digital economy - The Times Of Central Asia

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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,...

Opinion: Kazakhstan Bets Big on AI to Power Local and Global Growth

A bold vision for Kazakhstan’s future In his recent State of the Nation address, the President of Kazakhstan articulated a bold and ambitious future for the country. He presented a new vision, central to which was the announcement of artificial intelligence adoption and digitization as new national priorities, positioning them as essential for the country’s economic modernization and long-term competitiveness. The speech marked a significant moment for the government. Historically, much of its policy focus has been on managing risk and navigating regulatory uncertainty. Now, the administration is pivoting to focus instead on high-growth, innovation-led initiatives to build a more competitive and resilient Kazakhstan that can thrive in a rapidly changing global economy. In his address, President Tokayev announced the creation of the Ministry of Artificial Intelligence and Digital Development. Its initial mandate is to develop the Digital Code, a comprehensive framework that will set out how every sector of the economy, from finance and energy to education and healthcare, will integrate AI and digital tools in a structured and sustainable way. Leapfrogging into the digital economy Kazakhstan is embracing leapfrog innovation to harness tools such as AI and blockchain technologies to help accelerate economic growth and diversify its economy. This bet will ensure that the nation remains competitive for generations to come in a digital-led global landscape where technology leadership increasingly defines prosperity. Central to the project’s long-term success is the evolution of Kazakhstan’s educational system, and the country has recently approved its first national framework for integrating AI into its curriculum, signaling a major shift toward future-ready learning. This initiative covers areas including ethics, legal regulation, personal data protection, and academic integrity. Kazakhstan is now one of the first countries to adopt its own national approach in this field, having drawn on the recommendations of UNESCO, OECD, and the EU’s work to ensure global best practices. Building tomorrow’s AI leaders today From the 2025–2026 academic year, AI is being integrated throughout the curriculum with the aim of converting classrooms into technology-literate talent pipelines. Students will benefit from new online courses, while teachers will be supported with professional development programs (with over 11,000 teachers already trained and more to follow). Globally, the adoption of AI in education is surging. According to AllAboutAI, in 2025, 86% of students worldwide use AI in their studies, and half of all teachers will leverage AI for lesson planning. The market for AI in education is projected to reach over $2.7 trillion by 2033, having been valued at $177 billion in 2023. With nearly 30% of Kazakhstan’s population under the age of 15 and a median age of just 29, the country is well placed to transform its students into a new generation of professionals ready to contribute to the country’s technological evolution and global competitiveness. Universities such as the Astana IT University (AITU), International Information Technology University, and the Kazakh-British Technical University, all part of the NNEF ecosystem, are at the forefront of integrating AI across their curricula, ensuring that students gain the skills they need for the digital economy and innovation-driven...

digital economy

Kyrgyzstan and Binance Strengthen Partnership in Digital Economy Development

Kyrgyzstan and Binance, the world’s largest cryptocurrency exchange, have reaffirmed their commitment to deepening cooperation in the development of a secure and innovative digital economy. On October 6, Kyrgyz President Sadyr Japarov met in Bishkek with Binance Chief Marketing Officer Rachel Conlan to discuss ongoing and future collaboration. Japarov emphasized the country’s strategic priorities, noting that the National Council for the Development of Virtual Assets and Blockchain Technologies is currently working on a new digital asset, the KGST, which will be pegged to the national currency, the som. Concurrently, the National Bank of Kyrgyzstan is developing the digital som, a national digital currency, with plans to integrate it with the KGST to expand both domestic and cross-border applications. Conlan highlighted Binance’s global reach and extensive partner network as key assets in accelerating Kyrgyzstan’s digital transformation. She underscored the company's long-term commitment to supporting digital projects and educational initiatives in the country. The recent visit by Binance founder Changpeng Zhao to Kyrgyzstan brought international attention to the growing partnership. On May 3, Japarov and Zhao met to discuss the future of digital assets and blockchain in Kyrgyzstan. The agenda included the development of a national digital asset ecosystem, the integration of blockchain into public administration, and the strengthening of cybersecurity frameworks. During the meeting, Zhao agreed to support Kyrgyzstan’s digital transition by providing consultation and training for specialists working on the digital som project. He was also appointed public adviser to the President on digital asset development. The following day, Japarov chaired the first session of the National Council for the Development of Virtual Assets and Blockchain Technologies, where Zhao was officially confirmed as a Council member. The Council was established to shape unified state policies on virtual assets and advance their integration into governance and key economic sectors. In parallel, the National Investment Agency of Kyrgyzstan signed a Memorandum of Cooperation with Zhao. Under the agreement, Binance will support the development of blockchain infrastructure, the creation of a national cryptocurrency reserve, and training programs focused on blockchain technology, digital asset management, and cybersecurity. This growing partnership positions Kyrgyzstan as a regional leader in digital economy innovation, leveraging blockchain and virtual asset technologies to enhance public administration, economic governance, and global competitiveness.