Kazakhstan to Invest $10B in Nvidia-Backed AI Data Center
Kazakhstan has announced a significant investment of up to $10 billion to develop a large-scale artificial intelligence (AI) data center complex, dubbed the ‘Data Center Valley’, with backing from US chip manufacturer Nvidia and Armenian-American cloud provider Firebird.ai.
The project forms a central part of Kazakhstan’s ambitious Digital Qazaqstan strategy, which aims to transform the country into a leading digital economy by 2029. Through this strategy, Kazakhstan plans to leverage data, AI, and cutting-edge technology to overhaul public administration and accelerate digital infrastructure development.
‘Data Center Valley’ will be located near Ekibastuz in the northern Pavlodar region, an area chosen for its potential to support the project’s substantial power demand. The initial phase, valued at $5 billion, involves building a 125-megawatt data center scheduled to commence operations in 2027. Specific details regarding subsequent phases remain forthcoming.
Despite Kazakhstan currently facing a nationwide electricity generation deficit, officials are optimistic that the local power infrastructure can support the project. Presently, the area has a capacity of around 300 megawatts, with plans to expand to 1 gigawatt annually to meet growing needs.
Zhaslan Madiyev, Kazakhstan’s Deputy Prime Minister and Minister of Artificial Intelligence and Digital Development, highlighted the project’s strategic importance, stating that it will serve as a cornerstone for developing the country’s AI token economy. The government anticipates that the initiative will create high-skilled jobs, draw global tech companies to Kazakhstan, and generate at least $3 billion in annual export revenue.
This data center initiative marks a bold step toward positioning Kazakhstan as a key digital hub in Eurasia, leveraging partnerships with leading global technology firms to build national AI and cloud infrastructure from the ground up.
Digital Qazaqstan envisions a data-driven governance model integrating AI and cloud services to enhance public administration and economic sectors. The ‘Data Center Valley’ project is expected to be a critical enabler of this transformation by providing the necessary infrastructure to support AI applications and cloud technologies on a large scale.
Overall, the $10 billion investment underscores Kazakhstan’s commitment to fostering a knowledge-based economy and harnessing digital innovation to drive sustainable growth in the region.
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