Pakistan is taking a significant step towards harnessing its excess electricity for Bitcoin mining operations and AI data centers. This innovative move, spearheaded by the country’s Crypto Council and finance ministry adviser Bilal Bin Saqib, aims to address energy sector inefficiencies while embracing emerging technologies.
Following consultations with various mining firms, Pakistan is set to allocate surplus electricity from its national grid to support Bitcoin mining and AI data centers. This strategic initiative is part of a broader strategy to optimize energy resources and propel the country into the forefront of technological advancements.
A key development in this endeavor is the appointment of Changpeng Zhao, the founder of Binance, as a strategic adviser to the Pakistan Crypto Council. Zhao’s role will involve providing guidance on blockchain infrastructure, regulatory frameworks, and national crypto initiatives, underscoring the country’s commitment to fostering a conducive environment for digital innovation.
Pakistan’s energy sector has faced challenges stemming from high electricity tariffs and excess capacity. To leverage surplus electricity for productive purposes, the government is exploring opportunities in Bitcoin mining and AI data centers. Saqib highlighted the importance of identifying regions with excess electricity to establish mining centers and data facilities without straining the national energy grid.
In addition to supporting Bitcoin mining, Pakistan is also looking to diversify the utilization of surplus energy by incorporating AI data centers. These centers are expected to require high-density compute workloads that can align with the intermittent nature of surplus electricity availability. Discussions are underway with mining companies to finalize infrastructure plans, energy off-take agreements, and compliance protocols.
The involvement of Changpeng Zhao in Pakistan’s crypto initiatives signifies a broader institutional push towards regulatory development and fostering a conducive environment for fintech and crypto startups. With an estimated 15 to 20 million crypto users in Pakistan, the country’s burgeoning freelance economy and expanding fintech sector present a fertile ground for blockchain and crypto-related ventures.
To further support the growth of the digital economy, Pakistan is focusing on upskilling programs in blockchain and AI targeted at the youth population. These educational initiatives aim to position the country as a digital services exporter and create employment opportunities in tech-aligned fields. By emphasizing blockchain engineering, DeFi infrastructure, and AI modeling, Pakistan aims to meet domestic industry needs and tap into cross-border service exports.
The utilization of Bitcoin mining as a means to monetize excess electricity production reflects a strategic shift in national policy towards optimizing underutilized infrastructure. As Pakistan moves forward with site selections and partner announcements, the integration of new technical standards and assessments of regional energy availability will play a crucial role in shaping the country’s digital future.