Kazakhstan has announced a $10 billion artificial intelligence data center initiative, leveraging partnerships with Nvidia and Firebird to position the nation as a key player in the global AI infrastructure market. The project, part of the broader Digital Qazaqstan strategy, aims to convert the country's energy resources into high-value digital services.
Project Details and Timeline
The first phase of the project, valued at $5 billion, includes a 125-megawatt data center in Ekibastuz, a northeastern coal and power hub. Commercial operations are targeted for 2027. The initial investment includes $1 billion from state-owned telecom Kazakhtelecom, with the remaining $4 billion expected from other sources. A second $5 billion phase has not yet been scheduled.
Strategic Partnerships
The initiative was unveiled on June 15, following a meeting between Prime Minister Olzhas Bektenov and Nvidia Vice President Rev Lebaredian, along with Firebird executives Razmig Hovaghimian and Alexander Yesayan. Kazakhstan's AI ministry signed a strategic cooperation agreement with Firebird, while Kazakhtelecom signed a binding term sheet for the Data Center Valley project.
Infrastructure and Capacity
Ekibastuz currently has 300 MW of available capacity, with plans to expand to 1 GW across the site. The government envisions a "Data Center Valley" that could eventually host up to 1 GW of power. A separate Nvidia B300-based supercomputing cluster is set to go live in Kosshy in October, boosting Kazakhtelecom's supercomputer capacity by four times.
Economic Impact and Risks
Deputy Prime Minister Zhaslan Madiyev expects the project to support a cluster with 100,000 GPUs, generating at least $3 billion in annual export revenue, attracting skilled jobs, and drawing international tech firms. However, risks remain significant. Kazakhstan faces a nationwide power deficit, though officials believe Ekibastuz can handle the early stages. Financing, chip supply, and long-term power availability are open risks. The second phase timeline is uncertain.
Market Context
Kazakhstan is racing to catch up with Firebird and Nvidia's existing AI project in Armenia, where the first phase is nearly complete with construction and equipment delivery. The country aims to move faster and larger, leveraging its energy assets and state infrastructure push. The project aligns with the government's plan to complete 16 infrastructure projects worth 3.3 trillion tenge in 2026, including new rail lines, power plants, and a fiber-optic cable along the Caspian Sea.
Nvidia's Lebaredian emphasized the importance of energy, stating, "Everything begins with energy," and argued Kazakhstan can enter the AI value chain by converting power, land, and tech talent into compute. Kazakhtelecom's Bagdat Mussin noted that Firebird has service agreements with major global customers, though names were not disclosed.
