Drone Strikes on Russian Data Centers Disrupt Yandex Services Across Central Asia

Drone attacks on three Yandex data centers in Russia disrupted taxi, delivery, and other digital services in Kazakhstan, Kyrgyzstan, and Uzbekistan. At the same time, the company said that Kazakh users’ personal data continued to be stored within Kazakhstan. The outages revealed how heavily Central Asia’s digital economy depends on computing infrastructure beyond its borders. Between October 8 and 11, drones attacked three Yandex data centers in Russia. The first facility hit was in Sasovo, in the Ryazan region, where two supercomputers used for artificial intelligence development were located. The center shut down completely. A subsequent strike hit a data center in Kaluga, disabling some of its equipment. On October 11, another attack forced a facility in Vladimir to shut down. Yandex confirmed the damage and said no employees were injured. Company specialists began redistributing computing workloads among the remaining operational sites, but it is not yet known when the damaged equipment will be fully restored. According to Reuters, the strikes on Russian data centers were part of an expansion of attacks on economic and technological infrastructure during Russia’s war against Ukraine. The consequences quickly spread beyond Russia. On October 11, users in Kazakhstan encountered problems ordering taxis, meals, and groceries through Yandex Go, Yandex Eats, and Yandex Lavka. The disruptions also affected scooter rentals and other applications. Drivers and couriers could not receive orders, while restaurants and stores temporarily lost access to some of their customers. Yandex Qazaqstan confirmed the technical problems. By evening, taxi booking was available again, although some functions continued to operate with restrictions. The company explained that when servers fail, computing tasks are transferred to other resources, but switching workloads takes time. Similar disruptions occurred in Kyrgyzstan and Uzbekistan. Users reported errors when booking rides and ordering deliveries, as well as problems displaying fares. In Kyrgyzstan, Yandex’s local division acknowledged the problems and confirmed that damage to infrastructure in one country could disrupt applications in another. For Central Asia, this is more than a temporary inconvenience. Digital platforms have become part of the urban economy, supporting the work of drivers, couriers, restaurants, stores, and delivery services. When an application stops accepting orders, some market participants effectively lose access to customers. However, reliable estimates of financial losses in Kazakhstan, Kyrgyzstan, and Uzbekistan are not yet available. It is unclear how many orders were lost or whether partners will be compensated for their losses. The outages also affected Yandex’s financial services. Dmitry Pirogov, head of the company’s fintech division, said on October 11 that users were temporarily unable to check their balances, pay for purchases, or transfer money through Yandex Pay. According to him, account information is stored in multiple copies, and checks found no loss of records. However, data preservation did not ensure uninterrupted access to financial transactions. This distinction proved particularly important for Kazakhstan. Following the widespread outages, questions arose about why damage to servers in Russia affected applications in Kazakhstan despite local legal requirements to store personal data within the country. Yandex Qazaqstan said...

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.