Data Centers in Kazakhstan

Kazakhstan – Central Asia's Digital Crossroads

Kazakhstan is establishing itself as a key digital hub for Central Asia, offering exceptionally low power costs and a low-risk environment for infrastructure investment. This market is ideal for enterprises targeting resource industries and expanding their reach across the vast region between Europe and East Asia. Deploying here provides a strategic foothold for delivering services with improved latency and reliability.

Kazakhstan: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Kazakhstan supports a growing ecosystem of national and regional carriers. While a precise public count is unavailable, several providers operate within the country's 5 data centers as of September 2025, with carrier-neutral facilities primarily located in major cities like Almaty and Astana.

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 to major European hubs such as Frankfurt or Moscow via long-haul wavelength or IP transit services.

Internet Exchange Points (IXPs): The primary exchange is the Kazakhstan Traffic Exchange (KAZ-IX), which facilitates local traffic peering and helps reduce latency for domestic users. Most international peering occurs privately or through transit providers connecting to larger exchanges in Europe.

Bare Metal: Bare metal server options are available, offering dedicated compute for performance-sensitive workloads. Providers like Hivelocity and Leaseweb can service the region, often deploying from nearby European locations to balance cost and latency.

Power Analysis

Average Cost Of Power: The average industrial electricity price in Kazakhstan is exceptionally low, standing at approximately $0.04/kWh as of December 2024. This presents a significant operational cost advantage for energy-intensive computing. The country's energy mix is dominated by coal (~70%), with natural gas and hydroelectric power making smaller contributions.

Power Grid Reliability: The national power grid is generally stable in the primary economic centers where data centers are located. These facilities typically feature redundant connections to the grid and are equipped with standard N+1 or 2N UPS systems and backup generators to ensure consistent uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Kazakhstan are strategically located in or near Almaty, the financial capital, and Astana (Nur-Sultan), the government and administrative center. This proximity serves the nation's core banking, resource, and public sectors.

Regional Market Reach: Kazakhstan offers a digital gateway to serve not only its own population of over 19 million but also neighboring markets in Central Asia, including Uzbekistan, Kyrgyzstan, and parts of Southern Russia. Its position is critical for logistics and trade routes between China and Europe.

Tax Advantage For Data Centers: The primary financial advantage is operational, stemming from low energy costs rather than direct tax breaks. While there are no specific data center incentives, the standard 12% VAT is straightforward and predictable for businesses planning hardware importation and service delivery.

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. This rating indicates that while specific hazards exist, they are not typically widespread or of high intensity.

Key environmental risks for consideration include:

• River Flood: The highest individual risk factor, primarily affecting areas along the country's major rivers.
• Drought: A significant concern for agriculture and water management in the vast steppe regions.
• Earthquake: Seismic activity is a known risk, with the highest potential impact concentrated in the mountainous southeastern region, including the area around Almaty.