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Sindh Government, CMPak Partner to Build Landmark AI-Ready Tier-III Data Centre in Karachi

Aug 21, 2026 | Economy, Public Policy

KARACHI: The Sindh government and CMPak (Zong), a fully owned subsidiary of China Mobile Communications Corporation, on Thursday agreed to collaborate on the establishment of an advanced “AI-ready Tier-III” data center in Karachi under a public-private partnership framework.

A strategic agreement was signed in a high-level meeting at CM House between Sindh Chief Minister Syed Murad Ali Shah and a CMPak delegation led by Chairman and CEO Huo Junli. The facility is expected to serve as a key catalyst for Pakistan’s digital economy by facilitating local data hosting, cloud computing and enterprise artificial intelligence transformation.

High Power Infrastructure Needs & Provincial Guarantees

CMPak executives pointed out that an AI-ready Tier-III data center needs substantially larger, more consistent electrical loads than regular telecom facilities during the briefing. The telecom giant wanted certain provincial policy support to facilitate operations.

In response, Chief Minister Murad Ali Shah directed the provincial departments to expedite the requests of CMPak to make sure that the project is viable:

  • Conversion of the plant’s electricity tariff from commercial to lower industrial rates.
  • Improving local grid capacity and providing dual power feeds to avoid operational downtime.
  • The data center will be accorded official priority status for fast clearances on administrative and regulatory fronts.

Economic Impact & Technological Capabilities

CMPak, which has invested over $3 billion to date and operates 5G in over 20 cities in Pakistan serving over 55 million subscribers, said the data center will greatly enhance the nation’s digital sovereignty.

Key Feature Strategic Objective Socio-Economic Value
AI & Cloud Infrastructure Advanced localized hosting for AI & enterprise workloads Positions Karachi as a regional digital hub
Tier-III Redundancy High-load power supply with dual feeds Ensures 99.982% uptime for critical government and corporate data
Public-Private Framework Joint execution between Sindh Govt and CMPak Attracts foreign tech capital and generates high-value tech employment
“Such projects are essential for building Pakistan’s digital future and strengthening our technological sovereignty. The future economy will be driven by data, artificial intelligence, and cloud technologies.”
Syed Murad Ali Shah, Chief Minister of Sindh
The meeting was attended by Special Assistant to CM on IT Ali Rashid, Energy Secretary Shuhab Ansari, CMPak Chief Regulatory Officer Kamran Ali, and Director Data Center Construction Syed Ahmed Hassan.