Polygon Co-Founder Says Nepal Can Turn Hydropower into AI Exports

Nepal can become a regional hub for artificial intelligence and digital payments, Polygon co-founder Sandeep Nailwal has said, arguing that the country should turn its hydropower into computing power for export.

Nailwal, in Kathmandu on his first visit to Nepal, praised the government's reform-minded steps and business-friendly policies in a conversation with journalists. He met Finance Minister Swarnim Wagle and Nepal Rastra Bank Governor Bishwanath Poudel during the visit.

The rapid growth of artificial intelligence around the world needs huge computing power and green energy, Nailwal said, and Nepal is well placed to provide both. Instead of selling electricity at cheap rates, he said, Nepal can convert hydropower into AI computing and export it over the internet to international markets.

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He said such a computing industry could make a significant contribution to gross domestic product within two to five years, and lift national exports by 50 to 100 percent.

Data centres run on renewable energy could also give Nepali entrepreneurs and technology startups computing resources at concessional rates, Nailwal said, helping local innovation grow. He came to Nepal at the invitation of Pravesh Rijal, executive vice-president of the New York-based Cross River Bank.

On financial technology, Nailwal said modern payment systems could sharply cut the cost of remittances for Nepalis working abroad. Fees now range from 0.5 to 5 percent, he said, and regulated technology and stablecoin systems could bring them down to very low rates, so the savings go directly to families instead of middlemen.

On regulation, he said he respected local law and that the ban on highly speculative cryptocurrencies was appropriate, while suggesting Nepal adopt asset tokenisation.

Nailwal, who has family roots in Almora in the Indian state of Uttarakhand, also spoke of his personal closeness to Nepal. He said Polygon had helped provide 275,000 US dollars to the Prime Minister's Disaster Relief Fund for victims of the Bhotekoshi-Trishuli floods. He promised to return to Nepal soon with his family.