategy of accumulating digital assets in preparation.
Domestically, the initiative is at odds with Pakistan’s current legal stance, with digital currency remaining illegal for personal use. This contradiction raises questions about the government’s ability to harmonize global ambitions with local regulations. The formation of PDAAs is a step towards clarity of regulations, but the path forward remains complicated, especially as Pakistan navigates the vulnerable economy that narrowly avoided defaults in 2023.
Pakistan’s digital infrastructure is supported by the Africa-2 Cable Project, a 45,000-kilometer submarine internet cable that connects 33 countries, enhancing the country’s appeal as a data centre hub. Located geographically to connect Asia, Europe and the Middle East, Pakistan offers competitive advantages over regional rivals such as India and Singapore, particularly when it comes to stable and affordable energy costs. Global demand for AI data centres beyond the available supply is further positioned for Pakistan to take advantage of this opportunity.
The move coincides with the growing list of Pakistan’s growing countries, including Kazakhstan, Japan, Malaysia and Bhutan, which have embraced legal Bitcoin mining to strengthen its economy. By following in the footsteps of these countries and taking inspiration from the US, Pakistan is betting on the potential for transforming blockchain technology and digital assets. However, the success of this initiative will depend on the government’s ability to address regulatory conflicts, manage energy allocation fairly, and mitigate risks associated with Bitcoin volatility.
As Pakistan embarks on this “new digital frontier,” the world is watching closely. The strategic allocation of 2,000 MW to Bitcoin mining and AI data centers represents a bold experiment in exploiting excess energy for economic benefits. If successful, it will redefine Pakistan’s role in the global digital economy, turning a country once burdened by energy overpower, into a powerhouse of innovation and investment. But the road is full of challenges, and only time can tell whether this gambling will be rewarded in a volatile world of digital currency or become a warning story.
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