The Following is an extract from Srimad Bhagavatham as renditioned by Smt. Kamala Subramaniam.

Hiranyakashipu had but one desire.  He wanted to be immortal.  He wanted to be the sole Lord of all the three worlds.  He decided to perform Tapas.  With the power of his Tapas, which would be intense, he thought of pleasing Brahma so that his desires will be granted by Him.  Hiranya went to the Mandara mountain and with intense concentration he performed Tapas for years together.  When he was absorbed in his Tapas,  the Devas came back to their abode, abandoning their disguises.  As days passed, the Tapas of Hiranya became so intense that he began to glow like the Sun at noon.  Every lock on his hair was spitting fire.   The entire world was feeling the heat and it looked as though the world would be burnt to ashes.  The rivers and the sea became turbulent.  The Earth quaked and the mountains through up fire.  Stars fell to the Earth and the quarters began to burn because of the Tapas of Hiranyakashipu.

The Devas, as usual,  went to Brahma and said: "My Lord, it is time you went to your Bhaktha and grant him whatever he desires.  We are unable to bear the heat emanating from his Tapas and its glory.  As for what he desires, it is not as though you do not know it.  Still we give you a word of warning.  Hiranya seems to have said: "Brahma with the power of his Tapas, was once able to create the universe and also his own abode, the Satyaloka which is far superior to any other abode of the Devas.  I know that if I try hard enough, I will be able to become Brahma.  I will then be able to take the Satyaloka for myself.  I will create a new world where the laws will all be changed:  why they will be abolished altogether.  What was all these days considered to be Sin,  will thereafter, be Holy.  The Asuras will become the Devas and as for the Devas,  they will be Asuras when I am Brahma."  That is the purpose for which Hiranya is performing Tapas so intensely.  Please be sure to remember all this my Lord, when you go to him and grant him his boons."

Brahma listened to their words and went to the cave where Hiranya was lost in his Tapas.  Brahma could not see him at first.  So completely had the weeds and the anthills covered him. Brahma went to him and said:  "My child, I am pleased with the Tapas which has never been performed before with so much devotion and such concentration.  I am very pleased with you.  Ask anything of me and I will grant it."

Brahma who was so overcome with joy, at the devotion of his Bhaktha must evidently have forgotten the words of warning spoken by the Devas.  Hiranya fell at the feet of Brahma, who sprinkled water on him from his Kamandalu.  At once the Asura regained all the strength, freshness and beauty of form which he had neglected all these years.  He now glowed like molten gold.  He spoke with a faltering voice and with tears in his eyes.  He was overcome with joy at the sight of Brahma.  He spoke words of praise and the said:  "I want one boon from you: only one.  I had several other desires, but the moment i saw you in person, I know that they have been granted even without my asking.  The only boon I want is: "I WANT TO BE IMMORTAL."

Acquiring power through penance is pointer in the Puranas to one of the pathways to attaining Moksha. Hiranyakashipu, with this intellect, understood the power behind penance, but then decided to misuse the fruits of penance for a wrong purpose.

This is very much akin to nuclear power being misused by politicians for attaining dominance and power over the Earth. 

Hiranyakashipu does perform intense penance and manages to invoke the blessings of Brahma.  But he does not have the capability or intelligence to use this power to attain a higher goal of detachment of the intellect from the physical world and thereby attain Moksham. 

He does not realize that the ability to invoke the supreme is the vehicle to be used to attain a higher objective and should not be used to get more entangled in the world of Maya.

Hiranya saw more meaning in worldly happiness through  dominance and elimination of threatsof Earth rather than 

Hiranya's state of mind is also exactly  the human condition.  We pray only to attain happiness and satisfaction through worldly attainments.

We do not realise that the powers that we have already been bestowed with - Perception and Intelligence are not meant to further worldly attainments. These are meant to be used to attain a higher state of existence.