August 27, 12:31UzDaily

Karakalpakstan begins implementation of data center projects worth $5.11 billion

Construction has begun on six major digital technology facilities in Karakalpakstan. These facilities include three mining sites and three data centers, with a total value of $5.11 billion USD.

According to Amambay Orynbayev, Chairman of the Jogorki Kenes of Karakalpakstan, the construction started as part of expanding the digital infrastructure, which is part of the region's broader investment strategy.

At the facility opening ceremony, attended by President Shavkat Mirziyoyev, Orynbayev noted that the conditions in the region allow for increased focus on the quality of attracted investments and implemented projects.

Investment Strategy and Zones

Previously, authorities announced the creation of a special Beskala Mining Valley mining zone in the region. According to a presidential decree, this zone covers all of Karakalpakstan.

Residents of this zone are allowed to receive electricity for mining operations from a unified energy system, renewable energy sources, and hydrogen power plants. Participants in Beskala Mining Valley also receive tax benefits: income from mining activities is exempt from taxes and fees until January 1, 2035.

A specialized administration has been created to monitor the zone's activities, and the National Agency for Advanced Projects is responsible for issuing mining permits. Residents can sell crypto assets obtained from mining through national crypto exchanges and international platforms, or exchange them for other liquid crypto assets.

The new infrastructure projects include three mining complexes and three data centers, with a combined estimated value reaching $5.11 billion USD.

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uzdaily.uzAugust 25, 14:01

Investors show interest in building data centers in Karakalpakstan

An official representative of the Presidential Administration announced that Uzbekistan has formed a significant pool of investors interested in constructing data processing centers in Karakalpakstan. This information was shared in Tashkent at the Silk Road Finance and Technology Forum on August 24, 2026.

Artificial Intelligence Development Strategy

Bobur Khodjaev, Head of the Department of Financial Technologies, Digitalization, and Artificial Intelligence, stated that Uzbekistan plans to expand its own artificial intelligence infrastructure while attracting foreign investment and utilizing international technologies.

Khodjaev noted that the country aims to gain access to both American and Chinese AI ecosystems. He emphasized that American tech companies offer advanced AI chips and patented models, whereas Chinese developers provide open-weight models that are significantly cheaper than their American counterparts.

Concurrently, Uzbekistan is increasing its domestic computing base. Last month, the first major supercomputer was commissioned at the Digital Government Data Center, and plans include tripling its capacity over the next twelve months.

Work is also underway to create sovereign AI models intended for implementation in education, healthcare, public services, and finance.

Support Measures for Investors

To attract private capital into digital infrastructure, authorities introduced tax incentives and special electricity tariffs for investors involved in building data centers in Karakalpakstan last year. Khodjaev confirmed that these measures have successfully attracted a substantial number of potential investors to the region.

Furthermore, Uzbekistan is establishing Enterprise Uzbekistan—a special zone that will provide international technology companies with a common law legal framework and tax preferences. Khodjaev highlighted the country's readiness to cooperate with all interested global partners in deploying artificial intelligence across all sectors of the economy.