At the recent Indus AI Week in Islamabad, Prime Minister Shehbaz Sharif announced an ambitious plan to invest $1 billion in AI by 2030.
The initiative includes introducing an AI curriculum in all federal schools, awarding over 1,000 fully funded PhD scholarships in AI by 2030 to build world-class research capacity, and training one million non-IT professionals in AI skills.
This is a welcome and timely initiative. As previously highlighted in these pages (‘AI and higher education’, The News, August 20, 2025), Pakistan must urgently build human capital and infrastructure in AI to compete globally. The government deserves credit for recognising that AI is not optional but is foundational to economic survival.
We are witnessing an era of unprecedented growth in artificial intelligence (AI). The global AI market is projected to exceed $800 billion within the next few years (‘The race for AI supremacy’, The News, February 20, 2025; ‘AI is the new power’, The News, March 21, 2025), unlocking transformative potential across industry, governance, healthcare, education and defence.
The global AI race, however, is no longer merely economic. It has become a high-stakes geopolitical competition among superpowers. The prevailing belief in many strategic circles is simple: whoever leads in AI will shape the future balance of power. Others warn that the unchecked AI race could accelerate mass unemployment, destabilise societies and even pose existential risks to humanity.
The next frontier to capture is artificial general intelligence (AGI), envisioned to match or exceed human cognitive abilities across all intellectual tasks. Many experts predict that within a year, AGI could perform virtually any computer-based task more efficiently and accurately than humans. AGI could replace entire segments of entry-level knowledge workers with a high probability.
The scale of investment reflects the seriousness of this race. Technology giants are pouring hundreds of billions of dollars into AI research and infrastructure, hiring the world’s top scientists and developers at unprecedented salaries. With quantum computing on the horizon, AI’s acceleration appears inevitable.
Upon assuming office, President Donald Trump announced a $500 billion initiative to build AI infrastructure to secure American technological supremacy. Under the Stargate programme, the US is constructing more than 20 massive AI data centres, each spanning roughly half a million square feet, creating over 100,000 jobs. Stargate alone envisions 5–10 gigawatts (GW) of AI compute capacity across multiple campuses, with investments potentially reaching $500 billion by 2029. NVIDIA has separately committed up to $100 billion to expand AI compute infrastructure linked to OpenAI, one of the largest private technology investments in history.
Not to be left behind, China is also progressing rapidly and may already be ahead in certain AI domains. Estimates suggest China’s AI investments exceeded $125 billion in 2025 alone, spanning research, semiconductor development, infrastructure and autonomous systems.
While Pakistan procrastinated, India moved ahead. Over the past decade, India invested approximately $11 billion in AI and built strong policy frameworks, digital infrastructure and talent pipelines. The outcomes are now paying off: global technology giants are committing tens of billions of dollars to India. Google has announced plans for a $15 billion AI hub focused on data centers and digital infrastructure. Amazon intends to invest more than $35 billion by 2030, while Microsoft has committed $17.5 billion for AI and cloud expansion.
India is also hosting the 2026 AI Summit in Feb 2026, in which heads of 20 countries and delegations from 45 countries, including CEOs of top IT companies like Google, OpenAI, NVIDIA and Microsoft, will attend. These investments and relationships have built on India’s skilled workforce, stable regulatory environment and supportive policies.
AI dominance also requires physical infrastructure. Advanced AI systems run on massive, high-density data centres far more powerful than conventional ones. These gigawatt-class campuses, often Tier IV for maximum reliability, demand low-cost electricity, abundant water for cooling, advanced grid connectivity and cutting-edge sustainability solutions. Building such facilities can cost upwards of $20 billion per GW.
Across the US, mega AI campuses worth hundreds of billions of dollars are under development. Microsoft is constructing what it calls the world’s most powerful AI data centre, equipped with hundreds of thousands of GPUs interconnected by ultra-fast fibre networks. Meta’s Hyperion AI campus spans more than 2,000 acres and aims to scale to 2 GW capacity, with projected investments rising toward $30–50 billion. Similar hyperscale projects are emerging in the Middle East and Asia, including the UAE Stargate campus of 200MW in Abu Dhabi, expected to come online in 2026.
Pakistan’s northern regions offer a strategic opportunity. With abundant hydropower potential, cooler climates suitable for natural cooling and access to renewable energy, these areas could attract foreign investment in AI data centres. Competitive electricity pricing and climate advantages could significantly reduce operating costs.
At a minimum, Pakistan should establish or facilitate a sovereign AI data centre of at least 20MW capacity. Such a facility would enhance national security, support local AI startups, reduce reliance on foreign cloud providers, and provide a foundation for advanced research and government digital services.
However, infrastructure alone is insufficient. Regulatory reform, tax incentives and ease of doing business are essential. Universities must modernise curricula. Research must be commercialised through university and privately owned incubators. Brain drain must be addressed by creating opportunities at home.
Pakistan has finally taken the first step. The announced $1 billion commitment signals intent, which must now translate into swift, strategic execution at scale.
The future of Pakistan will depend on whether we can build a skilled AI workforce, modern digital infrastructure and globally competitive research ecosystems. With vision, policy coherence and sustained investment, Pakistan can secure its future and a meaningful share of the global AI economy.
The writer is a former senator and former chairperson of the HEC.
