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Financial Analyst Says Kazakhstan’s State Data Centers Are Priced Beyond Reach of Businesses

The cost of services offered by state-backed data centers in Kazakhstan is too high for many businesses, making overseas cloud providers a more economical alternative, financial analyst Rasul Rysmambetov said. His comments come as Kazakhstan invests heavily in digital infrastructure and artificial intelligence technologies. Last year, the country launched what authorities described as Central Asia’s most powerful supercomputer, saying its capacity would be made available to startups, universities, and private companies developing AI solutions. The government has also announced plans to create a Data Center Valley in the northeastern Pavlodar Region to support the digitalization of the economy. However, Rysmambetov argued that the pricing of state-supported data centers limits their appeal to the private sector. “A real digital economy is built on microservices, not giant buildings filled with computers,” Rysmambetov told the Atameken Business Forum. “Data centers depreciate at a tremendous pace. Today, state data centers in Kazakhstan charge prices so high that, as a financier, it is far cheaper and easier for me to buy cloud capacity directly in California.” Rysmambetov said that despite economic growth and rising foreign investment, many Kazakhstanis have yet to see significant improvements in living standards. In his view, the key challenge is not attracting investment but converting it into jobs and productive industries. He also argued that traditional investment incentives are losing effectiveness. “Tax breaks, subsidies, and state support measures no longer create a competitive advantage. Instead, they often generate a dangerous environment for corruption,” he said. “What matters today is the quality of institutions and the speed of decision-making.” According to Rysmambetov, Kazakhstan’s investor support system remains fragmented, with multiple agencies performing overlapping functions while coordination between central and regional authorities remains weak. As a result, some government directives are not implemented locally, requiring intervention by prosecutors to protect investors’ rights. Rysmambetov identified rare earth metals and tungsten as among the sectors attracting the greatest investor interest. However, he warned that Kazakhstan risks repeating the resource-dependent model that characterized its oil industry if it focuses primarily on exporting raw materials rather than developing domestic processing industries. “Foreign investors do not create growth, they join it,” he said. “Investors see a functioning economic model, recognize an opportunity, and participate in it. But if we ourselves do not believe in our development strategy, nobody from outside will come.” Kazakhstan aims to attract $62.7 billion in investment this year, including $25.5 billion from foreign investors, as part of its economic development strategy.

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Dushanbe-Moscow Train Service Resumes After Pandemic Suspension

Tajikistan and Russia will reopen a direct passenger train route between Dushanbe and Moscow, restoring the service after it was suspended during the pandemic six years ago. The Dushanbe-Moscow service, a trip of several thousand kilometers that takes four days and passes through Uzbekistan and Kazakhstan, will start again on June 21. The service will run every two weeks, leaving Dushanbe on Sunday and arriving at Moscow’s Paveletsky Station on Wednesday, and leaving Moscow on Thursday and arriving in Tajikistan’s capital on Monday. “At the request of the Railway Administration of the Republic of Tajikistan and in coordination with the railway administrations of Kazakhstan and Uzbekistan, direct rail communication between Moscow and Dushanbe has been restored,” Russian Railways said in a statement. It said the service had been suspended in March 2020 because of the COVID-19 outbreak. Tajikistan’s state Khovar news agency confirmed the resumption of the train route, citing the Ministry of Transport. Stops on the journey include Bukhara, Nukus, Kungrad, Kandyagash, Aktobe, Sol-Iletsk, Orenburg, Samara, Syzran, Kuznetsk, Penza, Ryazhsk, Skopin, and Ozherelye. Tajikistan and Russia had discussed restarting the train route between their capitals as far back as early 2025. Currently, Tajikistan operates train services that link Dushanbe, Khujand, and Kulob to the Russian city of Volzhsky. Migrants from Tajikistan seeking work in Russia have traditionally traveled on the Dushanbe-Moscow train route.

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Inside Tajikistan’s Rogun Dam, the Mega-Project Built to Power a Nation

“Building a hydroelectric power plant is a responsibility for our country!” Displayed in Tajik at the entrance to the Rogun construction site, deep in the mountains of Tajikistan, the slogan captures the significance of what has become the most ambitious infrastructure project in the country’s history - and one of the largest hydropower developments in the world. Nearly fifty years after the Soviet authorities launched construction in 1976, the mega-project is finally entering a decisive phase. Long delayed by the collapse of the Soviet Union, the civil war of the 1990s, and the economic struggles of Central Asia’s poorest country, the project has gained renewed momentum over the past decade. After a two-hour drive through the mountains east of Dushanbe, the scale of the site gradually comes into view. Located more than 1,300 meters above sea level, Rogun is far more than a dam. The complex includes dozens of kilometers of tunnels, diversion canals, underground power stations, and an extensive network of technical infrastructure carved into the rock. [caption id="attachment_49947" align="aligncenter" width="1365"] Turbines in the process of being built[/caption] Once completed, according to current project plans, the structure will rise to 335 meters, making it the tallest dam in the world, Tajik officials proudly note. For now, it stands at approximately 140 meters. “This is where the Vakhsh River flows,” says Anvar Rahmonov, Production Director at Rogun HPP, standing on a ridge overlooking the future reservoir. [caption id="attachment_49948" align="aligncenter" width="2048"] Anvar Rahmonov, Production Director at Rogun HPP[/caption] Fed by glaciers in the Pamir Mountains, the river is diverted through underground galleries that currently power two 600-megawatt turbines. Below, dozens of trucks move continuously across the site while workers labor across different sections of the project. The deep blue waters of the future reservoir - designed to hold more than 13 billion cubic meters of water - contrast sharply with the surrounding red-earth mountains and the constant movement of heavy machinery. The project remains far from complete. Four additional turbines are still under construction. Once fully operational, the plant will have a total installed capacity of 3,600 megawatts, according to Tajik project officials, comparable to that of a nuclear power station. Ending Chronic Energy Shortages For a country of just over ten million people that continues to face electricity shortages every winter, the stakes are enormous. Despite possessing one of Central Asia’s largest hydropower potentials, Tajikistan still suffers from a chronic energy deficit. During the winter months, the country lacks roughly a quarter of the electricity needed to meet domestic demand, resulting in rationing and power restrictions across much of rural Tajikistan. “Thanks to this project, Tajikistan will be able to achieve energy independence,” says Andres Ricaldi, an engineer with the Franco-Belgian consultancy Tractebel, which is involved in the project. In the substation, a diagram of the power lines supplying the different regions is shown. [caption id="attachment_49946" align="aligncenter" width="2048"] Substation zone[/caption] Yet Rogun’s ambitions extend well beyond the domestic market. “The meaning of the Rogun Dam has changed,” explains Artemy Kalinovsky,...

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Kazakhstan Amnesty Bill Could Free 1,500 Inmates, Excludes Violent Offenders

Kazakhstan’s Mazhilis, the lower house of parliament, has approved in its first reading a draft amnesty law tied to the adoption of the country’s new Constitution. The measure could affect approximately 16,500 people, including around 1,500 inmates who could be released from prisons and other detention facilities. The initiative is notable for its scale and because it combines criminal and administrative amnesty measures for the first time in Kazakhstan’s history. According to lawmakers, the administrative component alone could affect around one million unpaid fines. The proposal has sparked public debate over whether individuals involved in high-profile criminal cases could benefit from the measure. Some lawmakers have also argued that journalists and bloggers convicted under controversial legislation should be included. Who Will Benefit? According to Snezhanna Imasheva, chair of the Mazhilis Committee on Legislation and Judicial and Legal Reform, individuals convicted of minor offenses and criminal misdemeanors would be eligible for full release from punishment. For offenses classified as medium severity, a different approach would apply. Individuals who caused no damage, or who have fully compensated victims, could qualify for complete release. Others could receive reductions in the remaining portions of their sentences. Among the most common offenses covered by the amnesty are theft, livestock theft, and embezzlement or misappropriation of entrusted property. Certain economic crimes may also qualify for partial sentence reductions. In some cases, individuals convicted of fraud could receive reduced sentences, provided the offenses do not involve corruption, particularly large-scale damages, or other exclusions specified in the legislation. Imasheva said that approximately one million unpaid administrative fines totaling nearly $33 million could be written off. The measure would apply to fines for offenses committed before midnight on March 17, 2026, shortly after Kazakhstan’s new Constitution was adopted in a nationwide referendum. Who Will Not Be Released? The draft law excludes crimes against life and health, corruption offenses, terrorism, and extremism. Those convicted of murder, assisting suicide, intentional infliction of serious, moderate, or minor bodily harm, assault, torture, stalking, HIV transmission, and sexual offenses will not be eligible for amnesty. Those convicted of murder, assisting suicide, intentional infliction of bodily harm, assault, torture, stalking, HIV transmission, and sexual offenses will not be eligible for amnesty. The measure also excludes recently criminalized offenses such as acting as a financial “dropper” in fraud schemes and bride kidnapping. High-Profile Convicts Remain Excluded Former minister of national economy Kuandyk Bishimbayev, who was convicted in May 2024 of murdering his common-law wife, Saltanat Nukenova, will neither be released nor receive a sentence reduction. His convictions for murder committed with extreme cruelty and torture fall among the offenses excluded from the amnesty. Another widely publicized defendant, Perizat Kairat, will also be ineligible. Kairat, the founder of the charity Biz Birgemiz Qazaqstan 2030, was convicted in a high-profile fraud case involving funds raised for flood victims and other charitable causes. Lawmakers said her conviction for large-scale fraud falls under offenses excluded from the amnesty. In July 2025, Kairat was sentenced to ten years in prison, while her...

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Kyrgyzstan Wins First-Ever Seat on UN Security Council

Kyrgyzstan has been elected to the United Nations Security Council for the 2027–2028 term, securing a non-permanent seat after a closely watched contest for the Asia-Pacific Group’s vacancy. The election marks the first time Kyrgyzstan will serve on the Security Council, the UN’s most powerful body for matters of international peace and security. It also returns Central Asian representation to the Council for the first time in nearly a decade, following Kazakhstan’s 2017–2018 term. Kyrgyzstan defeated the Philippines for the Asia-Pacific seat in the General Assembly vote, joining the incoming class of non-permanent members that will serve two-year terms from January 1, 2027, through December 31, 2028. The 2026 election filled five seats: one for Africa, one for Asia-Pacific, one for Latin America and the Caribbean, and two for the Western European and Others Group. The contest went to four rounds of voting before Kyrgyzstan secured the required two-thirds majority, defeating the Philippines by 142 votes to 49. Austria, Portugal, Trinidad and Tobago, and Zimbabwe were also elected to the Council. Kyrgyzstan will replace Pakistan when the new term begins. The Asia-Pacific race was the only contest involving Central Asia, but the wider election produced a surprise in the Western European and Others Group, where Germany failed to win one of the two available seats. Austria and Portugal were elected instead. For Bishkek, the result represents a major diplomatic breakthrough. Kyrgyz officials had framed the campaign as an opportunity to give greater voice to states that have never served on the Council, particularly landlocked and mountainous countries facing security, development, climate, and connectivity challenges. As of 2027, 59 UN member states will still have never served on the Security Council. President Sadyr Japarov had urged world leaders to support Kyrgyzstan’s bid, framing it as a chance to give small, developing, and landlocked states a stronger voice on the UN Security Council. Foreign Minister Jeenbek Kulubaev also framed the campaign in broader multilateral terms, arguing that smaller states need a greater role in responding to global security challenges. “No single state can address modern-day threats alone; that is why multilateral diplomacy is critical,” he said, speaking before the vote. The victory also carries broader regional significance. Central Asia sits at the intersection of several issues regularly discussed at the Security Council, including Afghanistan, counterterrorism, water security, transnational crime, and regional stability. Kyrgyzstan’s term is expected to give the region a more direct platform in Council deliberations. The seat will not give Kyrgyzstan veto power, which is held only by the five permanent members. But non-permanent members vote on resolutions, sanctions, peacekeeping mandates, and statements, and each member holds the rotating presidency of the Council for one month during its term. For Central Asia, the timing is significant. Afghanistan remains a recurring security concern, while terrorism, border security, narcotics trafficking, and climate-related instability all carry direct regional implications. Kyrgyzstan’s presence will give Bishkek a formal role in debates that often affect the region but are usually shaped by larger powers. The Security...

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Kyrgyzstan’s Armed Forces Double in Size Amid Rising Defense Spending

Kyrgyzstan’s armed forces have roughly doubled in size since 2018 amid a sharp increase in defense spending, military rearmament, and improved social benefits for service personnel, according to General Staff chief Tariel Otonbaev. On May 29, Kyrgyzstan marked the 34th anniversary of the establishment of its national armed forces. Speaking at the anniversary event, Chairman of the Cabinet of Ministers Adylbek Kasymaliev said the development of the country’s modern military had been shaped by the armed incursions in the Batken region in 1999-2000 and the border conflict with Tajikistan in 2022. In an interview with The Times of Central Asia, Otonbaev said today’s military differs significantly from the force that existed five or ten years ago. “Over the past five years, military funding has increased by 300%. Today, approximately 2% of the country’s GDP is allocated to defense. Most importantly, interest among young people in military service has grown,” he said. According to Otonbaev, some military units faced shortages of contract personnel of between 30% and 40% just a few years ago. Today, staffing levels among contract soldiers exceed 95%. Otonbaev also highlighted improvements in living conditions for military personnel. More than 900 service members are expected to receive housing this year, while others receive monthly government compensation for rental costs ranging from $170 to $205. Food standards have also improved, he said. The daily caloric intake provided to service members has increased from 1,800 to 4,800 calories, while the range of food products available has been expanded. “The state has begun fulfilling its social obligations. Arms procurement has become systematic, and today the military is fully supplied with the equipment and weapons it needs,” Otonbaev said. According to General Staff data, Kyrgyzstan’s armed forces now number approximately 23,000 personnel, compared with about 11,000 in 2018. In addition, roughly 300,000 citizens are registered as reservists. The country’s military budget has reached $654 million. Otonbaev said the armed forces are closely studying lessons from modern conflicts and adapting training programs to new forms of warfare. Specialized units within the military analyze emerging trends and oversee their incorporation into force development and training. Particular attention is being paid to unmanned systems. According to Otonbaev, modern warfare has been transformed by the widespread use of drones and artificial intelligence technologies. Kyrgyzstan acquired its first combat drones in late 2021, purchasing Turkish-made Bayraktar TB2 unmanned aerial vehicles. Since then, the country has purchased additional unmanned systems from other suppliers and has begun developing its own fixed-wing and rotary-wing military drones. The first domestically produced models were showcased during the Rubezh-2025 military exercises held by the Collective Security Treaty Organization, marking another step in the development of Kyrgyzstan’s domestic defense industry. The rapid expansion of the armed forces is part of Bishkek’s effort to build national defense capabilities following recent regional security challenges and adapt its military doctrine to the changing nature of modern warfare.