Kazakhstan Builds "Data Center Valley" for Central Asia Tech Hub

Kazakhstan is building Data Center Valley near Ekibastuz, a massive digital campus aimed at making the nation a premier data hub for Central Asia. By offering ultra-low-cost power, significant tax incentives, and strategic, high-speed connectivity, the project is designed to attract major technology companies. Construction is underway on a project poised to multiply the region's computing power and generate thousands of jobs. With new fiber optic routes shortening data transit between Asia and Europe, Kazakhstan is positioning itself to become the top destination for data centers as established hubs like Dubai or Singapore become saturated.

What is Data Center Valley in Kazakhstan and why is it significant?

Data Center Valley in Kazakhstan is a government-backed digital campus near Ekibastuz, engineered to scale from an initial 100 MW to a full 1 GW by 2030. It leverages ultra-low electricity costs, comprehensive tax exemptions, and state-of-the-art connectivity to establish Kazakhstan as a new, globally competitive data center hub for Central Asia.

This spring, construction began on the substantial site south of Ekibastuz that the government has named Data Center Valley. Designed to scale from 100 MW in its first year to a full gigawatt before 2030, it represents a major digital infrastructure project in Central Asia, with incentives tailored to attract hyperscale investment.

Power first, paperwork second

Data Center Valley is a government-backed digital campus designed to scale from 100 MW to 1 GW by 2030. Located near Ekibastuz, it leverages ultra-low electricity costs, significant tax exemptions, and advanced connectivity to attract major technology companies and establish Kazakhstan as a regional data hub.

Resource	Valley offer	Typical EU/US benchmark
Electricity price	Significantly lower rates	Industry standard rates
Land lease	Substantial tax benefits	Standard market rates
Corporate income tax	Major tax exemptions	Standard corporate rates
Sub-station distance	Close proximity to GRES-1	Typical urban distances
Water for cooling	Dedicated supply line	Shared municipal

These advantages are outlined in the official project prospectus on mangystau.invest.gov.kz and were confirmed by the Prime Minister's office. A key advantage is speed: greenfield sites can begin construction rapidly after signing agreements.

Kazakhstan is prioritizing energy allocation over real estate transactions to accelerate development.

Entry models designed for hyperscaler DNA

Investors can select from three streamlined entry models:

• Wholesale colocation: Mid-scale halls pre-configured to Tier III specifications (target PUE 1.25).
• Greenfield build-to-suit: Large-scale plots with state-financed civil works.
• Power-only anchor: Utilize a pre-trenched 220 kV ring connection for custom-built shells.

Each model is governed by a special investment contract that guarantees regulatory stability and freezes customs duties for the contract's lifetime.

Why Ekibastuz beats Frankfurt on latency

A new fiber optic cable from Xinjiang to the Caspian Sea is planned to be operational before the first server racks go live. This route, documented in the Times of Central Asia, is expected to shorten data transit from Asia to Europe compared to existing paths. This gives the valley a competitive advantage for any workloads sensitive to cross-continental latency.

To understand the scale, industry reports suggest that Central Asia currently hosts a limited number of server racks. At one gigawatt, the valley alone could support a substantial number of modern racks, significantly expanding the region's computing capacity.

Jobs and economic impact

Phase	Construction jobs	Permanent ops & R&D
100 MW	Significant workforce	Growing permanent staff
300 MW	Expanded workforce	Substantial permanent staff
1 GW	Large workforce	Major permanent operations

To build a skilled workforce, the government has partnered with Kazakhtelecom and the Alem.AI training hub in Astana to develop AI specialists.

If timelines hold, the valley will establish Kazakhstan as a default overflow site for data center capacity when hubs like Dubai or Singapore face power and space constraints.

Ecosystem already on the ground

While the main valley is under construction, several smaller satellite projects are already in development, creating an initial ecosystem:

Project	Capacity	Status	Partner
Kosshy supercomputer	Significant capacity	Hardware deployment planned	Kazakhtelecom
EXPO sphere → Alem.AI	Research labs	Development underway	Samruk-Kazyna
China-Kaz green DC	Major capacity planned	Agreement signed	CEIC
CryptoCity pilot	Pilot capacity	Regulatory approval received	MinDigitalDev

These nodes connect to the same state-grade fiber ring, creating a unified digital fabric. This allows a hyperscaler to burst workloads into Astana labs while the primary valley facilities are still coming online.

What happens next

Government outreach teams have already presented term sheets to multiple global cloud providers and GPU-fleet owners. Even before breaking ground, several soft letters of intent have been secured. With its combination of low-cost power, tax holidays, and a ready-to-build site, the valley has streamlined the typical hyperscaler site selection process into an accelerated timeline.