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Data Centers in Kazakhstan

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Kazakhstan – The Digital Gateway for Eurasian Transit

Executive Summary

Kazakhstan is the primary land-based data bridge between Europe and China, making it an essential hub for high-capacity Eurasian transit. It offers a strategic physical footprint for organizations needing local sovereignty and low latency across Central Asia. By leveraging its central geography, businesses secure a resilient link in one of the most critical emerging digital corridors.

Kazakhstan: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBSolid regional performance with expanding fiber-optic capacity.
Direct Cloud On-Ramps0 – as of September 2025Nearest hubs are Frankfurt or Moscow via private extensions.
Power Cost$0.04/kWh – as of December 2024Extremely low industrial rates driven by massive coal reserves.
Disaster RiskLow (2.7/10) – as of September 2025National risk is minimal, though seismic activity affects Almaty.
Tax IncentivesNo – as of September 2025No sector-specific incentives currently available for data center operators.
Sales Tax12% VAT – as of September 2025Competitive rate compared to neighboring markets and European standards.

Network & Connectivity Ecosystem

Kazakhstan serves as the central nervous system for terrestrial fiber routes connecting East and West. The infrastructure here manages massive transit volumes while supporting a rapidly digitizing domestic economy.

  • Carrier Density & Carrier Neutrality: Carrier count: over 5 – as of September 2025. While national entities hold significant market share, private providers are increasingly visible in Almaty and Astana.
  • Direct Cloud On-Ramps: 0, enabling access to 0 cloud regions – as of September 2025. There are no local physical on-ramps for AWS, Google Cloud (GCP), Microsoft Azure, Alibaba Cloud, Oracle Cloud, or IBM Cloud. Most enterprises use dedicated waves or private network interconnects to reach Frankfurt.
  • Internet Exchange Points (IXPs): The KAZ-GOV-IX and local exchanges in Almaty ensure domestic traffic remains within national borders, significantly reducing local latency – as of September 2025.
  • Bare Metal: Dedicated infrastructure is readily available from regional specialists and global providers like Leaseweb, offering high-performance hardware for localized workloads – as of September 2025.

Power Analysis

Energy in Kazakhstan is affordable but remains heavily dependent on traditional generation methods.

  • Average Cost Of Power: Industrial electricity is priced at $0.04/kWh – as of December 2024. This pricing provides a significant operational edge for power-hungry high-performance computing. The energy mix consists of 70% coal, 15% natural gas, 5% hydro, and 3% wind and solar – as of September 2025.
  • Power Grid Reliability: The grid is well-engineered and benefits from a domestic generation surplus. Major data center corridors are supported by redundant substations capable of handling heavy industrial loads.

Market Access, Business & Tax Climate

As the dominant economy in Central Asia, Kazakhstan serves as a gateway for regional trade and digital services.

  • Proximity To Key Business Districts: Data centers are concentrated in Almaty, the financial capital, and Astana, the administrative center. Close proximity to these hubs is essential for serving the banking, government, and natural resources sectors.
  • Regional Market Reach: A presence in Kazakhstan effectively covers the entire Central Asian region and provides a low-latency entry point for traffic moving for Western China.
  • Tax Advantage For Data Centers: The 12% VAT rate is the primary financial benefit for operators and clients. This lower-than-average rate helps manage total cost of ownership even in the absence of specialized industry tax holidays – as of September 2025.

Natural Disaster Risk

The natural disaster risk for Kazakhstan is rated Low (2.7/10) – as of September 2025. Risk is generally localized rather than a national concern.

  • River Flood: 7.6 – as of September 2025. This is the highest natural hazard, particularly in regions near major river systems during seasonal thaws.
  • Drought: 6.1 – as of September 2025. Large portions of the country are arid, necessitating efficient cooling management for large facilities.
  • Earthquake: 5.6 – as of September 2025. Seismic risk is concentrated in the southern regions near Almaty, requiring resilient structural engineering.
  • Epidemic: 3.6 – as of September 2025. A moderate factor that has influenced regional health and safety infrastructure planning.

Other natural hazards like tropical cyclones or coastal flooding are not applicable to this landlocked geography. Facilities in the northern steppe regions typically face fewer seismic concerns than those in the south.

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