Hub Power Company (Hubco) just hit the brakes on its digital infrastructure plans. Recently, a Topline Securities research note revealed that Hubco officially delayed its proposed data center project. The research note, issued right after Hubco’s annual general meeting, points to severe financial and logistical roadblocks.
Why Hubco Delayed the Data Center Project
Hubco faces serious cost challenges. High electricity prices and soaring technology expenses forced the delay. Furthermore, the massive project demands significant infrastructure that currently offers uncertain financial returns.
Hubco management clearly stated their conditions for moving forward. Specifically, they believe the project’s viability relies heavily on location. They argue that developers must build data centers in dedicated zones. Additionally, these zones must guarantee access to multiple, reliable grid connections.
Refusing to Start Small
Interestingly, the company refuses to test the waters with smaller facilities. Most companies enter the sector with a standard 5-10 megawatt (MW) setup. However, Hubco indicated a strong preference for entering the market at a massive scale. They want an operational capacity of around 100 MW right out of the gate.
Consequently, this ambition highlights the immense upfront investment required for large-scale data center development. As of now, Hubco has completely withheld a revised launch date. Moreover, they shared no estimated investment figures or details regarding the final project structure.
Rivals Capitalize on the Delay
While Hubco evaluates its commercial feasibility, other corporate players are aggressively capturing Pakistan’s digital landscape. In recent months, several major names either launched operations or announced hefty investments.
For instance, Gul Ahmed Energy Group’s Quantum Global Data Centre announced a major project in partnership with Huawei Pakistan. Meanwhile, Mari Energies-backed Sky47 recently launched its AI-ready Karakoram-01 facility. Separately, Indus Cloud, Indus DC REIT, and United Bank Limited (UBL) successfully partnered to develop local data center and cloud infrastructure. Therefore, growing corporate interest continues to fuel Pakistan’s data center market, even as Hubco stalls on the sidelines.
