Kazakhstan's AI Bet: Data Center Valley's First Data Center to Launch in June 2027
Central Asia Column “Steppe Ahead,” by Thomas Baier
$10 billion, 100,000 AI chips, and ultimately 1 gigawatt of computing power: Kazakhstan’s major project, Data Center Valley, now has a firm launch date. In June 2027, the first data center with a capacity of 50 megawatts is scheduled to go online in Ekibastuz, northern Kazakhstan. This was reported on August 13 by the English-language regional newspaper *Times of Central Asia*, citing the government in Astana. The structural work is scheduled to be completed by the end of 2026, with technical commissioning set to be finished by May 2027.
Earthwork 90% Complete, 215 MW Substation Secured
According to the Asian data center industry portal W.Media, earthwork for energy centers and AI factories is 90% complete. The project has secured a 215-megawatt substation for its power supply. The facility is being built in accordance with the international Tier III reliability standard. The project is backed by the state-owned company Kazakhtelecom, the American-Armenian AI company Firebird, and the U.S. chipmaker NVIDIA. The partners signed a $10 billion agreement in June 2026. It calls for a computing cluster with 100,000 AI chips from NVIDIA’s latest GB300 and Vera Rubin generations. The first data center is the first of four expansion phases, each with a capacity of 50 megawatts. The total area near Ekibastus covers 1,400 hectares. President Tokayev has declared 2026 the Year of Digitalization and Artificial Intelligence, and the Valley is its most important individual project. The government estimates the targeted investment in the entire campus at around 30 billion U.S. dollars and anticipates the creation of 500 highly skilled jobs. “The Data Center Valley is shaping Kazakhstan’s new export potential. By establishing computing power within our own country, we are creating the conditions for the growth of domestic AI solutions and attracting global companies,” said Shaslan Madiyev, Deputy Prime Minister and Minister of Artificial Intelligence and Digital Development.
Coal-Fired Electricity from Ekibastuz as a Location Advantage
The location is no coincidence. Ekibastus is situated in Kazakhstan’s largest coal-mining region, right next to the GRES-1 and GRES-2 power plants. Cheap and abundantly available electricity is the scarcest commodity in the global race for AI data centers. The government cites an energy efficiency metric (PUE) of 1.25 for the campus, a competitive figure. Kazakhtelecom has also reduced network latency on international routes from 80 to 57 milliseconds. “Kazakhstan is turning Ekibastus coal into digital export revenue,” said Kazakhtelecom CEO Bagdat Mussin at the contract signing in June. NVIDIA Vice President Rev Lebaredian added: “Kazakhstan has energy. Because the country has it in abundance and can generate even more, it’s an excellent place to start.” The project is already attracting other investors. According to the Times of Central Asia, Singapore-based GK Hyperscale is planning two data centers with a combined capacity of 200 megawatts in the Akmola and Karaganda regions. SuperX AI Technology is evaluating an AI data center complex with up to 1 gigawatt of capacity. The Valley also offers a greenfield zone with 100 megawatts of connected capacity for foreign companies. At the same time, according to the Times of Central Asia, Astana is working on a concept for so-called “data embassies”: Foreign governments should be able to store their data in Kazakhstan without relinquishing sovereignty over it. The model for this is Estonia, which has been operating such a data embassy in Luxembourg since 2017.
Export Target of $3 Billion: A Tripling in a Short Time
The government expects export revenues of at least 3 billion US dollars per year from the sale of computing power. The benchmark for this: Kazakhstan’s total IT services exports are projected to reach approximately $1 billion in 2025, up from $690.7 million in 2024—an increase of 31%. This export target thus represents a tripling of the current IT sector driven solely by the Valley. Three questions remain unanswered. First, the energy balance: Coal-fired electricity makes computing power cheap but negatively impacts the carbon footprint of potential major Western clients. Second, demand: The government has not yet mentioned any contracts with paying customers for computing capacity. Third, the timeline: Between the completion of the shell of the building at the end of 2026 and reaching full capacity at 1 gigawatt, there will be years during which the global market for AI data centers will be even more fiercely competitive than it is today. Firebird CEO Razmig Hovaghimian remains confident. According to him, the 2027 launch will place Kazakhstan among the top ten countries in AI infrastructure. If the project succeeds, it will provide Kazakhstan with a new export pillar alongside oil, gas, and metals. The region is watching closely: Uzbekistan is also courting international investors for digital infrastructure.
Source: Times of Central Asia, W.Media, Government of the Republic of Kazakhstan, Government of Kazakhstan on project data, Government of Kazakhstan on investment volume, Times of Central Asia on IT exports (all EN)