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Data Centers in Kazakhstan

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Kazakhstan – The Strategic Gateway for Eurasian Transit

Executive Summary

Kazakhstan provides the vital terrestrial bridge between Europe and Asia, offering a specialized geographic advantage for high-capacity data transit. It is a premier choice for organizations requiring local sovereignty and low-latency access across Central Asia while maintaining a secure connection to Western China.

Kazakhstan: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBExpanding fiber capacity for regional and transcontinental transit.
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 due to massive reserves.
Disaster RiskLow (2.7/10) – as of September 2025Seismic activity is limited to the southern regions.
Tax IncentivesNo – as of September 2025Standard corporate framework applies with no sector-specific breaks.
Sales Tax12% VAT – as of September 2025Highly competitive rate compared to European markets.

Network & Connectivity Ecosystem

Kazakhstan manages a massive volume of transit traffic while supporting a modernizing domestic economy. The infrastructure provides a resilient alternative to subsea routes for East–West data flows.

Carrier Density & Carrier Neutrality: Carrier count: over 5 – as of September 2025. While national entities maintain a strong market position, private providers are increasingly visible in Almaty and Astana. Expect a range of 5–15 carriers offering diverse routing options for regional redundancy.

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. Enterprises typically 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. This localized peering significantly improves latency for government and consumer services – as of September 2025.

Bare Metal: High-performance dedicated infrastructure is available through regional specialists and global providers like Leaseweb. These options provide hardware for localized workloads requiring high uptime – as of September 2025.

Power Analysis

Energy in Kazakhstan is affordable, though the generation profile remains heavily weighted toward traditional sources.

Average Cost Of Power: Industrial electricity is priced at $0.04/kWh – as of December 2024. These rates provide a massive operational advantage for high-density deployments and large-scale compute projects. The energy mix is approximately 70% coal, 15% natural gas, 5% hydro, and 3% wind and solar – as of September 2025.

Power Grid Reliability: The national grid is well-engineered and manages a surplus in generation. Key data center corridors benefit from redundant substation support designed for heavy industrial loads.

Market Access, Business & Tax Climate

As the dominant economy in Central Asia, Kazakhstan acts as the primary entry point for regional digital services.

Proximity To Key Business Districts: Facilities are clustered in Almaty, the financial capital, and Astana, the administrative center. This positioning is vital for serving the banking, natural resources, and government sectors.

Regional Market Reach: A presence in Kazakhstan effectively covers the Central Asian region and provides a low-latency entry point for traffic targeting Western China.

Tax Advantage For Data Centers: The 12% VAT rate is the primary financial benefit for infrastructure operators. This relatively low tax burden helps manage the total cost of ownership in a market with low operational overhead – as of September 2025.

Natural Disaster Risk

The natural disaster risk for Kazakhstan is rated Low (2.7/10) – as of September 2025. Risks are generally localized rather than posing a systemic national threat.

  • River Flood: 7.6 – as of September 2025. This is the primary hazard, typically occurring during seasonal thaws near major river systems.
  • Drought: 6.1 – as of September 2025. Arid conditions in many regions require efficient cooling management for larger facilities.
  • Earthquake: 5.6 – as of September 2025. Seismic risk is concentrated in the southern regions around Almaty, demanding sturdy structural engineering for local facilities.
  • Epidemic: 3.6 – as of September 2025. A moderate factor that influences regional health and safety infrastructure planning.

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

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