Pakistan launches first locally hosted AI cloud to keep national data inside the country
Publishing date: 27 November 2025
Published in: Arab News
Pakistan this week launched its first locally hosted artificial intelligence cloud, a step officials say will allow sensitive national data to remain inside the country while giving businesses and public institutions access to powerful AI computing for the first time.
Pakistan, like many emerging markets, has relied on cloud servers located abroad for AI and machine-learning workloads, raising concerns over compliance with domestic regulations, financial data privacy, telecom metadata protections and broader national security. Around the world, countries are investing in “sovereign clouds” — cloud platforms physically hosted within national borders under local jurisdiction — to build digital autonomy and reduce reliance on foreign service providers. Pakistan’s new AI cloud aims to meet that need by keeping all AI training, analytics and data processing within its borders.
The cloud has been launched by Telenor Pakistan in collaboration with Data Vault Pakistan, whose high-density AI data center will host all workloads domestically.
“Today we are turning sovereign, high performance computer into a national capability,” Data Vault Pakistan CEO Mehwish Salman Ali said at the launch event on Wednesday.
“By weaving Data Vault Cloud into Telenor Pakistan’s enterprise portfolio, we are giving every organization a secure, local path from idea to inference — without sending data abroad. This is how Pakistan moves from consuming AI to producing it.”
According to the press release, the cloud enables organizations to train and deploy artificial intelligence models, process large datasets and run real-time applications without relying on offshore cloud regions. It covers sensitive data types including financial transactions, medical imaging, telecom data and government records, ensuring none of it leaves Pakistan.
AI systems require intensive computing power, especially for tasks such as training large language models, processing video analytics, powering generative AI systems or running real-time fraud detection. These workloads depend on GPUs — specialized processors far more powerful than standard chips. Pakistan has previously struggled to access such hardware because of global shortages and high import costs.
The new platform introduces GPU-as-a-Service, allowing organizations to rent NVIDIA-grade accelerators on demand rather than purchase expensive physical equipment. The release said this will enable a range of applications, from machine-learning pipelines and industrial automation to Urdu and regional-language AI models, computer-vision systems for public safety and advanced sector-specific analytics in health care and fintech.
Officials expect the cloud to support national priorities across multiple sectors. In finance, it can power fraud detection and anti-money laundering systems. In health care, it can assist with diagnostics and medical image processing. Manufacturers and logistics companies can use the platform for automation and predictive analytics, while public agencies can deploy secure local AI for citizen services and governance.
According to the release, the initiative aligns with regulations from the State Bank of Pakistan (SBP), the Pakistan Telecommunication Authority (PTA), health care data laws and emerging national AI safety frameworks. Hosting all data within the country, the statement said, strengthens cybersecurity, improves audit trails, enhances privacy and identity controls and bolsters digital trust.
With onshore GPU capacity now available in Pakistan, researchers and startups can develop their own AI systems rather than depend on offshore platforms.
The press release said the partnership “positions Pakistan alongside global markets investing in sovereign AI clouds to power next-generation digital transformation,” and gives the country the foundation “to move from consuming AI to producing it.”
