Muhammad Luqman

Pakistan's data center and cloud computing industry is rapidly growing, driven by increasing internet penetration, a burgeoning IT sector, and the rise of cloud computing. This growth positions the country to become a regional hub for digital infrastructure, providing high-speed connectivity and colocation services to neighboring Central Asian nations.

The number of data centers in Pakistan has grown to 22 in just a few years. Of these, 10 are located in Karachi, 8 in Lahore and 4 in the capital, Islamabad. “Pakistan is undergoing a swift digital shift, creating a substantial demand for reliable, secure, and scalable data centre infrastructure,” said Faisal Yousaf, Chairman of Punjab Information Technology Board (PITB).

In an interview with WealthPK, the PITB Chairman said that this evolution was being driven by rapid digitalization, increasing demands from both public and private sectors, regulatory pressures, and regional opportunities. “Regulatory requirements, particularly those mandating local data residency in sectors like banking, telecom, and healthcare, are reshaping the data landscape in Pakistan,” Faisal Yousaf said.

He said that Punjab province, as a digital frontrunner in Pakistan, was making considerable strides in data infrastructure development. He said that PITB had established Punjab’s first Tier-III compliant government data center, which hosts numerous mission-critical applications and shared digital services for provincial departments. Faisal Yousaf said that government initiatives such as the Digital Pakistan Policy are fueling the need for robust data center ecosystems.

The increasing digitization of services like e-Governance, Smart Cities, and Digital Identity Systems further accelerates this momentum. Faisal Yousaf said that the PITB had also launched public cloud services to offer scalable, cost-effective, and secure digital infrastructure to government entities. It had also developed IT infrastructure, disaster recovery, and cybersecurity standards to ensure resilience across provincial systems.

According to cloud computing experts, data centers generate significant heat and consume large amounts of energy to maintain optimal temperatures -- making energy the largest operational cost. “For optimal efficiency, data centers should ideally be located in northern Pakistan, where the cooler climate reduces cooling costs,” said Muneeb Khawaja, Business Unit Head of a data center.

He said that a single data center consumes 15-20 megawatts of power and brings nearly $100 million in investment, along with the creation of high-end technical jobs. However, he regretted that several existing data centers in Pakistan still relied on traditional power sources and outdated cooling systems. “While some newer projects aim to incorporate renewable energy, many legacy centers lag behind in green transformation,” Muneeb Khawaja said.

Pakistan’s technology companies believe that there should be self-sufficiency in the cloud computing sector so that the dependence on AWS and Microsoft could be reduced. “There is a need for more and more data centers in Pakistan. By having our own clouds, we can save a lot of foreign exchange,” said Salimullah Ghori, the Chief Executive Officer of Netsol Technologies. Talking to WealthPK, he said that there was a need for dozens of tier III and tier IV data centers in a bid to become internationally competitive.

“For this purpose, serious investment is required on the part of both public and private sectors,” Salimullah Ghori said. He said that the government’s recent plans to allocate surplus 2000 megawatt of power for the data centers and bitcoin mining would go a long way in the promotion of this emerging industry.

Credit: INP-WealthPk