By Ansar ul Haq

Copyright dawn

Let’s be honest; when you think of a global hub for data centres, Pakistan isn’t the first place that comes to mind. This large country has over 240 million people, 116m internet users, 190m mobile connections, and more than 34m active gamers. It is also among the top five global markets for artificial intelligence (AI) adoption sentiment. All of these figures suggest that Pakistan has a growing digital presence, making it an excellent location for data centres.

International data centre markets are facing unprecedented restrictions due to grid-interconnection delays of three to 10 years, forcing hyperscalers to adopt “Bring Your Own Power” strategies or seek alternative, suitable locations. Pakistan’s abundant grid and installed captive power capacity, along with improved grid stability, give the country a significant advantage in this global market, besides meeting local demands. The government has set aside 2,000 megawatts for AI data centres along with Bitcoin mining, even though the peak demand is much lower than the installed base of more than 46,000 megawatts. This clearly indicates what is required.

It’s not about trying to overtake other countries at their own game. It would be smarter to compliment them. Hyperscalers and cloud providers need secondary hubs, places that can handle workloads closer to end users, at a lower cost, and without the network traffic jams that affect more established locations.

The data centres in Pakistan are not nearly as large as the hyperscale giants elsewhere, but they provide a good starting point. With new submarine cables coming, the country’s geography suddenly becomes much more significant. It can serve over a billion people across South Asia, Central Asia, and the Middle East with diverse and low-latency networks.

However, if investors don’t believe in our reliability, none of this will happen. The grid in Pakistan has had a hard past. It’s hard to forget the seasonal drops in hydropower, gas shortages, and the history of blackouts across the country. Officials say that new projects to modernise the grid and plans to bring back captive power plants are on the way. People will be watching closely to see if these changes happen.

The country could become a genuine contributor for global data centre needs if it can ensure reliable electricity and enhance its cyber defences

The next thing to think about is cybersecurity. The 2021 hack of the Federal Board of Revenue’s data centre was a painful reminder of how weak things can be. Pakistan ranks 50th on the International Telecommunication Union’s global index. Trust is just as important as cost for businesses around the world. If the country wants to be taken seriously, it needs to meet international standards, address digital vulnerabilities, fulfil global requirements, and demonstrate genuine strength.

The workforce is another question mark. Pakistan has one of the youngest populations in the world, but it lacks sufficient trained resources in cyber defence, cloud computing, and facilities management. A study by the World Economic Forum found that more than half of local businesses have trouble finding the workers they need. There are training programmes in place, but the pace needs to pick up for the industry’s growth.

However, the country has an advantage when it comes to cost. Building costs are lower than in Southeast Asia or the Gulf, and electricity costs about 12 cents per kilowatt-hour, which is competitive in the region. Consistent policies, renewable energy, tax breaks, and faster approvals in Special Technology Zones make the investment case stronger. Investors don’t want policies to change from one year to the next; they want long-term clarity.

Massive hyperscale campuses do not emerge overnight; however, Pakistan is becoming an important part of the global network, supporting workloads and serving regional users. Malaysia has attracted over $15 billion in commitments, Vietnam over $4bn, Indonesia over $12bn, including DAMAC’s $2.3bn Jakarta AI centre, and Bangladesh over $350 million in foreign investment with a 25pc annual growth rate. If Pakistan acts quickly, it can seize this opportunity, as hyperscalers are making decisions now and competitors are advancing. The opportunity is real but may not last long.

For a long time, Pakistan’s power sector was known for its power shortages. Now, it may finally be recognised for its surplus and for the choices the country makes with it. Pakistan has the opportunity to shift from a “potential” player in the global data economy to a genuine contributor if it can ensure reliable electricity, enhance its cyber defences, and equip its young workers with the right skills. The tide is rising, and the question is whether Pakistan will seize this moment by collaborating with the world’s large data centre hubs instead of competing with them.

The writer is an independent data centre consultant at 4sight Technologies.

Published in Dawn, The Business and Finance Weekly, September 29, 2025