Sindh, Chinese firm agree to set up AI-ready data centre in Karachi

Sindh, Chinese firm agree to set up AI-ready data centre in Karachi

KARACHI: The Sindh government and CMPak, the parent company of Zong, on Thursday agreed to collaborate on the establishment of an “AI-ready Tier-III” data centre in Karachi under a public-private partnership. The understanding was reached during a meeting at CM House between Chief Minister Syed Murad Ali Shah and CMPak Chairman and CEO Huo Junli. A CM House spokesperson said that the CMPak delegation briefed the chief minister that a Tier-III AI-ready data centre required uninterrupted and significantly higher electricity loads than conventional telecom facilities. To ensure reliability and scalability, the company sought provincial support for industrial power tariff, upgraded grid capacity, dual power feeds for redundancy and priority status for the project. CMPak seeks CM Murad’s help for industrial power tariff, enhanced grid capacity for its Tier-III data facility The chief minister assured the company of full provincial support and directed relevant departments to examine CMPak’s proposals, including conversion of electricity tariffs from commercial to industrial category, enhancement of grid capacity, provision of dual power feeds, and fast-track facilitation for the project. He said that the provincial government was ready to work with CMPak in partnership for the development of an AI-ready Tier-III data centre. “Such projects are essential for building Pakistan’s digital future and strengthening our technological sovereignty,” he added. Mr Shah said that the province welcomed strategic investments that enhance technological capabilities, create high-value employment, and position Karachi as a regional hub for cloud computing, artificial intelligence, data hosting and digital innovation. He said that digital infrastructure was a critical pillar of economic development, innovation and competitiveness. “Projects such as Zong’s AI-ready data centre will not only support the growing digital economy but also create new opportunities for innovation, entrepreneurship and employment,” he added. The chief minister said that Karachi was rapidly emerging as a preferred destination for technology and data infrastructure investments due to its strategic location, connectivity and growing demand for digital services. He said that the future economy would be driven by data, artificial intelligence and cloud technologies. “The Sindh government will extend all possible support within its mandate to facilitate this landmark project,” he said. CMPak officials informed the meeting that the company, a wholly owned subsidiary of China Mobile Communications Corporation, served more than 55 million subscribers in Pakistan and had invested over $3 billion in the country. It has also launched 5G services in more than 20 cities. Mr Huo said the Karachi data centre would become a cornerstone of the country’s digital ecosystem by enabling secure local data hosting, advanced cloud services, AI infrastructure and enterprise digital transformation. He said that it would play a pivotal role in supporting Pakistan’s digital future, providing secure and reliable infrastructure for businesses, government institutions and emerging technologies. The meeting was attended by Special Assistant on IT Ali Rashid, and Energy Secretary Shuhab Ansari. From CMPak, Board Member and Chief Regulatory Officer Kamran Ali, Director Data Centre Construction Syed Ahmed Hassan, and other senior officials were present. Published in Dawn, August 21st, 2026