By Qudsia Bano

A rapid surge in global investment in artificial intelligence (AI) and data infrastructure is reshaping the digital economy, offering new growth opportunities for emerging technology markets such as Pakistan.

Recent estimates indicate that global spending on AI infrastructure is accelerating at an unprecedented pace. Big technology firms alone are projected to invest over $600 billion in AI-related infrastructure in 2026, up sharply from previous years, reflecting the central role of data centres, advanced chips, and cloud systems in driving the next phase of digital transformation.

At the same time, the broader AI data centre market is expanding rapidly, valued at over $340 billion in 2025 and projected to exceed $2 trillion by 2032, growing at an annual rate of more than 27%. This surge is being driven by the widespread adoption of generative AI, machine learning applications, and high-performance computing across industries.

The scale of investment is also reshaping global capital flows. In addition to Big Tech spending, total enterprise and hyperscale data centre investment is projected to reach as high as $645 billion in 2026, underscoring the transition of AI from an experimental technology to a core component of economic infrastructure.

For Pakistan, these developments coincide with a period of steady growth in the domestic IT sector. The country’s IT exports have shown strong momentum, reaching approximately $3.8 billion in the latest fiscal year, with policymakers targeting further expansion. The increasing integration of Pakistani freelancers and software firms into global markets positions the country to benefit from rising demand for digital and AI-enabled services.

Industry observers note that Pakistan is already taking initial steps to participate in the AI ecosystem. The establishment of a dedicated AI data centre in Karachi, equipped with advanced GPU infrastructure, marks an early move towards building domestic capacity in high-performance computing. Additionally, the country’s data centre market is expected to grow steadily, with projections indicating a compound annual growth rate of around 7.5 per cent through the end of the decade.

Experts suggest that the global AI boom could create new avenues for Pakistan, particularly in export-oriented digital services. Umair Javed of the Pakistan Institute of Development Economics notes that the shift towards AI-driven business models is increasing demand for software development, data processing, and remote technical services. He argues that countries with a young, tech-enabled workforce can integrate into these global value chains without the need for heavy industrial infrastructure.

Similarly, Ammar Jaffri, a former head of the National Technology Fund, emphasises that Pakistan’s comparative advantage lies in its human capital. He points out that with over a million freelancers and a growing base of IT graduates, the country has the potential to scale up its role in AI-related services, provided that investment in skills development and digital infrastructure is sustained.

Despite these opportunities, structural challenges remain. The global expansion of AI infrastructure has placed significant pressure on energy systems and supply chains, as data centres require substantial electricity and advanced hardware. For Pakistan, issues such as power reliability, regulatory uncertainty, and limited access to high-end computing resources could constrain growth if not addressed.

In this context, the ongoing surge in AI investment represents both an opportunity and a test for Pakistan. While the global expansion of digital infrastructure is creating new demand for IT and AI-enabled services, capturing these gains will depend on the country’s ability to strengthen its policy framework, invest in human capital, and ensure reliable digital and energy infrastructure.

As AI continues to redefine the global economy, Pakistan’s challenge will be to move beyond a purely service-oriented role and position itself as a competitive player in the broader digital ecosystem through sustained reforms and strategic investment.

Credit: INP-WealthPk