Data Centers in Kazakhstan
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Kazakhstan – Strategic Digital Bridge in Eurasia
Executive Summary
Kazakhstan presents a compelling opportunity for businesses targeting Central Asia and neighboring regions. Its extremely low power costs and low natural disaster risk provide a stable and cost-effective environment for deploying digital infrastructure. This strategic location enables companies to reduce latency and improve service delivery to a vast and growing market.
Kazakhstan: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Developing international connectivity with improving terrestrial routes. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access via private network extensions to major European or Asian hubs. |
| Power Cost | $0.04/kWh – as of Dec 2024 | Significantly below global averages, driven by a coal-heavy energy mix. |
| Disaster Risk | Low (2.7/10) – as of September 2025 | Primary risks are seismic activity and drought in specific regions. |
| Tax Incentives | No | No specific data center incentives are currently promoted. |
| Sales Tax | 12% VAT – as of September 2025 | Standard Value Added Tax rate applies to services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Kazakhstan's connectivity market is developing, with a growing number of national and regional carriers available. As of September 2025, the country has 5 data centers, with carrier-neutral facilities primarily located in Almaty and Astana, offering diverse connection options.
Direct Cloud On-Ramps: As of September 2025, there are no direct cloud on-ramps within Kazakhstan. Secure, high-performance access to hyperscale clouds like AWS, Google Cloud, and Azure is achieved through private network connections to major hubs such as Frankfurt, Moscow, or Hong Kong.
Internet Exchange Points (IXPs): The primary internet exchange is the Kazakhstan Traffic Exchange (KAZ-IX). It facilitates local traffic peering, reducing latency and improving domestic network performance for end-users.
Bare Metal: Bare metal server solutions are available, providing dedicated, high-performance compute resources for demanding workloads. Providers such as phoenixNAP and Leaseweb offer deployment options in the region.
Power Analysis
Average Cost Of Power: The average industrial electricity cost in Kazakhstan is approximately $0.04/kWh as of December 2024. This extremely low rate offers significant operational cost savings for high-density compute deployments and large-scale infrastructure.
Power Grid Reliability: The power grid in major economic centers is reliable for commercial operations, though it is supported by a grid that is approximately 70% coal-powered. Data centers in Kazakhstan use redundant power sources, including enterprise-grade UPS systems and backup generators, to ensure high uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers are located in or near Almaty, the country's financial center, and Astana, the capital. This ensures low-latency connectivity to government services, financial institutions, mining operations, and the growing technology sector.
Regional Market Reach: Kazakhstan serves as a digital gateway to over 70 million people across Central Asia. Its strategic position also allows for effective service delivery into parts of Russia and Western China.
Tax Advantage For Data Centers: Kazakhstan does not offer specific tax incentives for data center investment. The primary financial advantage comes from the country's low operational costs, particularly for power, rather than direct tax breaks.
Natural Disaster Risk
Kazakhstan has a Low overall natural disaster risk profile, with an INFORM Risk score of 2.7 out of 10 as of September 2025. The primary environmental hazards are geographically specific and can be mitigated with proper site selection for infrastructure.
The key risks to consider are:
- River Flood: 7.6
- Drought: 6.1
- Earthquake: 5.6 (Primarily in the southern and eastern mountainous regions)
