Hubco Delays Data Center Project

Hub Power Firm (Hubco) has delayed its proposed data center project as of high electricity and technology costs, significant infrastructure requirements, and uncertain financial returns, according to a Topline Securities research note issued after the company's annual general session.

Key points

• Hubco management remarked the project's viability could improve if data centers were developed in dedicated zones with access to multiple grid connections.
• The comments highlight the infrastructure and cost challenges facing large-scale data center development, where reliable electricity supply and substantial upfront investment are significant considerations.
• Nevertheless, there is no information on a revised launch date, estimated investment amount, or details of a final project structure.
• In recent months, a number of corporate players have entered Pakistan's data center market or unveiled intends to invest in the sector.
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Hubco management remarked the project's viability could improve if data centers were developed in dedicated zones with access to multiple grid connections. HUBCO Likes Bigger Data Centers.

Meanwhile, the firm indicated a preference for entering the market at a larger scale, with capacity of around 100 megawatts (MW), rather than starting with smaller facilities of 5-10 MW. Pakistan's GDP Expansion Revised Down to 3.65%.

For context, the comments highlight the infrastructure and cost challenges facing large-scale data center development, where reliable electricity supply and substantial upfront investment are significant considerations.

Hubco's comments come as the firm evaluates the commercial feasibility of its proposed data center investment against the backdrop of high power and technology costs and substantial infrastructure needs.

In recent months, a number of corporate players have entered Pakistan's data center market or unveiled intends to invest in the sector. While Mari Energies-backed Sky47 has rolled out its AI-ready Karakoram-01 facility, gul Ahmed Energy Group's Quantum Global Data Centre has confirmed intends for a major data center project in partnership with Huawei Pakistan.

Separately, Indus Cloud, Indus DC REIT and United Bank Limited have partnered to develop local data center and cloud infrastructure, reflecting growing corporate interest in Pakistan's digital infrastructure market. Stay Connected with ProPakistani.

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In short, hubco Delays Data Center Project is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.