Hub Power Company (Hubco) has delayed its proposed data center project because 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 meeting.
Hubco management said 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
The company 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.
The comments highlight the infrastructure and cost challenges facing large-scale data center development, where reliable electricity supply and substantial upfront investment are important considerations.
However, there is no information on a revised launch date, estimated investment amount, or details of a final project structure.
Hubco’s comments come as the company evaluates the commercial feasibility of its proposed data center investment amid high power and technology costs and substantial infrastructure needs.
In recent months, several corporate players have entered Pakistan’s data center market or announced plans to invest in the sector. Gul Ahmed Energy Group’s Quantum Global Data Centre has announced plans for a major data center project in partnership with Huawei Pakistan, while Mari Energies-backed Sky47 has launched its AI-ready Karakoram-01 facility.
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.
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