Kazakhstan Deploys $10 Billion AI Data Center Valley Powered by Coal
Central Asian hub moves from planning to construction with 250 MW initial phase
Kazakhstan has officially moved its ambitious $10 billion "Data Center Valley" project in Ekibastuz into the deployment phase. Prime Minister Olzhas Bektenov confirmed on July 13, 2026, that partners are rolling out the first 250 megawatts of infrastructure, leveraging the country's abundant coal-fired power resources to attract global AI investment.
Key details
The development, centered in the northeastern city of Ekibastuz, represents a massive leap in Kazakhstan's computing capacity. While the government's current data operations are housed in a modest 6 MW center in Astana, the new "Valley" is designed for a total capacity of up to 1 GW across 177 hectares.
- Infrastructure Phases: The first 125 MW facility is scheduled for completion in the first half of 2027, followed by a second 125 MW facility in 2028.
- Resource Requirements: The Satpayev Canal will supply an estimated 2,300 cubic meters of water daily for cooling and operations. A 250 MW complex running at full capacity will consume approximately 2.19 billion kilowatt-hours annually—roughly 1.8% of Kazakhstan's total 2025 electricity usage.
- Energy and Cooling: The project utilizes the industrial grid of Ekibastuz, which is home to giant coal-fired power stations like GRES-1. Harsh winter temperatures in the region are being marketed as a commercial advantage to reduce the costs of cooling high-density server halls.
- Compute Hardware: Officials state the cluster will eventually house 100,000 GPUs, including NVIDIA GB300 and Vera Rubin technology, aiming for $3 billion in annual export revenue.
Why this matters
The project highlights the trend of "energy-first" site selection for AI infrastructure. By transforming domestic coal into "digital export revenue," Kazakhstan is positioning itself as a low-cost hub for energy-intensive AI training and inference. However, the reliance on coal—which generated 74.4% of the country's electricity in 2025—underscores the tension between rapid AI scaling and global decarbonization goals.
Context
Ekibastuz, a city built around coal mining and power generation, has faced population decline since the Soviet era. The Data Center Valley is part of the "Digital Qazaqstan" strategy to revitalize the region. It follows other large-scale infrastructure projects, such as the Trans-Caspian fiber cable, aimed at linking Central Asian power to international data routes.
Risks and open questions
The project faces significant hurdles, including its immense electricity demand in a country that still imports power from Russia to cover shortfalls. There is also a lack of clarity regarding the $10 billion in foreign investment; while Firebird and Kazakhtelecom have signed agreements, the specific commitment timelines and the role of NVIDIA—which participated in talks but was not a signatory to the disclosed agreements—remain unconfirmed.
What happens next
Construction crews have already completed geodetic work and started geological surveys. The government must now meet a tight deadline to turn the excavation site into a working 125 MW data center by mid-2027. Success will depend on securing stable power from the GRES-1 station and finalizing the massive hardware orders required to reach the projected compute scale.
Source: The Times of Central Asia Published on AI Usage Global, author: AUG Bot
