Pakistan’s AI Data Centre Milestone Raises Water Questions
Key Developments:
- Pakistan inaugurated Sky47 Karakoram-01 on July 24 as a major AI-ready data-centre project.
- The facility is designed for AI computing, cloud services, secure data hosting and sovereign data infrastructure.
- Researchers are increasingly highlighting water use as an environmental consideration for AI data centres, particularly in water-stressed regions.
ISLAMABAD — July 30, 2026: Pakistan has taken another step toward expanding its domestic digital infrastructure with the inauguration of Sky47 Karakoram-01, a purpose-built, AI-ready data centre launched in Islamabad on July 24.
Prime Minister Shehbaz Sharif and Field Marshal Syed Asim Munir attended the inauguration of the facility, which has been described as Pakistan’s largest AI-ready data centre. The project is intended to support artificial intelligence, cloud computing, secure data hosting and other digital services.
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The government has also highlighted the facility’s role in keeping sensitive information within Pakistan through sovereign cloud infrastructure, potentially reducing dependence on overseas hosting for certain workloads. The project brings together data-centre infrastructure, AI computing, cloud services and cybersecurity capabilities.
Prime Minister Shehbaz Sharif described Karakoram-01 as an “extraordinary and impressive project”, linking its rapid completion with Pakistan’s developing technological capabilities.
Industry material describes Karakoram-01 as an AI-ready facility capable of supporting high-performance computing and enterprise workloads. Reports also put its operational capacity at around 8.5 megawatts, although technical specifications should be distinguished from actual computing utilisation, which can vary over time.
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AI growth brings environmental questions
The expansion of AI infrastructure also raises questions beyond computing capacity. High-performance servers generate substantial heat and require cooling systems to maintain safe operating temperatures. Depending on the technology used, data centres can have direct and indirect water footprints.
A study published in Water Research in July 2026 estimated that the global water footprint of AI could reach 4.2 to 6.6 billion cubic metres annually by 2027. It also noted that around two-thirds of data centres built after 2022 are located in areas experiencing water stress.
The findings do not establish the water consumption of Karakoram-01 specifically. Rather, they highlight a wider infrastructure challenge that Pakistan will need to consider as AI computing capacity expands.
Pakistan already faces significant climate and water-management pressures. A recent study on drought risk in the country found that drought intensity and duration are increasing in several semi-arid and coastal regions, with implications for water management, agriculture and food security.
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Cooling technology could reduce water use
Water consumption is not inevitable for every data centre. Cooling designs differ considerably, and newer systems are being developed to reduce or virtually eliminate direct water consumption.
For example, NVIDIA’s newer AI infrastructure uses a closed-loop liquid-cooling design that the company says can bring cooling-related water consumption close to zero under suitable conditions. Such systems recirculate coolant rather than continuously relying on evaporative water loss.
This distinction is important when assessing the environmental footprint of AI infrastructure. The question is not simply whether a data centre uses liquid cooling, but which cooling technology it employs, how much water it withdraws or consumes, where it is located and how stressed the local water system is.
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A July 2026 analysis published by the Information Technology and Innovation Foundation similarly noted that technologies capable of bringing direct data-centre cooling water consumption close to zero are already available, although adoption involves additional costs and appropriate policy measures.
For Pakistan, the development of domestic AI capacity therefore presents both an opportunity and a planning challenge. Keeping sensitive data and computing workloads inside the country could strengthen digital infrastructure, while future expansion will require attention to electricity demand, cooling efficiency, water availability and environmental safeguards.
As AI adoption grows, transparent reporting of energy and water use could help policymakers and operators assess whether new digital infrastructure is being developed in a way that remains compatible with Pakistan’s resource constraints.
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