AI - The Times Of Central Asia

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data center

U.S.-Linked Consortium to Build $1.5 Billion Data Center in Kazakhstan

Kazakhstan has signed a memorandum of cooperation with an international consortium that includes Dornan Engineering Group and JMOT04 to develop a major high-capacity data center project in the country. Kazakhstan’s Ministry of Artificial Intelligence and Digital Development signed the agreement during GITEX AI Kazakhstan. According to the ministry, the project involves the construction of a Tier III–Tier IV high-reliability data center with planned capacity ranging from 50 MW to 200 MW. Investment in a 200 MW Tier IV facility is estimated at between $1 billion and $1.5 billion. To ensure a stable and independent power supply, the project also includes plans to build a gas-fired power plant with capacity of up to 250 MW. Investment in the energy facility is estimated at between $200 million and $400 million. The project will be implemented by Ample Solution Limited, one of Asia’s largest suppliers of electronic components, founded in 2008. “Kazakhstan has a unique geographic position, a favorable climate, and competitive electricity costs. These factors create a solid foundation for hosting international data centers and developing digital infrastructure,” said Zhaslan Madiyev, deputy prime minister and head of the Ministry of Artificial Intelligence and Digital Development. Authorities are currently selecting the optimal location for the project, prioritizing sites near gas infrastructure to ensure efficient electricity generation and operational reliability. The Times of Central Asia previously reported that Kazakhstan’s planned “data center valley” would be located in the northeastern Pavlodar region. Speaking after a government meeting on May 5, Deputy Energy Minister Sungat Yessimkhanov said the first facilities in the cluster are expected to appear as early as next year. According to Yessimkhanov, work is currently underway to formalize land allocations and ensure a stable electricity supply for the centers. “We are directly involved in the overall process. At the first stage, 300 MW will be required, and there are no issues with that volume,” he said. “The first facilities will appear in 2027, and uninterrupted electricity supply will be guaranteed by then.” During the GITEX AI forum, Kazakhstan’s Energy Ministry and the Ministry of Artificial Intelligence and Digital Development also signed cooperation memorandums with Ample Solution Limited and Dominor Partners Ltd covering the development of hyperscale data centers in Kazakhstan, including the creation of a specialized cluster combining digital and energy infrastructure. Under the agreements, the parties will cooperate on the development of supporting energy infrastructure, including power generation projects using gas, coal, and renewable energy sources to ensure a stable electricity supply for the data centers. Particular attention will also be given to localizing the production of equipment and technologies to strengthen technological independence and create new opportunities for industrial development. The agreements additionally provide for technology transfer, workforce development, and joint work on digital and energy infrastructure projects, including the Industrial & Digital Energy Hub initiative. According to Kazakhstan’s Energy Ministry, the projects are expected to attract investment, support the development of the digital economy, create jobs, and strengthen Kazakhstan’s position as a regional technology and energy hub.

digital economy

Kazakhstan Accelerates AI Push to Build Digital Economy

Kazakhstan must accelerate its transition to a digital economy and scale up artificial intelligence if it wants to avoid economic stagnation, President Kassym-Jomart Tokayev has said. Speaking on May 4 at a meeting of the AI Development Council, Tokayev warned that Kazakhstan’s traditional growth drivers, including natural resources and low-cost labor, are nearing exhaustion, while new engines of growth have yet to take shape. According to the president, Kazakhstan is already facing the “middle-income trap.” He said avoiding stagnation requires a shift to a digital economy and the development of platform-based solutions. “Without a unified system of government data, artificial intelligence will remain ineffective,” Tokayev said. He called for public services to become an “invisible but highly efficient operating system” capable of reducing processing times from days to seconds, which he said would accelerate capital turnover across the economy. Kazakhstan has begun testing this approach in customs, tax administration, logistics, and public finance. The KEDEN customs platform has cut declaration processing times to under one minute, while Smart Cargo is being developed as a single digital window for logistics services. The integrated tax administration system has reduced document processing times from one hour to one minute. The Smart Data Finance platform brings together data from 78 sources, including financial transactions and transport activity. Authorities say real-time budget monitoring has helped prevent risky payments worth hundreds of billions of tenge. A public procurement forecasting system, built on a national product catalog with more than 23 million items, is also being developed to reduce budget waste. Tokayev said the digital economy already accounts for more than 15% of global GDP, reflecting a shift in global competition from goods markets to data and standards. He also emphasized the need to develop digital financial instruments, including cryptocurrencies and asset tokenization. “This will increase the country’s attractiveness for global capital and create the conditions for Kazakhstan to become a leading investment and financial hub,” he said. According to Tokayev, Kazakhstan has already established a legal framework for regulating digital assets. The government and the National Bank have been tasked with coordinating a strategy for developing the crypto market. At the same time, Tokayev stressed the need for more precise measurement of digitalization’s contribution to economic growth. “When GDP growth is reported, it is essential to clearly understand what share comes from the real sector and what from innovation,” he said, warning that the absence of a clear methodology could create an illusion of progress while masking underlying challenges. Tokayev also visited the GITEX AI Central Asia & Caucasus exhibition, where projects in AI, logistics, and fintech were showcased. Among them was an AI assistant deployed in Kazakhtelecom’s contact center, where it processes customer requests and helps detect fraudulent calls. Projects aimed at developing a digital asset ecosystem and crypto market infrastructure were also presented, including tokenized financial instruments on the Kazakhstan Stock Exchange. Experts say Kazakhstan is already taking steps to compete in the global technology landscape. According to Rustem Mustafin, head of the Center...

Kazakhstan Develops AI System for Drilling Monitoring with Plans for Export

Kazakhstan has developed a domestically produced AI system for real-time monitoring of drilling operations and plans to promote it in international markets, Energy Minister Yerlan Akkenzhenov has announced. Speaking at a government meeting on April 28 focused on integrating AI into the economy, Akkenzhenov announced the creation of an AI alliance under the Ministry of Energy. The alliance brings together technology companies, industry participants, and developers to coordinate the deployment of digital solutions, with a priority on local innovations. One of the alliance’s key initiatives is an intelligent drilling monitoring system currently undergoing pilot implementation. According to Akkenzhenov, the system covers more than 4,000 wells and analyzes production data in real time, identifying anomalies and forecasting output levels. The pilot project is being implemented at facilities operated by KazMunayGas and other subsoil users. The deployment is expected to reduce well downtime by up to 20% and generate an estimated economic benefit of around $2.2 million annually. “It is important that the system has been developed in Kazakhstan and has export potential. Work is currently underway to promote it in international markets, including the United States,” Akkenzhenov said. The minister added that AI is also being used to monitor the circulation of petroleum products. The system processes real-time data from oil refineries, storage facilities, the national railway operator Kazakhstan Temir Zholy (KTZ), and government agencies. This enables more accurate forecasting of fuel reserves and helps identify risks of shortages or excess supply. “The expected outcome is an increase in planning accuracy to 85% and savings of up to $48.4 million annually,” the minister said. The system was developed through cooperation between KazMunayGas and the Kazakh-British Technical University as part of the AI-Sana program aimed at strengthening AI capabilities. According to the ministry, the AI alliance has developed a portfolio of 45 projects, 10 of which are currently under evaluation and preparation for implementation. The Times of Central Asia previously reported that President Kassym-Jomart Tokayev had instructed the creation of a specialized artificial intelligence university in Kazakhstan.

Labor Market

AI in Kazakhstan to Affect Four Million Jobs in Next Decade, Says Labor Ministry

Around half of all professions in Kazakhstan are expected to change under the impact of AI over the next decade, with some jobs declining and others disappearing entirely, lawmakers and government officials have said. Daniya Yespayeva, Deputy Chair of the lower house of parliament, the Mazhilis, citing data from the Ministry of Labor, stated that by 2035, transformations will affect 562 jobs, about 44% of the labor market, equivalent to roughly 4 million workers. According to her, employment in 46 professions, covering around 362,000 people (about 4% of the labor market), is expected to decline, while 14 professions, employing approximately 49,000 people, may disappear completely. Yespayeva did not specify which professions are at greatest risk. However, Minister of Science and Higher Education Sayasat Nurbek noted that couriers and taxi drivers could be among the first affected. He said that around 700,000 people in Kazakhstan currently work in these sectors through platforms such as Glovo, Yandex, and Wolt. “These are temporary forms of employment. As early as this year, several Kazakh companies are launching autopilot technologies in both taxi services and delivery, so within a few years, couriers and taxi drivers may no longer be needed,” Nurbek said, urging citizens to focus on more sustainable career paths. Earlier reports indicated that a pilot drone delivery project could be launched in Almaty, while driverless taxis are planned for introduction in Astana. Askhat Aimagambetov, a Mazhilis deputy, also warned about risks facing several popular academic fields. According to him, in 2025, the highest competition for university admissions was in programs such as Translation Studies, International Relations, and Law, fields that, in his view, could be among those most affected by automation. Aimagambetov stressed the need to revise the allocation of state-funded educational grants to avoid encouraging training in professions at high risk of decline. He also noted that employment among young developers aged 22-25 declined by nearly 20% over the past year, despite significant investment in IT education. “We are training an army of coders at a time when AI is already writing code itself. It is no longer enough to train ‘coders of yesterday,’” he said. Nurbek agreed with this assessment, pointing to a shortage of specialists in eight key sectors, including advanced manufacturing, digital technologies, clean energy, finance, life sciences, defense, creative industries, and professional services. According to him, part of the gap is being addressed through private-sector involvement. Kazakhstan has established 75 joint laboratories across 19 universities in partnership with companies such as Amazon Web Services, Cisco, Huawei, Schneider Electric, and Honeywell, as well as Eurasian Resources Group, Freedom Holding, and KEGOC. More than 7,500 students are currently studying in these laboratories across 179 disciplines. Business investment in these initiatives has totaled around $5.2 million, although the minister noted that such efforts remain limited in scope. “If this gap is not addressed, the education system will continue to train specialists for yesterday’s economy,” Nurbek said, emphasizing that aligning education with economic needs has become a matter of national security.

Astana to Host International AI Film Festival

Astana will host the Astana AI Film Festival (AAIFF 2026) this autumn an international event dedicated to films created using artificial intelligence. The festival will focus on the growing influence of AI on the creative industries. Its central feature will be an international competition of short films produced using AI technologies, according to the Creative Industries Alliance of Kazakhstan. Speaking at an awards ceremony for the Alem.ai Battle and AI Governance Cup competitions, President Kassym-Jomart Tokayev said the festival reflects a “fundamental shift” in the development of the creative sector. According to him, AI is transforming the nature of creativity, opening new forms of expression and lowering barriers for creators. At the same time, Tokayev acknowledged more cautious views suggesting that AI could reshape, or even displace, traditional segments of the creative industries. In this context, he stressed the importance of adapting in a timely manner to emerging technological trends. The festival is expected to serve as a platform for showcasing innovative approaches to filmmaking and promoting Kazakh creative projects internationally. Applications for participation are set to open in May. The announcement comes amid broader efforts by Kazakhstan to develop AI. The Times of Central Asia previously reported plans to establish an AI fund backed by the National Bank, aimed at financing key digital projects and educational programs.

Cyber Security

Kazakhstan to Train “White Hat” Hackers and AI Engineers for the Energy Sector

Kazakhstan plans to train cybersecurity and AI specialists for the energy sector as part of its broader effort to digitally transform the industry, the country’s Ministry of Energy said. In 2026, declared the Year of Digitalization and Artificial Intelligence in the electricity and heat power sector, the ministry plans to develop a professional standard titled Digitalization and the Application of Artificial Intelligence in Energy. The document envisages the creation of new professions, including “white hat” hackers and AI engineers. A “white hat” hacker is a cybersecurity specialist who legally tests IT systems for vulnerabilities with the owners’ permission. Unlike malicious hackers, such experts identify weaknesses so they can be fixed before potential attacks, thereby protecting data and infrastructure. Following a meeting of the Sectoral Council for Electricity and Heat Power Engineering under the ministry, the new standard was expanded to include the following specialties: smart grid designer, engineer for the development and implementation of AI in power systems (Smart Grid), and energy grid cybersecurity specialist (“white hat” hacker). The ministry said these professions were formulated on the basis of Kazakhstan’s Atlas of New Professions and Competencies and are intended to adapt the education system to the demands of the digital economy. The development of Smart Grid systems is seen as one of the key tasks for the next five to ten years. In the future, some energy system management functions, including dispatch control, are expected to be handed over to intelligent algorithms, requiring new competencies at the intersection of energy and IT. As part of the digitalization of the fuel and energy complex, Kazakhstan also plans to create a system of digital models and “digital twins” for facilities within the Unified Energy System as early as 2026. “Our goal is not simply to digitize processes, but to create an intelligent model of the energy system. This will improve the quality of operational management and make it possible to take strategic decisions based on precise data rather than forecasts,” Vice Minister of Energy Bakytzhan Ilyas said. According to him, the introduction of vertical online monitoring using digital twins will make it possible to track key parameters in real time from generation volumes to energy production costs. This will form the basis for tariff-setting policy and investment attraction. Kazakhstan’s energy sector is already implementing a number of projects using artificial intelligence technologies. Among them is AI-based defect detection on power transmission lines using drones, computer vision, and machine learning. The technology can identify support structure defects, overheating, and deformations using data from 4K cameras, thermal imagers, and LiDAR. Another example is robotic diagnostics of heating networks using acoustic resonance, allowing the condition of pipelines to be assessed without excavation or shutting down the system. The ministry emphasizes that the digitalization of the energy sector requires not only technological solutions, but also systematic workforce training. As previously reported by The Times of Central Asia, Kazakhstan plans to expand the use of AI across various sectors from healthcare to the fiscal sphere, including early...