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Kazakhstan-U.S. Relations

No Longer a Startup Market: Kazakhstan Makes Its Case to U.S. Investors

Washington D.C. - Acting on President Kassym-Jomart Tokayev’s push to convert strategic alignment with Washington into tangible commercial gains, senior Kazakh officials told U.S. investors on April 14 that the bilateral relationship is entering a deeper phase focused on energy, critical minerals, and transport infrastructure. Within that context, the country has undertaken constitutional reforms and other modernization efforts to digitize and improve the investment climate. The Kazakhstan delegation was led by Erzhan Kazykhan, President Kassym-Jomart Tokayev’s Special Representative for Negotiations with the United States on priority issues of bilateral cooperation, and included National Bank Governor Timur Suleimenov and Deputy Foreign Minister Alibek Kuantyrov, who traveled to Washington for the meetings. Kazakhstan’s Ambassador to the United States, Magzhan Ilyassov, also participated. A Delivering Partner, Not a Prospective One Kazykhan presented the new commercial push as a direct outgrowth of Tokayev’s November 2025 Oval Office meeting with President Trump, casting the Kazakh leader as a partner in a more ambitious phase of U.S.-Kazakhstan relations aimed at converting political trust into practical cooperation on energy security, critical minerals, and strategic transport corridors. He placed that agenda within the framework of Kazakhstan’s participation in U.S.-backed regional diplomacy as well, pointing to Kazakhstan joining the Abraham Accords and President Trump’s broader peace initiatives. Kazykhan also highlighted Kazakhstan’s role as a founding member of the Board of Peace, noting that Tokayev signed its charter in Davos in January and participated in its inaugural meeting in Washington on February 19. Kazakhstan is positioning itself as a constructive U.S. partner not only in Eurasian connectivity and resource security, but also in Middle East stabilization through support for reconstruction, healthcare, education, and longer-term peace-building efforts. Kazakhstan is seeking to set itself apart as a partner that delivers. While many countries pitch cooperation with Washington in terms of future potential, Astana’s message is that engagement has already produced tangible commercial outcomes. Following the Oval Office meeting, 29 agreements had been signed, including with Cove Capital, Boeing, Cerberus Capital Management, and Wabtec, with a combined value of more than $17 billion. Kazykhan added that more than 600 American companies operate in Kazakhstan and that cumulative U.S. investment has exceeded $60 billion, making the United States the country’s largest foreign investor. [caption id="attachment_47222" align="aligncenter" width="1429"] Kazakhstan Deputy Prime Minister and Minister of National Economy Serik Zhumangarin; Special Representative for Negotiations with the United States, Erzhan Kazykhan; and Kazakhstan's Ambassador to the United States Magzhan Ilyassov meet with U.S. Secretary of State Marco Rubio on April 15 to strengthen commercial ties and advance regional cooperation. Image: USDOS[/caption] No Longer a Startup Market Ambassador Ilyassov said the discussion was more in-depth than a typical roundtable, because the relationship with U.S. partners has matured over many years. The tone of the session matched that description. The discussion centered on specifics of expansion, supply chains, regulation, and long-term capital rather than general market entry. [caption id="attachment_47219" align="aligncenter" width="2048"] Kazakhstan’s Ambassador to the United States, Magzhan Ilyassov; image: Kazakhstan Embassy, U.S.[/caption] Unlike the rest of Central Asia,...

Alatau

Alatau: Inside Kazakhstan’s $20 Billion “City of the Future”

Details about the ambitious plans for Alatau city were presented to a joint session of Kazakhstan’s parliament on March 20. Authorities are moving ahead full-speed on the project to build the new city that one day could be home to some two million people. According to the plans, Alatau will be a unique city, not only in Kazakhstan, but in the world. [caption id="attachment_45827" align="aligncenter" width="1704"] Image: Skidmore, Owings & Merrill (SOM) [/caption] From Village to Metropolis Alatau city is being built on the site of what was the village of Zhetygen, some 50 kilometers north of Almaty. It will occupy an area of some 88,000 hectares, “larger than both Singapore and Seoul.” Relieving the congestion of Kazakhstan’s commercial capital was one of the major concerns when selecting a site for the new city. Another consideration was Alatau’s location along the Middle Corridor, the developing East-West trade route linking Europe and China. Alatau city will have an airport and railway junctions. Alatau city will have four districts – Green, Growing, Golden, and Gate. [caption id="attachment_45826" align="aligncenter" width="1704"] Image: Skidmore, Owings & Merrill (SOM) [/caption] The Gate district will be the business and financial area and is where the airport and railways will be located. It will also be the southern-most area of the city and therefore closest to Almaty. The Golden district will be the “hub of knowledge, healthcare, and innovation,” the location of hospitals and other medical facilities, tech centers, and educational institutions able to take 40,000 students are planned for the district. The Growing district will be the industrial and logistics center for export-oriented trade. It will include clusters for food, chemicals, building materials, and light industry. The Green district, on the shore of Kapchagay Lake and with the Kaskelen River running through it, will be the recreational and tourist area of the city. [caption id="attachment_45828" align="aligncenter" width="1704"] Image: Skidmore, Owings & Merrill (SOM) [/caption] Alatau city lies along the main road between the cities of Almaty and Konayev (the “gambling capital of Kazakhstan"). Deputy Prime Minister Kanat Boumbayev told parliament on March 20 that testing of air taxis to ferry people between Almaty and Alatau would start this year, and within two to three years, operations would open to the public. Bozumbayev said the flight time would be 10-15 minutes. Additionally, expansion of the Almaty metro system is progressing with plans for the Green Line to eventually reach Alatau. Alatau will be a smart city and will be developed under the principle “digital by default,” meaning people will be encouraged to go online as much as possible for goods and services, but will still offer support for those who prefer to use traditional means. Financing The Kazakh authorities are expecting construction of Alatau city to require some 10 trillion tenge (about $20.836 billion) of investment by 2050. Kazakhstan is seeking foreign investment and offering advantageous conditions to foreign companies. Deputy Prime Minister Bozumbayev said, “The tax model is described separately: incentives are proposed to be granted only...

data center

Kazakhstan Plans ‘Data Center Valley’ in Pavlodar Powered by Coal Energy

Kazakhstan intends to establish a major data center hub in the Pavlodar region, powered by the coal-rich Ekibastuz basin. The announcement was made by President Kassym-Jomart Tokayev during a meeting of the National Kurultai (Assembly), where he outlined key steps in the country’s digital and energy strategies. The initiative is part of Kazakhstan’s broader goal to develop a fully-fledged digital economy by 2029. As Tokayev noted, 2026 has been declared the Year of Digitalization and Artificial Intelligence. In line with this vision, the government recently established the Ministry of Artificial Intelligence and Digital Development to oversee technological transformation. “The introduction of digital solutions and AI technologies will improve the quality of public administration and industrial efficiency. But these plans require robust and sustainable energy infrastructure,” Tokayev stated. He stressed the need to designate zones in advance for the construction of high-capacity data centers, complete with energy, cooling, and security systems. The proposed “data center valley,” developed in cooperation with the Pavlodar regional akimat, is expected to be powered by the Ekibastuz coal basin, one of the largest in the country. Tokayev emphasized that Kazakhstan must not delay the commissioning of new energy infrastructure and should not rely solely on nuclear power. The country’s first nuclear plant, currently in planning with Russia’s Rosatom, is not scheduled to come online until 2035. He compared data centers to metallurgical plants in terms of electricity demand, underscoring that energy self-sufficiency is becoming central to Kazakhstan’s economic strategy. The country’s current electricity output of 123.1 billion kWh is insufficient to support both its industrial and digital development targets. Kazakhstan holds an estimated 33 billion tons of coal reserves, enough to last 300 years at present consumption levels. Tokayev called for coal to be treated as a strategic resource, with the application of modern environmental technologies to reduce its environmental impact. The president instructed the government to present a proposal by March 20 to grant coal generation the status of a national project. Planned energy infrastructure projects include new coal-fired thermal plants in Kokshetau, Semey, and Oskemen, the commissioning of a plant in Kurchatov, and the expansion of GRES-2 and construction of GRES-3 in Ekibastuz. Simultaneously, the government aims to speed up the deployment of balancing capacities, particularly gas-based generation. However, Tokayev also warned of a worsening gas deficit: in 2024, Kazakhstan’s commercial gas imports surged by 18%, reaching 4.5 billion cubic meters. As previously reported by The Times of Central Asia, the Ministry of Energy plans to eliminate the country’s electricity shortfall and begin energy exports by 2027.

Energy Policy

Tokayev Calls Nuclear Power a Correction of Kazakhstan’s “Historical Absurdity”

President Kassym-Jomart Tokayev has described Kazakhstan’s push to build nuclear power plants as a correction of a “historical absurdity”, namely, that a nation which ranks among the world’s top producers and exporters of uranium has yet to harness this resource for domestic electricity generation. In October 2024, a nationwide referendum showed broad public support for the development of nuclear energy. Following the vote, Tokayev announced plans to construct at least two nuclear power plants, with a third to follow. In June 2025, Russian state corporation Rosatom was selected to build the country’s first nuclear power plant near the village of Ulken, on the western shore of Lake Balkhash, about 400 kilometers northwest of Almaty. Contracts for the second and third plants were later signed with the China National Nuclear Corporation (CNNC). “The construction of several nuclear power plants is, on the one hand, a correction of the historical absurdity – to be a world leader in the production of uranium and not to build any nuclear power plants, on the other, it is the prestige of Kazakhstan,” Tokayev said in an interview with Turkistan newspaper, published on the official Akorda website. According to Tokayev, reliable electricity generation is essential for Kazakhstan’s transition to a new technological model of the economy. He emphasized that the development of supercomputers, data centers, and automated industrial systems requires substantial energy resources. “This is the reality of the new global technological order,” he stated. Tokayev has consistently argued that Kazakhstan must become a digital power, framing digitalization as a matter of national survival. He believes society is mentally prepared for innovation, citing the success of fintech companies and the expansion of digital government services. “We have good starting conditions and have made progress in the digitalization of public services, fintech, and several sectors of the economy. The ecosystem supporting IT startups is functioning effectively,” the president noted. He added that for continued progress, Kazakhstan requires stable, environmentally friendly, and high-capacity energy sources, needs best met by nuclear power. Tokayev also highlighted the importance of personnel in building a nuclear energy sector. He said the development of nuclear power will contribute to the emergence of a new class of technical intelligentsia, which could ultimately influence state policy. “Qualified specialists are needed to create modern energy sources. The head of NVIDIA, the world's largest company by market capitalization, predicts that in the near future, multimillionaires will include representatives of technical professions, the so-called ‘blue-collar workers’,” Tokayev said. As previously reported by The Times of Central Asia, Kazakhstan plans to train nuclear energy specialists abroad through the Bolashak state program.

Logistics

U.S. Logistics Companies Look to Kyrgyzstan for Talent and Digital Solutions

Kyrgyzstan recently hosted CABXPO-2025, an international business and logistics forum that highlighted the country’s growing role as a point of interaction between Central Asia and global logistics markets. Held with the participation of the High-Tech Park, the forum brought together more than 500 companies from across the region. The Park, operational for over a decade, has become a key pillar of Kyrgyzstan’s expanding digital economy. One of the most notable aspects of CABXPO-2025 was the presence of senior executives and owners from major American freight companies. Their visit to Bishkek provided a platform for exchanging industry expertise, recruiting talent, exploring digital logistics solutions, and attracting Kyrgyz dispatchers to work with the United States freight market. According to Chubak Temirov, Deputy Director of the High-Tech Park, the forum stood out for its inclusion of investors from Silicon Valley, who expressed interest in identifying promising IT startups in Kyrgyzstan and other Central Asian countries. Nevertheless, a large portion of attendees represented transport and logistics businesses, particularly those operating in the U.S. market. Temirov noted that long-haul truck driving remains one of the most in-demand professions among Kyrgyz labor migrants heading to the U.S. and Europe. In recent years, several Kyrgyz nationals have successfully established their own transport companies in the U.S., managing fleets of hundreds of trucks. These examples of social mobility have become an important source of motivation for younger generations. [caption id="attachment_41411" align="alignnone" width="300"] @TCA[/caption] At the expo, several American companies with Kyrgyz roots were actively recruiting. Many base their dispatch operations in Bishkek or Osh while managing freight movements across the U.S. Forum participants were able to enroll in two-month dispatcher training programs, with company representatives offering employment upon completion. Aidar Abitov, a representative of a U.S.-based freight carrier, told The Times of Central Asia that his company operates more than 600 trucks and continues to expand. While the physical transportation takes place in the U.S., the company’s dispatch and technical support operations are located in Bishkek. Employees undergo training in areas such as cargo booking, transport coordination, and working with brokers, becoming official members of the U.S. company without leaving Kyrgyzstan. English proficiency remains a key requirement. The company’s medium-term goal is to support a fleet of 1,000 trucks. The forum also drew attention to IT innovations from Kyrgyzstan and Uzbekistan. A team from Tashkent showcased real-time software for monitoring cargo and vehicle fleets. The system tracks truck locations, vehicle condition, and driver behavior, including signs of fatigue or drowsiness. According to the developers, their solutions are already in use by thousands of logistics companies in the U.S., managing tens of thousands of trucks. One of the developers, Azimjon Akhmadjonov, told The Times of Central Asia that participating in CABXPO was primarily an opportunity to exchange ideas and build professional networks. He highlighted the role of such events in connecting Kyrgyz and Uzbek professionals working in the United States and in helping form a cross-border community of experts. The Kyrgyz government has positioned forums such as CABXPO as...

Advanced Technologies

Kazakhstan Turns from Pipelines to Processors

Kazakhstan’s strategic plan for advanced computing represents a diversification of its traditional oil, gas, and transit profile and of the wider national economy. A $2 billion Nvidia-linked initiative now turns on three main elements. First is a national supercomputer using Nvidia H200 chips, with headline AI performance around 2 exaflops. Second is a planned 100 MW data-center campus, designed to expand capacity for commercial users over several years. Third is a “sovereign AI hub” concept that promises long-term chip access for sensitive public-sector workloads. Prior to this package, Kazakhstan had already moved unusually quickly to build high-end AI and computing infrastructure, treating digital capacity as central to its development policy. The national supercomputer is now the most powerful system in Central Asia and is housed in a Tier III state data center intended for use by universities, startups, and corporate tenants. The hardware push accompanies a wider digital policy agenda, including new training programs with Nvidia to expand the country’s AI talent base. Parallel initiatives with the United States seek to anchor Kazakhstan more firmly within Western regulatory and connectivity frameworks, as part of a broader attempt to move beyond hydrocarbons and build domestic capability in computation-heavy activities. Kazakhstan’s New AI Statecraft Astana is presenting the Nvidia package as an economic instrument, not just a hardware upgrade. Senior officials now describe advanced computing as a new pillar of national development, on a par with hydrocarbons and transit. Recent policy statements frame AI and digital infrastructure as central, not a side theme of “innovation” policy. In parallel, the long-running “Digital Kazakhstan” agenda has moved from e-government and broadband roll-out into a second phase where data centers, national platforms, and specialized training come to the foreground. Within that shift, “sovereign AI” is becoming a core organizing idea. Officials and local specialists talk about national language models that can handle Kazakh, Russian, and other regional languages, and about keeping sensitive public-sector data on infrastructure under national jurisdiction. The new supercomputer and the sovereign AI hub are presented as the place where that work will happen at scale: training and serving models for government services, regulatory tasks, and domestic firms, rather than relying entirely on foreign platforms. The Nvidia partnership is therefore framed as a way to secure long-term access to leading chips for these “sovereign” workloads, even as global export rules tighten. The same initiative also underwrites a shift in Kazakhstan’s self-presentation from a “pipeline corridor” to Kazakhstan as a corridor for data and high-end digital services. The government has begun to link the sovereign AI hub and supercomputer to a set of fiber-optic projects across the Caspian that aim to tie Central Asia more tightly into Eurasian data routes. The same geography that once made Kazakhstan a crucial link for oil, gas, and rail freight can now make it a regional conduit for digital traffic and AI-enabled services. Kazakhstan is also using the package to deepen a specific diplomatic track with the United States. Joint announcements and working groups on digital transformation,...