Digital Infrastructure - The Times Of Central Asia

Viewing results 1 - 6 of 21

Digital Finance

Opinion: Tajikistan’s Digital Finance Boom Faces Its Next Challenge – Keeping Money Digital

Tajikistan’s e-wallet numbers are striking. As of June 30, 2026, 28 credit financial institutions reported 19.8 million electronic wallets, up 25.9% from a year earlier. In the first half of 2026, e-wallets were used for 14.6 million non-cash transactions worth 3.6 billion somoni. But those figures should not be read as if 19.8 million people are actively using wallets. The National Bank of Tajikistan’s published aggregate data do not state how many wallets belong to unique users or how many are active. Nor do they show how usage is distributed among them. Without that denominator, the headline figure tells us much less about actual use. Tajikistan has clearly expanded digital access. It now needs a clearer picture of usage and stronger reasons for people and businesses to keep money inside the digital system. I call this the shift from digital access to digital retention. The headline number is 19.8 million wallets out of an official population of 10.721 million as of January 1, 2026. The more useful number would be how many are meaningfully active. Do Not Confuse Registration With Usage A registered wallet is an access point, not proof of financial behavior. One person may hold several wallets, and some may sit dormant. Usage may also be concentrated among a smaller group of frequent users. Without active-wallet and unique-user data, none of those possibilities should be assumed as fact. What we can say is that non-cash activity is growing. The National Bank reports that cashless payments for goods and services made with electronic payment instruments reached 41% in the first half of 2026, 13 percentage points higher than a year earlier. It also reports 9,425 POS terminals at trade and service points and 33,620 QR codes. That 41% figure covers electronic payment instruments, including bank cards and e-wallets. It is not an e-wallet usage rate. To understand how wallets are actually being used, Tajikistan needs a clearer view of active wallets, transaction frequency, and what happens to money after it enters a digital account. Trust Is Part of the Infrastructure For many people, the move from cash to bank cards was already a significant behavioral change. They learned to trust money represented by a balance on a screen rather than notes in a hand. Wallets, QR payments and app-based financial services require another layer of trust. Users need to know where their money is and whether a payment went through. They also need a clear route when something goes wrong. Fees should be easy to understand. This is why simplicity is part of financial trust, not merely user experience. Tajikistan’s Financial Literacy Program for 2026–2030 makes the same connection at a policy level. It links financial literacy and consumer protection with public confidence as digital financial services expand. A good digital-finance service should be usable by ordinary people without making money feel harder to understand. Users should not need fintech expertise to trust the product. Merchants Need a Reason Not to Cash Out Consumers are only one part of...

Data Center Valley

Kazakhstan Sets June 2027 Launch for First Data Center Valley Facility

Kazakhstan expects to launch the first facility at Data Center Valley, a large data center campus in the country’s northeast, in the summer of 2027. The government says the first 50 MW object now under construction is due to enter service in June 2027, while the site is ultimately planned to expand to as much as 1 GW. Earlier plans put the first 125 MW center in the first half of 2027; the latest statement does not explain how the 50 MW object fits into that figure. The project is aimed not only at domestic demand: Kazakhstan wants to attract foreign technology companies and is also exploring the possibility of hosting data belonging to other countries. The first data center is already under construction in the Pavlodar region, one of Kazakhstan’s main energy-producing areas. The main buildings are scheduled to be completed by the end of 2026, with commissioning work to be finished in May and the launch planned for June 2027. A 215 MW substation has been acquired to supply the site with electricity. The choice of region is primarily linked to access to electricity. The Pavlodar region is home to Ekibastuz, one of Kazakhstan’s largest power-generation centers, with a vast coal basin and major power plants. For data centers, particularly GPU clusters used for artificial intelligence, access to large and stable power supplies is critical. The stated 1 GW capacity is a long-term target rather than capacity already under construction. The campus is expected to expand gradually as customers are secured. Plans call for data centers, GPU clusters for AI, and cloud services to be hosted at the site. Among the project’s foreign partners is U.S.-based Firebird AI, which works with NVIDIA technologies. In April 2026, representatives of the two companies held talks in Astana on the development of AI infrastructure, high-performance computing, and data centers. Firebird AI later reached agreements on cooperation within the Data Center Valley project. The Times of Central Asia previously reported on plans to create a large computing facility in Kazakhstan using NVIDIA technologies. Technology companies may not be the only potential clients. The government is also developing the concept of a Data Embassy, which could allow foreign governments to store data in Kazakhstan while retaining legal sovereignty over it. Such a model already exists. Estonia established its data embassy in Luxembourg, where servers remain under Estonian state control and are used to store critical data and help maintain government digital services in the event of cyberattacks or other major crises. The two countries signed an agreement on the data embassy in 2017. Kazakhstan’s Data Embassy concept is still being developed. It is being considered alongside Data Center Valley, but the government has not said that foreign states’ sovereign data would necessarily be stored at the Ekibastuz campus. Data Center Valley itself is intended to host computing capacity and cloud services for international clients. Foreign investor interest in Kazakhstan’s data center market is not limited to this project. Singapore-based GK Hyperscale Ltd plans...

Trans-Caspian Cable

Kazakhstan and Azerbaijan Begin Laying Trans-Caspian Fiber-Optic Cable

Kazakhstan and Azerbaijan have begun laying a fiber-optic cable across the Caspian Sea, marking the start of offshore construction on a long-planned digital connection between Central Asia and the South Caucasus. A specialized cable-laying vessel has departed the Port of Baku and begun laying the line toward Aktau, the Ministry of Artificial Intelligence and Digital Development of Kazakhstan announced. Weather permitting, the underwater installation is expected to take 15 to 20 days. Testing and commissioning are scheduled to be completed by the end of 2026. The 380-kilometer cable will connect Sumgait in Azerbaijan with Aktau in western Kazakhstan. It will be capable of transmitting up to 400 terabits of data per second, according to AzerTelecom. The full system, including testing and commissioning, is scheduled to be completed by the end of 2026. The project is being implemented by CaspiLink B.V., a joint venture established by Kazakhstan’s Kazakhtelecom and Azerbaijan’s AzerTelecom. It forms part of the Digital Silk Way initiative, a planned telecommunications corridor linking Asia and Europe. Preparatory work included surveys of the Caspian seabed and the selection of a route avoiding anchorage areas and military exercise zones. The armored cable was manufactured and tested in China before being delivered to the Kazakh port of Kuryk and transported to Baku for installation. As previously reported by The Times of Central Asia, the project had entered active implementation after several years of delays and changes among the participating companies. The cable was first proposed in 2019, although earlier completion targets were not met. Once operational, the link will provide a direct subsea data route between Kazakhstan and Azerbaijan. It will also expand Kazakhstan’s capacity to carry internet traffic between Asian and European networks.

Artificial intelligence

Tokayev Offers Astana to Host New Global AI Body’s First Meeting

President Kassym-Jomart Tokayev put Astana forward at the opening of the World Artificial Intelligence Conference in Shanghai on July 17, saying that Kazakhstan is ready to host the first meeting of a new global AI organization. He also proposed placing the organization’s Central Asian office in Kazakhstan. Together, the offers set out Tokayev’s wider aim: Kazakhstan wants a role in writing AI rules as well as building the technology at home. Twenty-nine countries signed the agreement establishing the World AI Cooperation Organization on July 16. The founding states included Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan, while Turkmenistan did not sign. China first proposed the Shanghai-based intergovernmental body at last year’s conference. Tokayev called the creation of the organization a historic decision and said it could underpin a universal framework for AI governance. “No country should remain merely a consumer of AI,” he said. “Every state must have the opportunity to develop its own human capital, digital infrastructure, and institutional capacity. Here too, the issue is fairness and integrity.” Tokayev also endorsed the conference’s guiding principle, “AI for good, AI for all,” arguing that technological progress should benefit people broadly rather than deepen inequalities within and between countries. His offer to host the new organization’s first meeting in Astana and to establish its Central Asian office in Kazakhstan were aimed at giving the country a role in shaping that agenda. [caption id="attachment_52389" align="aligncenter" width="2560"] Image: Akorda[/caption] Astana Bids for a Role in the New AI Body Tokayev’s proposals went beyond hosting a ceremonial gathering. He called for a permanent expert platform on AI regulation, standards and ethics. He also proposed an international network of schools, centers of excellence and academic partnerships. The Kazakh president urged members to develop common standards for testing and certifying AI systems. He said safeguards should address malicious uses, including cyberthreats, deepfakes and digital fraud. AI should remain under human control, he said. Tokayev placed those proposals within his wider diplomatic agenda. He argued that AI could help spot crises earlier and improve humanitarian work and peacekeeping. He said governments spend too much effort dealing with conflicts after they begin and too little preventing them. The new organization adds another layer to Kazakhstan’s technology policy. Citing a person familiar with the U.S. position, Reuters reported that Kazakhstan is the only country listed in both the 29-member body and Washington’s AI Opportunity Statement. Kazakhstan had already joined the U.S.-backed Pax Silica framework on June 25, which covers chips, critical minerals, energy and secure AI supply chains. That overlap carries Kazakhstan’s long-standing multi-vector diplomacy into AI policy. Astana is deepening ties with China while expanding ties to U.S.-linked technology and supply chains. Tokayev’s speech showed that Kazakhstan also wants a voice in the institutions shaping global AI rules. A Digital Bridge With China In Shanghai, Tokayev also proposed a “Kazakhstan-China Digital Bridge.” He said the project should promote digital trade and provide a working model for connecting digital economies through the Belt and Road Initiative. He asked China to support...

Digital Infrastructure

Kazakhstan and China Sign Deals Worth Over $15 Billion During Tokayev’s Shanghai Visit

Kazakhstan and China signed more than 70 commercial agreements worth over $15 billion during President Kassym-Jomart Tokayev’s working visit to Shanghai on July 16. The package covers artificial intelligence, digital infrastructure, transport, finance, agriculture, vehicle production, and other high-technology industries. The documents were exchanged after a roundtable with Chinese executives. Akorda did not publish a full project-by-project valuation, and the package includes both agreements and memoranda. The headline figure represents the announced value of the documents rather than money already invested or spent. AI and Industrial Projects Among the main documents was a strategic partnership agreement between Kazakhstan’s Ministry of Artificial Intelligence and Digital Development and Huawei Technologies. The Samruk-Kazyna sovereign wealth fund signed a separate agreement to acquire Huawei technology and equipment. Samruk-Kazyna, Freedom Holding, the Astana city administration, and Geely Auto Group also signed a memorandum on electric-vehicle infrastructure and the use of artificial intelligence in Kazakhstan’s automotive industry. Kazakhtelecom and China’s HV & Submarine Hengtong Group agreed on the basic principles for developing the Data Center Valley project in Ekibastuz. The planned one-gigawatt cluster is intended to combine data centers, cloud services, supercomputing facilities, AI laboratories, research institutions, training programs, and technology startups. Further agreements covered robotics and research. Qazbot Technologies signed a strategic cooperation agreement with Agibot PTE, while the Almaty city administration, NERO Group, and UBTECH Robotics agreed to develop artificial intelligence and robotics in the city. Qazaq AI Research University and the Shanghai Innovation Institute signed a cooperation memorandum. The industrial package includes an agreement between Allur Group and Li Auto to produce Li Auto vehicles in Kazakhstan. Astana Group and Chery Holding signed a technology licensing agreement for OMODA and JAECOO production at the Astana Motors Manufacturing Kazakhstan plant. Qarmet, the Development Bank of Kazakhstan, and a Chinese engineering company also agreed to cooperate on new coke oven batteries and a gas purification system. Transport and Logistics An investment agreement was signed for the first phase of a multifunctional terminal at the Port of Kuryk. Another document covers cooperation on two logistics parks at Khorgos-Eastern Gate, while Kazakhstan’s Ministry of Industry and Construction and NUCTECH agreed to work on inspection systems at border checkpoints and expand local production. Tokayev said around 85% of rail freight between China and Europe passes through Kazakhstan and that the country has invested more than $35 billion in transport and logistics infrastructure over the past 15 years. He also promoted the Smart Cargo platform, which is designed to combine customs, logistics, and commercial services in one digital system. The president also invited Chinese companies to invest in the extraction and deeper processing of critical minerals, agricultural technology, and the development of Alatau City. The government wants the new city to become a regional center for digital finance, asset tokenization, artificial intelligence, and advanced telecommunications. Tokayev said bilateral trade reached a record $49 billion in 2025, cumulative Chinese investment in Kazakhstan exceeded $30 billion, and more than 8,500 companies with Chinese participation operate in the country. Existing joint projects...

AI Data Center

Kazakhstan Says $10 Billion AI Data Center Project Is Moving Into Deployment

Kazakhstan says a $10 billion AI data center project in Ekibastuz is moving into deployment. Prime Minister Olzhas Bektenov told President Kassym-Jomart Tokayev on July 13 that partners were rolling out 250 megawatts of infrastructure. He said the project had attracted more than $10 billion in foreign investment. The statement gives firmer shape to a plan announced only six months ago. The northern-eastern Kazakh city of Ekibastuz grew around coal mines and giant power stations, but after the collapse of the Soviet Union, jobs disappeared, leaving the city to live in the shadow of its industrial peak. It has shared the wider population decline across the country’s north and east: despite fresh investment, the city lost more than 1,000 residents during 2025. The government now wants the city to export computing power as well as electricity, using its industrial grid to draw global AI companies to northern Kazakhstan. The site has moved beyond planning documents. By May 25, crews had completed geodetic work and started engineering and geological surveys. Workers were excavating pits for modular blocks, while equipment and personnel had reached the site. Tokayev announced the Data Center Valley in January as part of Kazakhstan's wider digital drive. The first 125 MW center is due in the first half of 2027, with a second facility of the same size planned for 2028. Bektenov has said all government data now sits in a 6 MW center in Astana, which shows the jump in scale. Those first two centers are only the beginning of a much larger development. Pavlodar officials have allocated 177 hectares, including 124.4 hectares for the opening phase. They expect later centers to enter service between 2029 and 2033, with up to ten facilities across the completed cluster. The site could eventually reach 1 GW, while an earlier government estimate put total investment near $30 billion. The first center will draw power from an existing 215 MW substation. Across the wider development, officials say 300 MW is already available, with capacity eventually rising to 1 GW. The Satpayev Canal will supply water for staff and site operations, with daily use estimated at 2,300 cubic meters. Separate reserves will be kept for fire protection. NVIDIA Vice President Rev Lebaredian put the case plainly in June: “Everything begins with energy. If you do not have energy, you cannot build the rest.” He added that Kazakhstan had energy “in abundance.” In Ekibastuz, cold that once made industrial life harder is being recast as a commercial advantage. The harsh winters can help cool server halls that produce vast amounts of heat. The planned Trans-Caspian fiber cable would then link the city’s abundant power to a faster international data route. That promise is still built on coal. Thermal plants generated 74.4% of Kazakhstan’s electricity in 2025, with the country still importing nearly 1.5 billion kilowatt-hours from Russia to cover the shortfall. A 250 MW data-center complex running day and night would consume about 2.19 billion kilowatt-hours a year, roughly 1.8% of Kazakhstan’s total...