Kazakhstan - The Times Of Central Asia

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Kazakhstan Digitalization Singapore AI Agreement data center

Singapore to Build Two Data Centers in Kazakhstan

Singaporean firm GK Hyperscale Ltd will participate in the construction of two major data processing centers (DPCs) in Kazakhstan's Akmola and Karaganda regions, according to Minister of Digital Development, Innovation and Aerospace Industry Zhaslan Madiev. Speaking at the AlmatyFair.ai exhibition, Madiev informed Kazakh President Kassym-Jomart Tokayev and his Uzbek counterpart Shavkat Mirziyoyev of Kazakhstan’s plans to expand the use of artificial intelligence (AI) across industrial and social sectors. He emphasized that large-scale AI deployment requires robust infrastructure, including high-capacity data centers. To this end, two centers with a combined capacity of 200 megawatts will be built with Singaporean investment. During the same event, an investment agreement was signed between the Kazakh government and GK Hyperscale Ltd. The deal will bring $1.5 billion in foreign direct investment to construct Tier 3-compliant data centers, an international standard defined by the Uptime Institute that ensures high reliability and availability. According to the ministry, these facilities will provide essential infrastructure for the growth of cloud computing, AI, and high-performance computing in Kazakhstan. “This project, in both scale and quality, will attract global technology giants such as Microsoft, Google, and Amazon, as well as companies specializing in big data and AI,” Madiev said. “It will bolster Kazakhstan’s position as a digital hub in Central Asia and drive the expansion of IT service exports.” An additional $1.2 billion will be invested in acquiring and upgrading a power plant to serve the new infrastructure. Funds will also support the construction of a wind farm and an energy storage system to ensure a stable power supply. Construction is scheduled to begin in the first quarter of 2026, with the first data center module expected to come online in 2027. As The Times of Central Asia previously reported, Kazakhstan is also developing legislation to regulate artificial intelligence, ensuring human oversight in its application.

Kazakhstan Extremism Sports Federations Prevention

Kazakhstan Mandates Sports Federations to Help Detect Extremism

Sports federations in Kazakhstan will now be required to assist in preventing extremism and terrorism, under new provisions in the updated Law “On Physical Culture and Sport.” The amendment stems from concerns over the growing influence of religious movements in the sports environment, according to Vice-Minister of Tourism and Sports Serik Zharasbayev. Speaking to reporters on the sidelines of a Senate session, Zharasbayev explained that the measure is being implemented in cooperation with the National Security Committee. “This provision was introduced in collaboration with the National Security Committee due to the need to address emerging risks. We are working within the framework of the Anti-Terrorist Center and have already developed a roadmap through 2027,” he said. Previously, sports federations were not involved in national security matters, but Zharasbayev stated that “the time has come” for them to take part in identifying potential threats and reporting relevant information to state authorities. Currently, the focus is strictly on preventive measures. In April, specialists from the Anti-Terrorist Center will begin traveling to the regions to provide detailed briefings on the new requirements. “By the end of April or early May, we’ll meet with all federations to clarify these norms. For now, it's solely about prevention,” he added. The government also plans to involve theologians with experience in countering extremist ideologies as part of the outreach. The urgency of the issue was underscored by President Kassym-Jomart Tokayev during the fourth session of the National Kurultai in Burabay in early March. “Mazhilis deputy Yermurat Bapi has raised concerns about the country’s religious climate. Kurultai members Daniya Kydyrbayeva and Olzhas Suleimen have also noted the growing influence of non-traditional religious movements among youth, especially in the sports sector,” Tokayev said. He reaffirmed that while freedom of religion is constitutionally protected, “disorder and permissiveness are unacceptable.” The president called for preventing destructive ideologies and using regulatory frameworks to promote national unity. The new obligation for sports federations is part of a broader legislative package recently passed by the Senate in two readings. According to Deputy Asem Rakhmetova, the amendments aim to improve legal frameworks in the field of physical culture and sports, while also clarifying the division of powers between central and local executive bodies as part of ongoing administrative reforms. In total, the bill modifies two codes and five laws. Similar concerns have arisen outside Kazakhstan. In Russia, State Duma deputy Sergei Mironov recently requested that the Prosecutor General’s Office investigate MMA clubs for possible links to radical groups. He warned that the “uncontrolled functioning” of such organizations could pose a threat to state security, citing reports that terrorists involved in the Crocus City Hall attack had trained at one such club. Kazakhstan’s sports organizations are now being tasked with responsibilities beyond their traditional scope. As Zharasbayev put it, “Federations must pay attention to such risks”, and this is no longer optional, but a formal obligation under the law.

Kyrgyzstan Kazakhstan Earthquake

Two Earthquakes Strike Kazakhstan and Kyrgyzstan, Causing Damage in Talas Region

Two earthquakes struck Central Asia early on March 28, affecting parts of Kazakhstan and Kyrgyzstan. The first tremor, with a magnitude of 5.5, occurred in southern Kazakhstan, approximately 133 kilometers from Bishkek. The Kyrgyz capital felt the tremors at 4:42 a.m., according to the Institute of Seismology at the National Academy of Sciences of Kyrgyzstan. The quake registered a strength of four points in Bishkek and reached up to five points in parts of Kyrgyzstan’s Talas Region, which borders Kazakhstan. A second, less powerful earthquake was recorded at 7:00 a.m. on the Chatkal Ridge in southwestern Kyrgyzstan. It registered a magnitude of 3.5. According to the Kyrgyz Ministry of Emergency Situations, five residential buildings and one educational institution sustained damage in the Talas Region following the first quake. An operational team has been dispatched to assess the extent of the damage. “A state of emergency has been declared in connection with the earthquake recorded in Kazakhstan on March 28. An emergency meeting was held at 5 a.m. at the central office of the Ministry of Emergency Situations and the Crisis Management Center of Kyrgyzstan. First Deputy Minister of Internal Affairs Azamat Mambetov instructed officials to maintain a high alert regime,” the ministry's press service reported. No casualties have been reported. Authorities have stated that the situation remains under control. Kyrgyzstan’s Crisis Management Center is in direct communication with its counterpart in Kazakhstan, with both agencies exchanging real-time updates. Two major earthquakes were also recorded on March 28 in Southeast Asia. Seismologists from China and the United States reported tremors affecting Myanmar and Thailand. In Myanmar, the first quake registered a magnitude of 7.9 (with other sources citing 7.7), followed by a second at 6.4. The tremors were also felt in Bangladesh, India, Thailand, Laos, and China.

Foreign Athletes Kazakhstan Sport Funding

Kazakhstan Senate Approves Ban on Budget Funding for Foreign Athletes

The Senate, Kazakhstan’s upper house of parliament, has passed amendments to the Law on Physical Culture and Sports that ban the use of state funds to finance foreign athletes, commonly known as "legionnaires." The bill is now awaiting President Kassym-Jomart Tokayev’s signature to become law. Ending State Support and Introducing Salary Caps Kazakhstan’s efforts to reduce foreign dominance in national sports date back to 2020. Initial measures included capping the number of foreign players allowed on the field in football and hockey, as well as restricting their funding through state budgets. However, according to Vice-Minister of Tourism and Sports Serik Zharasbayev, these regulations, embedded in competition rules and government resolutions, have not been consistently enforced at the regional level. The new legislation aims to enshrine these restrictions in law. “Regarding the financing of legionnaires: the bill prescribes a prohibition on funding these individuals from the state budget and quasi-governmental sector. However, funding from extra-budgetary sources, such as sponsorships, remains permissible,” Zharasbayev explained. The law will also empower the Ministry of Tourism and Sports to set financial limits for clubs in football, hockey, and other team sports. “This legislation will allow us to define how much each club is eligible to receive from the budget and to cap salaries of football and hockey players accordingly,” the Vice-Minister said. He added that the savings would be redirected to support grassroots youth sports, although he could not specify the projected amount. Budget Caps for Sports Clubs While specific funding limits have yet to be determined, Zharasbayev noted that the combined annual allocation from national and regional budgets is about 400 billion KZT (approximately $797 million). Currently, football and hockey clubs may receive up to 1.2 billion KZT (around $2.4 million) annually, while other sports, such as basketball and volleyball, are capped at 450 million KZT ($897,000). “For the 14 clubs in the Kazakhstan Premier League, a cumulative 30 billion KZT was allocated in 2024. It’s within this sum that we aim to identify potential savings,” Zharasbayev said. He reported that 325 foreign players competed in Kazakhstan’s three professional football divisions last year. Some have since obtained Kazakhstani citizenship, making them eligible for state funding. The new law, however, will apply only to future contracts. “Existing contracts will remain in effect until their expiration, as the law is not retroactive. Still, we have advised clubs not to sign new contracts with foreign players starting in 2025,” Zharasbayev stated. He also emphasized the need to regulate domestic athletes’ salaries, citing “unreasonably high payments” as a growing concern. A separate legal act is in development to address the issue. Scandals Within the Football Federation The legislation comes amid ongoing investigations into financial misconduct under the previous leadership of the Kazakhstan Football Federation. The Prosecutor General’s Office reported violations amounting to 3 billion KZT (nearly $6 million), including unjustified bonuses, misused funds for infrastructure, questionable player transactions, and embezzlement related to athlete meals. Specifically, over 300 million KZT ($597,000) in unwarranted bonuses were issued, and more than...

Foreign Investment Economy Kazakhstan Investments

Kazakhstan Aims to Nearly Triple Investment in the Economy by 2029

Kazakhstan plans to significantly increase investment in its economy over the next five years, aiming to nearly triple current levels. However, officials from the Ministry of National Economy acknowledge that the primary challenge lies not in securing additional funds but in the shortage of high-quality investment projects. Shortage of Viable Projects At a recent meeting of the Expert Council under the Ministry of National Economy, Deputy Minister Arman Kasenov stated that the ratio of domestic investment to GDP currently stands at a modest 14-15%, a figure he described as objectively low. “To achieve higher rates of economic growth, investments need to increase 2.75 times, from $40 billion in 2024 to $103 billion by 2029,” Kasenov stated. To help reach this target, the government plans to allocate KZT 1 trillion (approximately $2 billion) through the state holding company Baiterek to stimulate business lending. This amount is expected to catalyze additional credit lines totaling KZT 8 trillion (around $15.9 billion). Still, Kasenov stressed that financing alone is not enough. “The real issue is the lack of quality projects,” Kasenov said. “This problem has been flagged by international development finance institutions. When we talk about increasing investment from $40 billion to $103 billion, it’s not just about capital, it's about where and how that capital is deployed.” Targeting High-Return Sectors To ensure impactful investment, the Kazakh government is prioritizing support for highly productive and export-oriented projects. These are concentrated in key sectors such as metallurgy, oil and gas, petrochemicals, and agriculture. Rustam Karagoyshin, the head of Baiterek Holding, outlined the financing model for investment projects, which consists of 60% market funding and 40% state-backed lending. In 2025, Baiterek plans to disburse a total of KZT 8 trillion in project financing, with KZT 3.75 trillion (around $7.4 billion) provided in the national currency. “Our main objective is to unify lending rates at 12.6% for end consumers. Standardizing rates will enable second-tier banks to participate across nearly all sectors where Baiterek operates today,” Karagoyshin said. Foreign Investment Outlook As The Times of Central Asia previously reported, Kazakhstan is looking to attract more foreign direct investment following a notable decline in 2023. Amid growing concerns about resource nationalism, the government is eager to position itself as a stable and attractive destination for international capital.

Kazakhstan Critical Minerals ranking Global Market

Kazakhstan Strengthens Position in Global Critical Minerals Market

Kazakhstan has the potential to ensure a stable supply of critical minerals essential for the global energy transition and the expansion of the electric vehicle market, according to analysts at the Astana International Financial Center (AIFC). An AIFC study highlights Kazakhstan’s competitive advantages in exporting copper, zinc, aluminum, silver, and lead. Additionally, nickel, gold, lithium, and rare earth metals are seen as promising sectors for export expansion. Kazakhstan holds a 5% share of the global zinc market, ranking seventh in reserves with 6.7 million tons. In 2022, Turkey, Russia, and China accounted for 70% of Kazakhstani zinc exports. The country also controls about 4% of the global copper market, with 20 million tons in reserves, placing it 11th worldwide. Its main copper buyers in 2022 were China, Turkey, and the UAE. Kazakhstan ranks eighth globally in lead reserves (2 million tons) and 12th in production, with 40,000 tons mined in 2021. Global lead demand is projected to rise from 11.6 million tons in 2022 to 13.4 million tons by 2031. In the silver market, Kazakhstan holds the third-largest reserves, accounting for 2.7% of global supply. In 2023, Kazakhstan ranked 11th in global bauxite reserves (160 million tons) and 10th in production (4.3 million tons), though its aluminum market share remains below 1%. The primary destinations for aluminum exports are Turkey, Italy, and Greece. Meanwhile, Kazakhstan is among the world’s top 20 nickel-producing countries, holding reserves of approximately 1.5 million tons, or 2% of global reserves, though its market share remains small. The country is also actively exploring lithium deposits in collaboration with companies from Germany, the UK, and South Korea. In March 2024, South Korean specialists discovered a lithium deposit in East Kazakhstan with a content of 5.3%, valued at an estimated $15.7 billion. Kazakhstan has also strengthened its position in the critical minerals market through international agreements. It recently signed a contract with the European Union worth €3 million for the supply of essential raw materials.