Pakistan Allocates 2,000 Megawatts for Bitcoin Mining, AI Data Centers

Coin WorldMonday, May 26, 2025 9:09 am ET
1min read

Pakistan has announced a significant initiative to allocate 2,000 megawatts of electricity for Bitcoin mining and artificial intelligence (AI) data centers. This move is part of the government's broader efforts to legalize cryptocurrency, attract foreign investment, and modernize its technological infrastructure.

The Pakistan Crypto Council (PCC), which is overseeing the project, confirmed that three underutilized coal-powered plants, currently operating at just 15% capacity, will be repurposed to support this initiative. This strategic decision aims to leverage existing but underused resources to drive economic growth and technological advancement.

Daniel Batten, a Bitcoin mining researcher, provided insights into the potential impact of this allocation. He suggested that if half of the allocated power is directed toward Bitcoin mining and the operations are conducted under near-optimal conditions, Pakistan could generate around 17,000 BTC annually. This projection highlights the substantial economic benefits that could arise from this initiative.

Batten also noted that this development could spark regional competition, with neighboring countries like India potentially following suit. This competitive dynamic could further accelerate the adoption of cryptocurrency and blockchain technology in the region, fostering innovation and economic development.

Pakistan's crypto ambitions have been on the rise, with several notable moves and projects initiated in recent months. The government has been laying the regulatory groundwork for the emerging industry, appointing Binance founder Changpeng Zhao as an advisor to the PCC, and partnering with World Liberty Financial (WLFI), a DeFi venture, to promote blockchain adoption. These steps underscore the country's commitment to embracing digital assets and leveraging them for economic growth.

Despite the potential benefits, Pakistan's strategy puts it in a unique position among countries with active loan agreements with the International Monetary Fund (IMF). The country recently secured a $2.1 billion IMF package to support economic recovery, yet remains committed to expanding its crypto footprint. This approach aligns Pakistan with other nations like El Salvador, Kenya, Ethiopia, and Argentina, which have pursued Bitcoin-related projects while under IMF programs.

The IMF has repeatedly warned about the financial risks associated with exposure to Bitcoin, particularly when governments are directly involved in buying or mining the asset. However, none of these countries have halted their adoption plans. El Salvador, for instance, has continued to expand its Bitcoin reserves, now holding over 6,000 BTC, valued at $678 million, despite the IMF's pushback. This resilience in the face of regulatory concerns underscores the growing global acceptance and potential of cryptocurrency as a viable economic tool.