Kazakhstan Bets $10 Billion on AI With Nvidia-Backed Data Center Valley
June 17, 2026
Kazakhstan Bets $10 Billion on AI With Nvidia-Backed Data Center Valley
Kazakhstan has signed a landmark $10 billion agreement with US chip giant Nvidia and Armenian-American cloud provider Firebird.ai to develop a massive "Data Center Valley" in the northern Pavlodar region. The project is a cornerstone of the country's Digital Qazaqstan strategy, which aims to accelerate AI adoption, cloud infrastructure, and data-driven governance through 2029. Officials estimate the initiative could generate at least $3 billion in annual export revenue while attracting global technology firms and high-skilled jobs.
Phase 1 of the deal, valued at $5 billion, involves the construction of a 125-megawatt (MW) data center near the city of Ekibastuz, with operations expected to begin in 2027. Details for Phase 2 remain under discussion, but the government has outlined plans to scale up to 1 gigawatt of annual capacity in the coming years. Despite a nationwide electricity deficit, officials say the area around the envisioned hub currently has 300 MW of available capacity sufficient to meet growing power needs.
“Kazakhstan is systematically building a national infrastructure for AI development. The 'Data Center Valley' project will serve as a key platform for the new AI-token economy,” said Zhaslan Madiyev, Kazakhstan’s deputy prime minister and minister of artificial intelligence and digital development. Speaking at the June 15 signing ceremony, Madiyev added: “We estimate that the project’s implementation will generate at least $3 billion in annual export revenue, create new jobs, attract global technology companies, and strengthen Kazakhstan’s position as a key digital hub in Eurasia.”
Firebird and Nvidia are already collaborating on a major AI initiative in Armenia, where Phase 1 is nearing the final stage of construction and equipment deployment. Firebird CEO Razmik Ovakimian emphasized the company’s ability to rapidly deploy cutting-edge US technologies. “The launch in 2027 will position Kazakhstan among the top 10 leading countries in the world,” a Kazakh government statement quoted him as saying.
The Data Center Valley project is expected to transform Kazakhstan’s digital ecosystem, shifting from automation of individual services to integrated, data-driven governance. By anchoring the country as a digital hub in Eurasia, the initiative aims to compete with established data center markets and attract international investment in AI and cloud services.
Source: oilprice
