Digital Development - The Times Of Central Asia

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Data Centers

Kazakhstan to Establish International Computing Hub in Pavlodar Region

Kazakhstan plans to develop an international computing hub centered in the Pavlodar region, based on the emerging “data center valley” in Ekibastuz, one of the country's key energy production zones. The announcement was made by Deputy Prime Minister and Minister of Artificial Intelligence and Digital Development Zhaslan Madiev during an expanded government meeting. The government had earlier unveiled plans to establish a cluster of high-performance data centers in Ekibastuz, a city that hosts extensive coal-fired power generation and robust energy infrastructure. Madiev now says the project will evolve beyond a national cluster into a full-fledged international computing hub. According to Madiev, two critical enablers for the project are affordable electricity and cross-border telecommunications infrastructure. A land plot has already been designated for development, and 300 megawatts of power capacity have been reserved at Ekibastuz GRES-1. Negotiations are ongoing with international investors. AI Center to Anchor Digital Expansion The hub’s anchor facility will be a 50 MW AI-focused data processing center currently under construction by national telecom provider Kazakhtelecom. Scheduled for commissioning in mid-2027, the new facility is expected to be ten times more powerful than Kazakhstan’s recently launched state supercomputer facility. Astana is already home to Central Asia’s most powerful supercomputer, unveiled earlier this year, marking a significant step in the country’s digital infrastructure ambitions. Officials envision this computing expansion as the foundation for a new economic model driven by artificial intelligence and big data. Concerns Over Domestic AI Model Usage At the same government session, President Kassym-Jomart Tokayev expressed dissatisfaction with the uptake of the national large language model, KazLLM. He noted that public interest remains limited, with many users favoring international platforms such as ChatGPT. Madiev acknowledged that while KazLLM is used by approximately 600,000 people, about 3% of the population, foreign AI tools enjoy far broader adoption. He emphasized the importance of ongoing training and updates to local AI models, aligning with global best practices. In addition to KazLLM, a second model, Alem LLM, is also under development. Both systems have already been integrated into numerous digital platforms, including search engines and services targeted at students and IT enterprises.

Digital Development

Kazakhstan to Export Earth Observation Satellites, Expand Digital Infrastructure

Kazakhstan plans to manufacture at least five to six remote sensing satellites in the coming years, with some slated for export, Deputy Prime Minister and Minister of Artificial Intelligence and Digital Development Zhaslan Madiev announced at a recent government meeting. Satellite production is managed by Kazkosmos JSC (National Space Center) and Ghalam LLP, while the Republican Space Communications Center JSC oversees satellite operations in orbit. According to Madiev, the ministry supervises these entities, and their production capacities are currently being fully utilized. “In the coming years, it is planned to launch at least five or six Earth remote sensing satellites at this complex, and part of the production will be focused on export. The expected volume of exports will be about $75 million. The implementation of the project will be the first such experience in the history of Kazakhstan and will allow the formation of high-tech exports,” Madiev said. He also announced that, starting in 2026, satellite internet will be available on trains operated by Kazakhstan Temir Zholy and aboard Air Astana flights. Currently, three satellite internet providers operate in the country, and two foreign companies are expected to enter the market soon. Pilot tests for train and aircraft connectivity are scheduled for this year. In parallel, local authorities are mandated to provide satellite internet access in tourist areas and hard-to-reach regions, funding the efforts independently. Simultaneously, a nationwide initiative is underway to deliver mobile coverage to 40,000 kilometers of national and regional highways, with completion expected within two years. The government is also expanding 5G infrastructure, with networks already active in 20 cities and plans to reach up to 75% of urban areas. More than half of the country’s rural settlements are set to gain high-speed internet access via fiber-optic lines over the next two years. As part of the “Last Mile” project, fiber optics will be extended to hundreds of thousands of households. Additionally, a major international project is underway: the construction of a fiber-optic communication line along the seabed of the Caspian Sea, connecting Kazakhstan to Azerbaijan. “The project will strengthen Kazakhstan’s position as a digital bridge between East and West and increase the stability of international data transmission channels,” Madiev said. This initiative is set for completion by year’s end. As previously reported by The Times of Central Asia, Azerbaijan and Kazakhstan are jointly investing over $50 million into the project.

Transportation

Drone Delivery Pilot Project to Launch in Almaty

A pilot project for drone-based goods delivery is set to launch in Kazakhstan’s largest city, Almaty. The initiative follows the signing of a memorandum between the Ministry of Artificial Intelligence and Digital Development of Kazakhstan and the private company Freedom Lifestyle. According to the ministry, the agreement outlines plans to jointly test drone delivery services in urban settings, with an emphasis on safety, regulatory compliance, and public convenience. Freedom Lifestyle will finance and implement the project, integrating unmanned delivery into its digital platforms. Since early 2025, the company has been building a team of drone operators and testing technology at its Freedom X R&D laboratory. The ministry will focus on developing regulatory frameworks, ensuring aviation safety, and facilitating the integration of drone technology into the urban infrastructure. Gizzat Baitursynov, Chairman of the Committee on Digital Assets and Breakthrough Technologies, stated that the pilot phase will help test the system in real-world conditions and inform the creation of long-term regulatory solutions. The pilot will involve drone delivery of food, daily necessities, and medicines. Each drone will be capable of carrying up to 10 kilograms over a 3-kilometer radius between locations in the upper and central parts of the city. Flights are scheduled to take place during daylight hours and in favorable weather. To minimize risks, drones will operate primarily over green zones and along designated street corridors. Each vehicle is equipped with safety systems, including parachutes and autonomous control in case of communication loss. As the system’s safety and efficiency are validated, the number of drones and service coverage will be expanded, including potential rollouts in rural areas. Kazakhstan has already seen increasing adoption of drone technologies. As previously reported by The Times of Central Asia, unmanned systems are currently used for agricultural land monitoring and are being developed for public safety applications.

IT sector

Kazakhstan’s IT Exports Grew by Almost a Third in 2025

Kazakhstan’s IT sector continued its rapid expansion in 2025, with service exports increasing by more than 30% to reach $1 billion, Deputy Prime Minister and Minister of Artificial Intelligence and Digital Development Zhaslan Madiyev announced at a year-end press conference. At the close of 2024, Kazakhstan’s IT service exports totaled $690.7 million, a 30.5% increase over the previous year. Moreover, export volumes exceeded imports by a factor of 2.1. In 2025, exports grew by another 31%, pushing the total to the $1 billion mark, Madiyev confirmed. A key driver behind this growth has been the Astana Hub ecosystem, which unites around 2,000 IT companies and continues to serve as the cornerstone of Kazakhstan’s digital economy. According to Madiyev, the combined revenue of Hub participants exceeded $1.5 billion in 2025, marking a 20% year-on-year increase. “Through international hubs, more than 100 Kazakhstani startups have entered foreign markets,” said Madiyev. “The ecosystem has also produced the region’s first technology unicorn, Higgsfield.ai. To boost venture financing, the Qazaqstan Venture Group has been established with a target fund of $1 billion, of which $115 million has been raised so far.” Kazakhstan has also advanced in several global digital rankings. Madiyev noted that the country has solidified its position in the e-Government Development Index (EGDI), currently ranking 24th, and is among the top 10 globally in the Online Services Index (OSI). The national supercomputing cluster, alem.cloud, was launched in 2025 and is now ranked 86th in the TOP500 list of the world’s most powerful supercomputers, a benchmark achievement that places Kazakhstan at the forefront of computing power in Central Asia. In parallel, the country is advancing its artificial intelligence agenda. Kazakhstan has developed a national AI strategy and launched Qyzmet AI, a training initiative that has already covered 50,000 civil servants. Madiyev announced that AI proficiency will soon become a prerequisite for employment in the public sector. “We are making AI training mandatory for civil servants,” he said. “In the future, a lack of AI competencies will be a barrier to entering government service.” Kazakhstan is also laying the groundwork for integrating autonomous vehicles into its transport system. Madiyev revealed that a pilot project for unmanned vehicle technologies is in the works. Based on the outcome, national standards and minimum infrastructure requirements will be introduced to support broader deployment. As previously reported by The Times of Central Asia, Kazakhstan is also developing a system of digital passports for intercity highways to accommodate driverless transport.

Digital Development

The Digital Future of Central Asia: Who Is Shaping It, and How?

Digital security is now a key component of most processes in every country. A large share of organizations is moving, or has already moved, their processes online, which requires increased attention and control. Many Central Asian countries are already rolling out AI technologies at the state level. Financial institutions, social systems, crypto services, rental services, and other high-risk areas can no longer develop effectively without biometric identification and AI. Central Asia is gradually developing its own biometric landscape, and if we look at it not as a set of disparate projects but as an emerging infrastructure, it becomes clear that the countries are moving at very different speeds. Kazakhstan: Leader in Biometrics and Digital Identity in the Region Today, Kazakhstan is the undisputed leader in Central Asia in the field of biometric technologies. In this region biometrics has long gone beyond isolated pilots and has become part of the digital infrastructure on which a significant part of the economy operates. Unlike neighboring countries, where biometrics is most often limited to video surveillance or exclusively state initiatives, Kazakhstan has developed a mature market of independent developers and technology companies creating competitive products both for private organizations and for government platforms. Thanks to active digitalization, biometrics in the country has become not an add-on, but the primary mechanism for identity verification. The state additionally stimulates this process: it expands the use of biometric identification in ministerial processes, strengthens the requirements for remote verification, and transfers critical services, such as the issuance of an Electronic Digital Signature (EDS), to biometric authentication. In this way, an environment is being built in which online processes gain full legal validity and the population receives convenient access to services without the need to visit physical offices. Kazakhstan’s key distinction is that it has a full-fledged biometrics market, not just government-driven initiatives. The private sector actively invests in biometric solutions, integrates them into its processes, and competes on the quality of the user experience. Banks strive to reduce entry barriers for clients, MFIs (software development kits) increase protection against fraud, crypto exchanges strengthen their compliance structure, and marketplaces implement biometric identification to secure transactions. This has created an effect unique for the region: biometrics has ceased to be a one-off project and has turned into an everyday part of business. Against this background, independent local companies are developing that are capable of creating advanced technological solutions within the country. Among them, Biometric.Vision stands out in particular, an international company originating from Kazakhstan, one of the key players in the Kazakhstani market that has formed its own technological stack and operates across several industries. The company has become a technological partner for banks, financial organizations, government services, and regulated industries, providing software modules for remote identification, biometric verification, liveness checks, and fraud prevention. Local products make it possible to respond quickly to new regulatory requirements, adapt to them, and address the real needs of local businesses. For Kazakhstan, the presence of local players in the biometrics market is...

U.S.-Uzbekistan Relations

Uzbekistan Deepens U.S. Partnership Through New Investment Council and National AI Strategy

Uzbekistan is advancing a broad effort to strengthen its relationship with the United States through new economic, diplomatic, and technological initiatives. A presidential decree establishing the Uzbekistan–U.S. Business and Investment Council, alongside a major artificial intelligence partnership with NVIDIA, underscores the country’s strategy to draw investment and accelerate digital development. A New Platform for Economic Engagement The creation of the Uzbekistan–U.S. Business and Investment Council follows President Shavkat Mirziyoyev’s recent participation in the C5+1 Summit, where regional connectivity and U.S.–Central Asia cooperation were central topics. The council will be jointly led by the Head of the Presidential Administration and a representative appointed by the U.S. administration, giving both sides a formal mechanism to coordinate investment priorities and oversee major projects. Uzbekistan expects the platform to support initiatives involving institutions such as the U.S. International Development Finance Corporation, the European Bank for Reconstruction and Development, and the Asian Development Bank. Officials have framed the council as part of a longer-term effort to expand trade, encourage U.S. private-sector engagement, and diversify the country’s investment base. Expanding Diplomatic Reach The government is preparing to significantly widen its diplomatic network in the United States. A new Adviser-Envoy will be assigned to the embassy in Washington beginning in 2026 to coordinate investment initiatives linked to the council. Plans are also underway to open additional consulates in Philadelphia, Chicago, Orlando, and Seattle, reflecting both the size of the Uzbek diaspora and growing interest in regional outreach. Uzbekistan’s shift toward deeper engagement includes a visa-free regime for U.S. citizens starting January 1, 2026, which will allow 30-day stays and support increased travel for business and education. Updates on foreign policy and consular matters are regularly published by the Ministry of Foreign Affairs. Expanding the National AI Ecosystem Alongside diplomatic and economic reforms, Uzbekistan is pursuing ambitious plans to grow its artificial intelligence capacity. During a recent visit to the United States, Digital Technologies Minister Sherzod Shermatov held discussions with leaders at NVIDIA on infrastructure development, AI governance, and workforce training. The ministry has positioned the partnership as a key step toward integrating international expertise into Uzbekistan’s digital transformation strategy. The cooperation includes the development of an AI Excellence Center powered by NVIDIA technology and supported by training programs from the company’s Deep Learning Institute. The center will provide training for educators and specialists, while universities begin preparing to introduce AI-focused academic programs and certification pathways. A Nationwide Investment in Digital Infrastructure Uzbekistan plans to deploy two national AI clusters by 2026 with a combined computing capacity of up to one megawatt. One cluster will support academic and research institutions, while the second will focus on public-sector systems and industrial projects, including automation, healthcare analytics, and digital government services. Funding is in place for NVIDIA-powered supercomputers that will be installed at leading universities, with procurement scheduled for late 2025. The government is also creating an Industrial AI Excellence Center backed by a $3 million investment. The facility is expected to begin operating in 2026 and will concentrate on...