Digital Infrastructure - The Times Of Central Asia

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Kazakhstan and U.S. AI Companies Sign Agreements Worth $10 Billion

Kazakhstan took a major step toward its goal of becoming an AI leader in the heart of the Eurasian continent when new investment deals were signed with U.S. companies NVIDIA and Firebird. Kazakh Prime Minister Olzhas Bektenov hosted NVIDIA Vice President Rev Lebaredian and Firebird co-founders Razmig Hovaghimian and Alexander Yesayan on June 15. They signed agreements on artificial intelligence and digital infrastructure cooperation worth up to $10 billion, for Kazakhstan’s Data Center Valley project. Top Ten in Global AI Infrastructure Representatives of the U.S. companies and Kazakh officials at the signing ceremony paid tribute to Kazakh President Kassym-Jomart Tokayev for declaring 2026 the Year of AI in Kazakhstan, saying the move emphasized Kazakhstan’s commitment to AI development. Firebird’s Hovaghimian said realization of the agreements signed on June 15 would contribute to putting Kazakhstan in the top 10 leading AI countries worldwide before the end of 2027. Lebaredian described AI development as a “five-layer cake.” “The first layer is energy. The second layer is chips, including those from NVIDIA. The third layer is infrastructure. The next layer is AI models, such as ChatGPT,” and applications, he explained. The NVIDIA vice president said, “Kazakhstan can participate at every level of this five-layer cake.” An Old Power Source for Developing New Technology In the first phase of the project, some $5 billion will go to developing the energy sector. The Data Center Valley is located in Kazakhstan’s northern city of Ekibastuz in the Pavlodar Province. The area has long been known for its vast coal deposits and huge Soviet-era thermal power plant that provides electricity to the area. Kazakh officials have promised an initial 300 megawatts (MW) of power for the AI center, with output gradually rising to some 1000 MW. Kaztelekom chief Bagdat Musin was at the signing and said, “Essentially, Kazakhstan is transforming Ekibastuz coal into digital export revenue.” Minister of Artificial Intelligence and Digital Development Zhaslan Madiyev said Kazakhstan expects to “generate at least $3 billion in annual export revenue, create new high-skilled jobs, (and) attract leading global technology companies.” Discussions are still underway about exactly how the remaining $5 billion would be spent in developing the second phase of the project. Madiyev mentioned that when finished, Ekibastuz would host a “large-scale computing cluster powered by 100,000 state-of-the-art GPU (graphics processing units) chips, including NVIDIA GB300 and Vera Rubin.” A press release posted by Firebird noted the “three-phase expansion strategy” would enable the project “to scale beyond 100,000 NVIDIA Blackwell and Vera Rubin GPUs by the end of 2027, creating one of the world’s largest AI computing platforms.” Firebird Labs Kazakhstan will also be established, based on Kazakhstan’s International Center for Artificial Intelligence in the capital, Astana. Era of Expanding Kazakh-U.S. Ties The agreements with NVIDIA and Firebird are the latest in a series of deals with U.S. companies since late 2025. President Tokayev announced the plan for the Data Center Valley project in January 2026. In May, a U.S.-linked international consortium signed a deal worth some $1 billion...

Data Centers

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.

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.

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...

Aitu Messenger

Kazakhstan Considers National Messaging App Aitu for Insurance Companies

Kazakhstan’s Agency for Regulation and Development of the Financial Market is considering the use of the domestic messaging platform Aitu for remote communication between insurance companies and other non-bank financial institutions and their clients. According to Bloomberg, the regulator has recommended that market participants consider using the Kazakh-developed messenger Aitu as a communication tool. Sources cited by the publication said that insurance and brokerage firms received proposals last month regarding the potential use of the platform, partly aimed at strengthening personal data protection. Market participants expressed concerns, pointing to Aitu’s relatively small user base, limited functionality, potential integration costs, and the absence of clear regulatory guidelines for handling personal and financial data on such platforms. In response, the regulator clarified that the use of Aitu is not being considered mandatory, but rather as an additional secure communication channel between financial institutions and their clients. “This issue is being considered by the Agency in connection with the need to strengthen information security, including the protection of personal data amid rising fraud in financial services. The initiative is also aimed at standardizing communication channels between financial organizations and their clients,” the agency said in a statement. According to the regulator, Aitu’s infrastructure ensures a high level of data protection, in part due to the physical localization of servers within Kazakhstan. This, it argues, reduces risks associated with cross-border data transfers and potential interception of financial information. Additional security features include end-to-end encryption, with access keys stored only on users’ devices, as well as the Aitu Passport system, which incorporates biometric identification and a cloud-based electronic digital signature. The regulator states that these tools provide legally valid user verification and help minimize risks such as phishing and identity theft. The agency also noted that the use of open APIs and business dashboards would allow financial institutions to integrate their systems with the platform at relatively low cost, making use of national digital infrastructure. Government agencies and quasi-state companies had earlier been encouraged to adopt Aitu for official communications. As previously reported by The Times of Central Asia, the rollout of the national messenger has sparked broader debate over the balance between cybersecurity and internet freedom in Kazakhstan.

Internet disruptions

Internet Outages Reported Across Turkmenistan Since February

Since February, widespread internet disruptions across Turkmenistan have affected both business operations and daily life. According to reports by the independent outlet turkmen.news, the issue is not limited to routine website blocking but involves broader interference with data transmission. Sources cited by the outlet suggest that a mechanism described as “network degradation” is being used. This reportedly involves the intentional reduction of data transfer reliability rather than simply restricting access to specific online resources. The Cybersecurity Agency and the telecommunications company Ykjam Aragatnaşyk have been mentioned in this context. According to these accounts, a significant share of internet traffic may fail to reach its destination. Estimates cited by sources indicate that packet loss could range from 30% to as much as 70% in some cases. “If, instead of the advertised 6 Mbps, subscribers simply experienced a reduction in speed, the inconvenience might be manageable. However, when data packets are lost during transmission, connectivity becomes unstable, making effective internet use extremely difficult,” one source told the outlet. In practice, users report that web pages often fail to load fully or display error messages, requiring multiple refresh attempts. Tasks that previously took seconds can now take minutes or longer. Services that depend on stable connections, including video conferencing platforms such as Zoom, are reportedly among the most affected. Although the reported restrictions are said to target external internet traffic, their impact has also been felt within domestic infrastructure. On March 10, banking services across the country were reportedly disrupted, with users experiencing difficulties withdrawing cash or making card payments. Communication has also been affected. Users report delays in sending messages through mobile applications, while some areas have experienced disruptions to mobile services. Businesses are said to be incurring additional costs, communication with foreign partners has become more difficult, online classes have been canceled, and access to essential online resources has been limited.