Pakistan to Use Surplus Electricity for Bitcoin Mining, AI Data Centers

Pakistan is exploring the use of its surplus electricity to power Bitcoin mining operations and artificial intelligence data centers. This initiative is part of a broader strategy to address inefficiencies in the energy sector and advance the country's position in emerging technologies. The move comes after consultations with multiple mining firms and follows the appointment of Changpeng Zhao, founder of Binance, as a strategic adviser to the Pakistan Crypto Council.

Zhao's advisory role will encompass support for blockchain infrastructure, guidance on regulatory frameworks, and assistance with national crypto initiatives. The government aims to convert surplus generation into economically productive activities, given the volatility in Pakistan's energy sector due to high electricity tariffs and persistent overcapacity. The expansion of solar installations by consumers has further complicated national grid demand forecasts and reduced industrial off-take.

The location of mining centers will be determined by the regional availability of excess electricity. Several provinces already show patterns of consistent oversupply, which can support localized mining operations without burdening the wider energy network. The country also aims to diversify the use of surplus energy, with AI data centers being cited as a parallel deployment. These facilities are projected to require continuous, high-density compute workloads that can operate in sync with the intermittent nature of available grid surplus.

Talks are ongoing with mining companies to determine infrastructure, energy off-take agreements, and compliance protocols. Zhao's inclusion on the advisory board is part of a broader institutional push, extending to regulatory development and helping establish sandbox environments for fintech startups and crypto-related ventures to operate under limited supervision while policies are refined.

Pakistan has between 15 to 20 million crypto users despite the absence of formal regulation and ranks as the third-largest freelance economy worldwide. These user demographics, combined with expanding internet penetration and a maturing fintech sector, are central to the government’s focus on blockchain and crypto as areas for structured growth. The government advocates for upskilling programs in blockchain and AI targeted at the youth population, aiming to position the country as a digital services exporter while generating employment opportunities in tech-aligned fields.

The educational outreach is expected to focus on blockchain engineering, DeFi infrastructure, and AI modeling, supporting domestic industry needs and cross-border service exports. The use of Bitcoin mining as a sink for electricity overproduction reflects a pivot in national policy toward monetizing underutilized infrastructure. Final site selections and partner announcements are pending completion of regional energy availability assessments and compliance with new technical standards.