Kazakhstan's new $10B AI deal is supported by NVIDIA
What's the story
Kazakhstan has signed a series of agreements with US-based start-up Firebird Inc. to develop artificial intelligence (AI) infrastructure. The projects, supported by NVIDIA, could see investments of up to $10 billion. These agreements include a strategic cooperation agreement and plans for a large-scale project called Data Center Valley in northeastern Kazakhstan.
Project details
Data Center Valley to be built in 2 phases
The Data Center Valley project will be developed in two phases. The first phase will see an investment of $5 billion, including $1 billion from state-run Kazakhtelecom. The facility, which will have a capacity of 125 megawatts, is expected to begin commercial operations by 2027. The second phase's timing and additional investments of about $5 billion are yet to be decided.
Strategic goal
Kazakhstan's push for AI infrastructure
Kazakhstan is trying to capitalize on its vast land, cheap energy, and strategic location between Asia and Europe. The country wants to use these resources as leverage in the global race for AI infrastructure development. This move is part of a larger strategy by Central Asia's largest economy to diversify beyond natural resources and establish itself as a regional center for advanced computing technologies.
Economic impact
Project to create computing cluster, generate export revenue
Deputy Prime Minister Zhaslan Madiyev said the project is expected to generate at least $3 billion in annual export revenue. It will also create new jobs, attract global tech companies, and strengthen Kazakhstan's position as a key digital hub in Eurasia. The project will also create a large-scale computing cluster with 100,000 of the latest-generation graphic processing unit chips such as NVIDIA's GB300 and Vera Rubin.