Hub Power Company Limited (HUBCO) has delayed its data centre plans due to high electricity and technology costs, substantial infrastructure requirements and uncertain returns, with management indicating that a small-scale project is currently not commercially viable.
The company is now considering entering the data centre business at a much larger scale of around 100 megawatts (MW), compared with its earlier proposal of 5–10 MW. Management believes that dedicated zones with multiple grid connections could improve project economics and reduce operational risks.
HUBCO Reconsiders Data Centre Investment Strategy
HUBCO’s revised approach reflects the significant investment required to establish and operate large-scale data centres. High power costs, technology requirements and infrastructure spending have made a smaller project difficult to justify commercially.
Management believes a capacity of around 100 MW could offer a more viable business model by allowing the company to operate at greater scale. Dedicated data centre zones with access to multiple grid connections could also help improve reliability and manage operational risks.
However, the project remains subject to commercial considerations, with uncertain returns continuing to delay investment decisions.
BYD Plant Expected to Begin Operations by Mid-December
HUBCO’s electric vehicle venture involving Chinese automaker BYD is approaching a major milestone, with the vehicle plant expected to begin operations within four to five weeks, by mid-December 2026.
Management is targeting an initial sales rate of 1,000 to 1,500 vehicles per month as production ramps up.
Manufacturing will initially rely on fully imported components, while the company plans to gradually increase local production. Its longer-term target is to achieve up to 80% localisation to reduce manufacturing costs and dependence on imports.
Additional vehicle models are expected to be introduced in phases, with a focus on market segments capable of generating meaningful sales volumes.
Changing Consumer Preferences Could Support Vehicle Demand
Management noted that younger buyers are increasingly willing to replace their vehicles sooner than the traditional five-to-ten-year ownership cycle.
This shift could create opportunities for competitively priced vehicles, particularly as consumers consider new models and technologies.
For BYD’s Pakistan operations, the planned localisation programme and phased introduction of additional models will be important to the company’s efforts to manage costs and build sales volumes over time.
HUBCO Reports Significant Receivables From Power Projects
As of June 30, 2026, HUBCO reported substantial receivables from several power-sector entities.
The outstanding amounts included:
- NEL: Rs6.58 billion
- Laraib: Rs8 billion
- CPHGC: Rs88 billion
- TEL: Rs17 billion
- ThalNova: Rs16 billion
The receivables highlight the scale of outstanding payments associated with the company’s power-sector investments. Their resolution remains relevant to cash flow management and the broader financial position of the businesses involved.
Aluminium Smelting Project Talks Continue
Discussions with the government regarding the proposed aluminium smelting project at HUBCO’s Hub plant are continuing, although management expects the process to take time.
The proposed project represents another potential industrial investment opportunity, but progress will depend on further discussions and the requirements for moving the initiative forward.
Meanwhile, work on fuel storage facilities has experienced slight delays because of the ongoing war, according to management.
NEPRA Tariffs for Thar Power Plants Remain Pending
The commercial operation date (COD) tariff for the Thar power plants remains pending with the National Electric Power Regulatory Authority (NEPRA).
Management noted that the regulator is still working on tariffs for earlier plants, contributing to the delay in finalising the relevant tariff.
The pending decision remains an important issue for the company’s power-sector operations, alongside receivables and progress on other proposed investments.