Coal-fired power plants: Pakistan promises 2000 MW for AI and Bitcoin mining
Pakistan wants to attract the crypto industry and AI data centers by providing electricity. Initially, this is supplied by underutilized coal-fired power plants.
Transportation of coal in Pakistan
(Image: Haani Pasha/Shutterstock.com)
The Pakistani government has announced that it will provide 2000 MW of electricity for cryptocurrency mining and AI data centers, with further capacity to be added. This was reported by the daily newspaper Dawn, calling it a “groundbreaking step towards transforming Pakistan into a world leader in digital innovation”. According to Bloomberg, coal-fired power plants, some of which have only been generating electricity at 15 percent of capacity recently, are to be restarted initially. However, according to Dawn, the long-term goal is to also use renewable energies to expand the initiative.
Bitcoin and AI “known for high-energy consumption”
According to the newspaper, the country's government has described the move as the beginning of a broader strategy to monetize surplus energy, create high-tech jobs and attract billions in foreign investment. “Pakistan's underutilized power generation capacity will now be converted into a high-value digital asset,” the Ministry of Finance promises. AI data centers and crypto mining are “the ideal use case” because they are known for their constant and high-energy consumption. The amount of electricity now promised is roughly equivalent to that provided by one of the largest power plants in Germany.
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According to the reports, Pakistan already has several dozen million users of cryptocurrency, while the country only narrowly escaped a payment default two years ago. At the same time, the overcapacity in power generation is probably also due to the recent sharp rise in electricity prices, which have caused great frustration considering the unreliable power grid. This is reported by CNN in an article on the massive boom in photovoltaics that Pakistan has been experiencing for several years. Driven by private individuals, the installation of small solar panels has exploded there. In terms of the speed and extent of expansion, there is nothing comparable worldwide, CNN quotes an expert.
(mho)
