Data Centers in Kazakhstan
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Kazakhstan – Central Asia's Emerging Digital Crossroads
Kazakhstan is establishing itself as a key digital hub for Central Asia, offering exceptionally low power costs and a strategic location bridging Europe and Asia. For businesses targeting emerging markets in the region, Kazakhstan provides a cost-effective and low-risk environment for deploying infrastructure. This combination supports scalable growth and reliable connectivity for serving a vast and developing economic area.
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 is via network extensions to major hubs like Frankfurt or Moscow. |
| Power Cost | $0.04/kWh – as of December 2024 | Extremely competitive pricing driven by abundant local energy resources. |
| Disaster Risk | Low (2.7/10) – as of September 2025 | Minimal exposure to most catastrophic natural disasters. |
| Tax Incentives | No – as of September 2025 | No specific national incentives are currently offered for data center development. |
| Sales Tax | 12% VAT – as of September 2025 | A standard Value Added Tax applies to services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality Kazakhstan has a growing telecommunications market with major national and regional providers present in its 5 data centers, as of September 2025. While not as dense as primary European or Asian hubs, the environment supports carrier-neutral colocation, providing choice for transit and peering.
Direct Cloud On-Ramps There are no direct, in-country public cloud on-ramps from major providers, as of September 2025. Businesses connect to cloud regions by extending their networks via long-haul circuits to primary hubs such as Frankfurt, Moscow, or Dubai. Private and dedicated connections can be established to ensure secure, lower-latency access.
Internet Exchange Points (IXPs) The primary internet exchange is Kaz-IX, which facilitates local traffic exchange between networks within Kazakhstan. Peering at Kaz-IX reduces reliance on international transit for domestic data, improving performance and lowering costs for in-country users.
Bare Metal Bare metal server options are available, primarily through regional and local providers. These services offer dedicated compute resources for performance-sensitive applications, with providers like OVHcloud offering solutions capable of serving the region.
Power Analysis
Average Cost Of Power The average industrial electricity price is approximately $0.04/kWh, as of December 2024. This exceptionally low rate is one of the most significant advantages of deploying infrastructure in Kazakhstan, directly reducing operational expenditures for high-density compute.
Power Grid Reliability The national power grid is heavily reliant on coal (~70%), with contributions from natural gas and hydroelectric sources. In major cities hosting data centers, the grid is generally stable and supported by modern infrastructure. Data centers provide multi-layered redundancy with UPS and generator backups to guarantee uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data centers in Kazakhstan are primarily located in or near the major economic centers of Almaty and Astana (Nur-Sultan). These facilities serve the country's government, financial, and rapidly growing technology sectors, offering low-latency connectivity to core business operations.
Regional Market Reach Strategically positioned between China, Russia, and the Middle East, Kazakhstan serves as a digital gateway to Central Asia. Colocation here allows businesses to efficiently reach emerging markets in Uzbekistan, Kyrgyzstan, and other neighboring countries.
Tax Advantage For Data Centers The primary financial advantage is low operational cost, not tax incentives. While no specific data center tax breaks are offered, the overall business environment benefits from government efforts to attract foreign investment through other economic programs.
Natural Disaster Risk
Kazakhstan has a low overall risk profile for natural disasters, with an INFORM Risk score of 2.7 out of 10, as of September 2025. The country's landlocked geography eliminates threats from tsunamis, tropical cyclones, and coastal flooding.
Key risks to consider are primarily regional and specific:
- River Flood: The highest individual risk factor (7.6/10), mainly affecting areas along the country's major river systems.
- Drought: A significant concern (6.1/10) that can impact agriculture and water resources, though its direct effect on data center operations is minimal.
- Earthquake: A moderate risk (5.6/10), with seismic activity concentrated in the southeastern regions of the country, including the area around Almaty.
