With the wave of data development and artificial intelligence technology, the demand for energy for data processing centers and cryptocurrency mining is increasing rapidly. Notably, many countries are turning to a new strategy to utilize electricity to serve these power-hungry industries. This is not only a solution to effectively exploit existing energy infrastructure, but also a strategic step in the effort to promote digital transformation and economic development. Pakistan is one of the first countries to publicly announce this direction.
Allocation of electricity to Bitcoin mining in Pakistan directly addresses the country’s expensive energy paradox: excess generation capacity but high electricity prices. Pakistan currently has 46.2 GW of installed capacity, but electricity consumption is falling, with industrial use down 11%.
This created a financial vicious circle as capacity payments to power producers increased by 46% to PKR 1.9 trillion, even though plants were not operating at full capacity.
This power allocation strategy builds on Pakistan’s strong position in the cryptocurrency space, where the country ranks third globally in the Global Cryptocurrency Adoption Index.
Pakistan’s approach reflects a global effort to align cryptocurrency mining with the goals of sustainable energy development and power system optimization.
In developing countries, this is an opportunity to exploit existing energy infrastructure optimally, while opening the door to access to high technology and investment capital. Countries such as Ethiopia, Pakistan or Oman do not possess a strong technological base like the US or China, but by providing cheap and stable electricity, they are shaping themselves as ideal destinations for global digital industries.
Finance Minister Muhammad Aurangzeb stated that this strategic allocation marks a pivotal moment in Pakistan’s digital transformation journey, unlocking economic potential by turning surplus energy into innovation, investment and international revenue.
“Pakistan is uniquely positioned — both geographically and economically — to become a global data hub. As a digital bridge between Asia, Europe and the Middle East, Pakistan offers the most strategic location in the world for data flows and digital infrastructure.”
(Finance Minister Muhammad Aurangze)
Source: https://baogialai.com.vn/pakistan-bien-dien-nang-tro-thanh-tai-san-chien-luoc-post325012.html
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