MCHAM Nepal's 'Hydro-to-Data' proposal has shown the potential to attract AI infrastructure and crypto mining to Nepal using cheap, renewable energy.
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A delegation from the American Chamber of Commerce in Nepal (AmCham Nepal) held various rounds of discussions with US government agencies and multilateral organizations in Washington this week.
The discussions focused on developing Nepal’s digital infrastructure based on clean energy. AmCham Nepal has proposed establishing Nepal as a destination for data centers, artificial intelligence (AI) computing, and cryptocurrency mining.
The delegation, including AmCham Nepal Founding President Ajit Bikram Shah, Mogha Energy CEO Samrath Mogha, and AmCham Executive Director Amirraj Thapa, met with officials from the US Departments of State, Commerce, and Energy, as well as the US Trade and Development Agency and the US International Development Finance Corporation (DFC).
The group’s proposal, dubbed the ‘Hydro-to-Data’ strategy, says Nepal’s growing electricity generation could attract energy-intensive industries looking for cheap and renewable energy—especially AI infrastructure companies and crypto mining operations. Such industries are also facing increasing regulatory and environmental pressures in Western countries.
According to the delegation, the US Trade and Development Agency has shown interest in assisting with feasibility studies for such projects. Similarly, the DFC discussed financing mechanisms for Nepali enterprises in the digital and energy sectors. However, no financial commitments have been announced.
The delegation discussed the upcoming ‘US-Nepal Energy Road Show’ with Mark W. Menezes of the US Energy Association. The delegation also said that the aim of which is to connect Nepali hydropower projects with international investors. Similarly, a meeting was also held with Atul Keshap, Senior Vice President and Ambassador for South Asia of the US Chamber of Commerce. Regulatory reforms and project structures were also discussed with representatives of the World Bank and the Asian Development Bank.
On Capitol Hill, the delegation urged the restoration of the Nepal-centric Congressional Caucus.
Through this visit, MICHAM Nepal urged the Nepali government to formulate clear policies and reduce regulatory barriers in the AI, crypto, and data infrastructure sectors. Such sectors, the organization says, can utilize the surplus electricity generation that Nepal is currently struggling to export.
The Millennium Challenge Corporation (MCC) transmission infrastructure project currently underway will also support energy exports and the development of the domestic digital economy in the future, MICHAM Nepal says.
