Features - The Times Of Central Asia

Viewing results 7 - 12 of 2525

Data Center Valley

Can Kazakhstan Power Its AI Ambitions?

For now, it is only a vast construction site lost in the steppe, a few kilometers from Ekibastuz, a mining city in northern Kazakhstan. Cranes move behind fences in the shadow of a Soviet-era power station. It is hard to imagine that, from 2027, this site is supposed to become the first piece of a giant artificial intelligence campus. Known as Data Center Valley, the project is eventually expected to reach one gigawatt. At full capacity, it could consume as much as 8.8 terawatt-hours a year, Kazakh media Qyzyq estimated, around 7% of Kazakhstan’s current electricity generation. Development will be gradual, with an initial 50-megawatt facility scheduled to enter service in June 2027. U.S.-based Firebird.ai and state-controlled Kazakhtelecom are leading the industrial project. Yet the futuristic bet collides with a more prosaic reality. “Economic and industrial growth in Kazakhstan is currently outpacing the rate of commissioning and modernization of generating capacity,” the Ministry of Energy acknowledged in a response to The Times of Central Asia. In 2025, the gap between domestic generation and consumption reached 1.5 terawatt-hours, forcing the country to import electricity, mainly from Russia. President Kassym-Jomart Tokayev has acknowledged the scale of the challenge. At the National Kurultai in January, he said data centers consume electricity on a scale comparable to metallurgical plants and that Kazakhstan’s existing generation was “clearly insufficient” for its development plans. He called energy self-sufficiency a key state priority and ordered an expansion of generating capacity, including new coal-fired power. How, then, can Kazakhstan power a campus that could consume almost six times that shortfall? More strikingly, when the government prepared its 2026 electricity forecast, neither Data Center Valley nor any other AI or data-center project was included. The ministry says they will enter its calculations from 2027 - the same year the first facility is due to start operating. [caption id="attachment_54529" align="aligncenter" width="1774"] The mine of Bogatyr is expanding to increase production[/caption] From Coal to Algorithms In Ekibastuz, the answer comes down to one word: coal. “In essence, Kazakhstan is turning Ekibastuz coal into export digital revenue,” Kazakhtelecom chairman Bagdat Musin has said. Electricity generated locally would be converted into computing services sold internationally. No major named customer contract has been announced, although Firebird says it holds guaranteed service contracts with global players. Amazon and G42 have been named as companies entering the ecosystem, while Kazakhstan has also held talks with Microsoft and OpenAI. The landscape appears built for that ambition. Nearby lies Bogatyr, one of the world’s largest open-pit coal mines. From the observation deck, terraces of rock descend 300 meters into the earth. Excavators and haul trucks look like toys at the bottom. “Ekibastuz is a very smart choice: energy is abundant and cheap here, while proximity limits transmission losses between the power station and the consumer,” Yevgeny Masternak, CEO of mine operator Bogatyr Komir, told TCA. To keep pace with anticipated demand, the company plans to raise annual production from 42 million tonnes in 2024 to more than 56 million...

Podcast

Pannier and Hillard’s Spotlight on Central Asia: New Episode Out Now

As Managing Editor of The Times of Central Asia, I’m delighted that, in partnership with the Oxus Society for Central Asian Affairs, we are the home of the Spotlight on Central Asia podcast. Chaired by seasoned broadcasters Bruce Pannier of RFE/RL’s long-running Majlis podcast and Michael Hillard of The Red Line, each fortnightly instalment will take you on a deep dive into the latest news, developments, security issues, and social trends across an increasingly pivotal region. This week, the team is covering one of Central Asia's leaders openly calling on Vladimir Putin to bring the war in Ukraine to an end, Russia moving to tear up a number of its military agreements with two Central Asian states, upcoming elections in Kazakhstan and Kyrgyzstan, a deepening crackdown on opposition media and journalists in Kazakhstan, and a growing wave of fighting in northern Afghanistan that is already beginning to spill across the border into neighbouring Tajikistan. Before turning to our main story this week, where we look back at the decade since Islam Karimov's death and Shavkat Mirziyoyev's rise to power, and ask just how much Uzbekistan has changed over the ten years since. Special guest: Central Asia journalist and author of Silk Mirage: Through the Looking Glass in Uzbekistan, Joanna Lillis.

Bilateral Cooperation

Uzbekistan and Azerbaijan Target $1 Billion in Trade as Investment and Transit Links Expand

Uzbekistan and Azerbaijan have set a target of increasing bilateral trade to $1 billion by 2030, as economic ties expand from a relatively low base into vehicle manufacturing, oil and gas, investment, and transport across the Caspian Sea. Azerbaijani President Ilham Aliyev’s state visit to Uzbekistan on August 23–24 added new projects to that list. The two presidents signed a Treaty on Eternal Friendship and a program aimed at increasing bilateral trade to $1 billion by 2030. Political relations, meanwhile, have been moving faster than economic ties. In 2023, the two countries established the Supreme Interstate Council, and a year later they signed a Treaty on Allied Relations. The latest trip was Aliyev’s third state visit to Uzbekistan in five years and his seventh visit overall. Aliyev said ahead of his trip to Tashkent that bilateral trade more than tripled in 2025 to reach $795 million. Uzbekistan’s Center for Economic Research and Reforms, however, reported a much lower total of $307.3 million for the same year. Neither side has explained the discrepancy, which may reflect different definitions of trade. Sustaining growth toward the $1 billion target will require broader trade and more joint production, including goods aimed at markets beyond the two countries. From Trade to Investment The Azerbaijan-Uzbekistan Investment Company is intended to help turn some of these plans into operating businesses. Established in 2023 with $500 million in capital, the company finances projects in both countries. Some areas of cooperation have already reached the production stage. Azerbaijan’s Azermash CP works with Uzbek manufacturers to produce Chevrolet and Isuzu vehicles in Azerbaijan. By July, more than 10,700 Chevrolet vehicles and 275 Isuzu buses had been produced. More than 130 commercial entities with Uzbek investment are registered in Azerbaijan. During the latest visit, the two sides opened a gypsum plant. They also laid foundations for five SOCAR filling stations and a silver-ore enrichment plant. For Baku, the interest in Uzbekistan is understandable. With a population of more than 38 million, Uzbekistan is Central Asia’s most populous country. The Uzbek economy is growing rapidly, while the authorities are opening more sectors to private and foreign capital. For Azerbaijani companies, this offers access to a market considerably larger than their own as well as a foothold in Central Asia. For Tashkent, Azerbaijan offers investment and expertise in the oil and gas sector. SOCAR, the Azerbaijani state oil company, has been operating in Uzbekistan for years. A joint venture between Uzbekistan’s O‘ZLITINEFTGAZ and the Azerbaijani company’s research institute has been operating since 2016. Cooperation is now gradually moving from engineering services toward much larger exploration and potential production projects. The main project is on the Ustyurt Plateau in western Uzbekistan. BP joined the project in May 2026 with a 40% stake, while SOCAR, which is the operator, and Uzbekneftegaz each hold 30%. Total investment could reach around $2 billion if commercially viable reserves are found and the project proceeds to development. As previously reported by The Times of Central Asia, the project envisages extensive seismic...

Kurultai Election

Reform and Moderate Conservatism: Reading Kazakhstan’s Kurultai Vote

Preliminary results have been announced in Kazakhstan’s election to its new unicameral parliament, the Kurultai. Notably, they differ little from the first exit poll released the previous day. The outcome itself was largely predictable: the newly created ruling Adilet party won by a wide margin, while two parties failed to clear the threshold for representation in the Kurultai. In recent years, Kazakhstan has gone through a series of major electoral campaigns that have, quite literally, revived voters’ interest in exercising their basic civic rights. Along the way, the campaigns have developed a tradition of sorts, combining Soviet-era methods of drawing people to polling stations with elements of the political spectacle more characteristic of Western countries, particularly the United States. [caption id="attachment_54573" align="aligncenter" width="1600"] Image: TCA[/caption] In Soviet times, voters were enticed to polling stations with scarce goods, from candy to sausage. On election day, food fairs appeared near polling stations in Almaty: people could cast their ballots and then eat traditional Kazakh dishes, drink hot tea with milk, and listen to music. Since elections in Kazakhstan are increasingly promoted as family occasions, where parents can pass an important civic experience on to the younger generation, activities were also organized for children near polling stations. Among other things, they could play asyq, a traditional game familiar to generations of Kazakhstanis. [caption id="attachment_54574" align="aligncenter" width="1600"] Image: TCA[/caption] As for the show-like elements, some voters arrived dressed as various characters, from Kazakh batyrs, or traditional warriors, to the American superhero Spider-Man. [caption id="attachment_54568" align="alignnone" width="300"] @Regional Communications Service[/caption] [caption id="attachment_54569" align="alignnone" width="300"] @Regional Communications Service[/caption] [caption id="attachment_54570" align="alignnone" width="300"] @Regional Communications Service[/caption] Public transportation was free for city residents that day, and during the first half of the day it was easy to tell which passengers had already voted and which had not: the latter persistently tried to pay their fares, while the former stopped them from doing so. All of this coincided with an unusually high turnout in Almaty – more than 43%. According to preliminary regional figures announced after polling stations closed, turnout in the city reached 43.23%, the lowest among Kazakhstan’s regions and cities of national significance but unusually high by Almaty standards. Political analyst Andrey Chebotarev noted that turnout at this level had not been recorded in Almaty since 2012, when Kazakhstan was still reeling from the bloody events in Zhanaozen. Chebotarev said the factors behind the current level of voter participation in Almaty would require further study. “Most likely, Almaty residents who are loyal to the authorities were primarily encouraged to vote by the political changes that began with the adoption of Kazakhstan’s new Constitution. Protest-minded residents apparently did not stay away either, expressing their dissatisfaction by voting ‘against all.’ But both groups were united by strong interest in the election campaign that has just ended,” the political analyst suggested. The author of this article exercised his civic right at 11 a.m., when the ballot box at his polling station was already almost one-third full. Election commission members...

TCA Interviews

Suleimenov Says Stronger Policy Framework Supported Kazakhstan’s S&P Upgrade

A stronger monetary-policy framework, a resilient banking sector, and closer coordination with the government were among the strengths recognized in S&P Global Ratings’ upgrade of Kazakhstan, National Bank Governor Timur Suleimenov told The Times of Central Asia. “S&P’s upgrade of Kazakhstan’s sovereign credit rating from ‘BBB-’ to ‘BBB’ is an important external assessment of the resilience of our economy amid continued global uncertainty and commodity market volatility,” Suleimenov said. On August 21, S&P raised Kazakhstan’s long- and short-term sovereign credit ratings to BBB/A-2 from BBB-/A-3. The stable outlook reflects S&P’s view that Kazakhstan’s ample fiscal and external buffers should help it absorb external shocks, while the non-oil budget deficit is expected to narrow further. Kazakhstan last held the BBB rating before S&P downgraded it in February 2016. Kazakhstan now carries the same BBB long-term sovereign rating as India, Indonesia and Greece. It stands one notch above Hungary, Oman and Serbia at BBB-, and one below Bulgaria and Italy at BBB+. The comparison concerns credit risk rather than economic size or development. Why S&P Moved Now S&P expects Kazakhstan’s economy to grow by 5.1% in 2026 and by around 4% to 4.5% annually in 2027–2029, a pace it says exceeds that of peer countries. It also expects a broader tax base, tighter expenditure controls and reduced quasi-fiscal activity by major state-owned enterprises to improve the country’s fiscal position. Stricter rules governing National Fund withdrawals are intended to preserve the assets available to absorb commodity-price falls and other external shocks. According to the National Bank’s account of the decision, S&P also highlighted Kazakhstan’s substantial foreign-currency reserves and strong external position. A Stronger Monetary Framework “We particularly welcome the agency’s recognition of the strengthening of Kazakhstan’s monetary policy framework and the resilience of the banking sector to macroeconomic shocks,” Suleimenov said. Suleimenov had outlined that policy course in earlier interviews with TCA. In April, he described tighter monetary conditions alongside government fiscal consolidation, while in June, after the Bank cut its base rate from 18% to 17%, he cautioned that inflation had not been defeated and said further moves would depend on incoming data. Annual inflation declined from 11% in March to 10.2% in July. S&P cited a stronger monetary-policy framework, closer government-National Bank coordination, fiscal consolidation, reduced quasi-fiscal activity and tighter macroprudential regulation. It also described the banking sector as resilient, with adequate capital and liquidity buffers. The National Bank’s response went beyond the base rate. It increased minimum reserve requirements, used operations linked to gold purchases to absorb excess liquidity and supported measures to slow unsecured consumer lending. The Bank lowered the rate again to 16.75% in July as inflation eased. Even so, inflation remains more than double the National Bank’s medium-term target of 5%. S&P’s assessment recognizes the strengthening of the monetary-policy framework, not the end of Kazakhstan’s inflation problem. “Enhanced coordination between the Government and the National Bank, together with the continued improvement of regulation and supervision, is contributing to stronger macroeconomic and financial stability,” Suleimenov said. Fiscal Reform...

World Nomad Games

Kok Boru and the Art of Being Noticed: The World Nomad Games as Kyrgyzstan’s Calling Card

A stampede throws up a great wall of dust as a scrum of white, sweating stallions tears past. A roar rises from the stands. With horsemen in hot pursuit, a rider bursts from the pack, swinging a 30-kilo plastic simulation of a goat carcass. As they charge toward the goal, the horses bare their teeth. This is the spectacle awaiting travelers from far and wide at this year’s World Nomad Games. For Kyrgyzstan, the Games are a source of pride. Born beside Lake Issyk-Kul, twelve years on, the sixth edition will see 100,000 visitors descend on a town of 13,000. The timing in 2026 makes the aspiration hard to ignore. The opening ceremony falls on Kyrgyzstan’s Independence Day, while leaders are also gathering in Bishkek for the Shanghai Cooperation Organization summit. Presidential spokesman Askat Alagozov has said 21 heads of state are expected. The Games will open before many of them in the new 51,000-seat Bishkek Arena. [caption id="attachment_54493" align="aligncenter" width="1774"] Image: International Secretariat of the World Nomad Games[/caption] Kyrgyzstan has spent more than a decade building toward this goal. The initiative was approved at the Turkic Council summit in Bishkek in 2012 before the first Games were staged in Cholpon Ata in 2014. Then, there were 583 athletes from 19 countries. Kyrgyzstan hosted again in 2016 and 2018, before the event moved to Turkey in 2022 and Kazakhstan in 2024. That decision could have diluted Kyrgyzstan’s ownership. Instead, each foreign edition strengthened the identity of the event Kyrgyzstan had started. In December 2025, founder Askhat Akibaev transferred the intellectual property rights to the Kyrgyz state. Cabinet Chairman Adylbek Kasymaliev called the Games “the flagship of our state’s cultural diplomacy.” Akibaev explained the achievement succinctly after the first three editions. “We proved to ourselves and the world that a small country can do something global,” he told RFE/RL. Kyrgyzstan cannot match major powers through stadium budgets or international sports leagues, but the Games have given it access to an audience money alone could not buy. The cultural case has also gained international recognition. In 2021, UNESCO selected “Nomad games, rediscovering heritage, celebrating diversity” for its Register of Good Safeguarding Practices. The program was praised for reviving traditional games and passing knowledge to younger generations, while bonding contestants across borders. [caption id="attachment_54490" align="aligncenter" width="1774"] Image: International Secretariat of the World Nomad Games[/caption] The numbers tell their own story. Astana brought together 2,500 athletes from 89 countries in 2024. This year, around 3,000 athletes are registered from 113 countries for 43 sports. Local organizers say the field now reaches far beyond states with a direct nomadic heritage, with newcomers expected from New Zealand and several African countries. Team GB offers one of the clearest examples. Britain competed in Astana in 2024, and is returning with a larger contingent. The team has expanded beyond tug-of-war and intellectual games into horseback archery and wrestling. The sole British competitor in the Alysh wrestling will be The Times of Central Asia contributor, Jonathan Campion. The British...