Pakistan’s data centre industry eyes regional growth amid regulatory challenges

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LAHORE: Pakistan’s data center industry is growing rapidly, which has a strong potential to provide Central Asian countries for rapid contact and data collection services, which support their digital change and economic progress.

However, the sector faces special challenges, especially the direct competition of government agencies, which can damage the private sector investment and growth. Data centers from DWP Group Maneb Khwaja, head of the Business Unit, told a group of journalists on Monday that Pakistan’s cloud industry was developing rapidly, in which major telecommunication providers are increasing their presence in the sector.

“The country’s growing data center industry can provide rapid contact and data collection services to Central Asian countries, which increases their digital growth,” he said, adding that one of the major challenges is the direct involvement of the government, which is the risk of delaying the development of the private sector and the potential investors.

Khawaja noted, “Government agencies have some relaxation in the bidding process, making it difficult for private players to cope with, which can prevent investment in this high growth sector.” He pointed out that a single data center uses 15-20 megawatts of electricity and brings about $ 100 million in investment, along with the establishment of high-end technical jobs.

He emphasized that if the government supports the development of the data center by activating policies rather than competition, it can create a winning situation. “This sector has a huge potential in Pakistan. Investing investment will create job creation and broader economic development.”

Khawaja highlighted that the government’s focus on digital change and emerging public private partnership provides a valuable way to tackle the current challenges through regulatory support and investment in sustainable infrastructure.

He also emphasized that although preliminary measures and international cooperation are encouraging, the Green Data Centers will need a strong policy backing, infrastructure upgrade, and technology transfer to a nationwide pressure nationwide.

He advised, “Maximum performance LATA, data centers should be ideally located in northern Pakistan, where cool climate costs reduce cooling costs.” He added that regions like Gilgit -Baltistan (GB) offer ideal conditions, but site selection should also increase risks such as floods and earthquakes, historical stability, Internet connectivity, energy availability and skilled labor.

Globally, digitalization has promoted the increasing demand for data centers. “Every digital action data produces that must be secured – and data centers are the most reliable solution.”

Khawaja said that DWP recently set up two data centers in collaboration with the Higher Education Commission (HEC): one at Nade University in Karachi and the other at Lahore. “These centers meet HEC’s data storage needs and support research and development in educational institutions. Since such projects require investment, HEC has gained the lead. Both facilities are expanded to meet the needs of the sector from the coming years.”

He said that many existing data centers in Pakistan still still rely on traditional power sources and the old cooling system. “Although some new projects aim to include renewable energy, many legacy centers are left behind in green change.”

Data centers produce significant heat to maintain maximum temperature and use large quantities of energy. Make the most operational cost of energy. “Our newly -designed data centers focus on energy efficiency. Solar energy is a viable option, and with their strong air passages, offer promise opportunities for wind power integration.” He added that Pakistan’s renewable energy capacity is more than 60,000 MW. “The use of solar panels and long -term power purchase contracts (PPA) on site with wind farms can significantly reduce operational costs and reduce carbon emissions.”

In addition to technical support, Khawaja highlighted the company’s efforts to promote skilled workforce. “Skilled professionals are essential to successfully run data centers,” he said. We cooperate with educational institutions to train future data centers. Such a move is our partnership with Knowledge Stream, which provides youth training in this field. “