UAE and Kazakhstan sign investment cooperation agreement in data center and AI projects

The Ministry of Investment of the UAE has signed a Memorandum of Understanding (MoU) with the Ministry of Digital Development, Innovations, and Aerospace Industry of the Republic of Kazakhstan as well as Sovereign Wealth Fund Samruk-Kazyna. This strategic agreement aims to create a framework for investment cooperation in data center and artificial intelligence (AI) projects in Kazakhstan.

The MoU was signed by His Excellency Mohamed Hassan Alsuwaidi, Minister of Investment of the UAE; His Excellency Bagdat Mussin, Minister of Digital Development, Innovations, and Aerospace Industry of the Republic of Kazakhstan; and His Excellency Nurlan Zhakupov, Chairman of the Management Board of Samruk-Kazyna, JSC.

Data centers are essential for organizations to store crucial data and operate applications. Kazakhstan, the largest economy in Central Asia, is witnessing substantial growth in its data center industry driven by increased demand for computing resources, progressive government policies and AI advancements. The country’s data center market is projected to grow at a 6.83 percent compound annual growth rate between 2024 and 2028, resulting in a market volume of USD 416.7 million.

The MoU between the UAE and Kazakhstan centers on establishing robust and efficient collaboration through the development of bilateral relationships between public and private organizations. The agreement also proposes introducing incentives to bolster relevant initiatives and seeks to facilitate the exchange of knowledge.

His Excellency Mohamed Hassan Alsuwaidi, Minister of Investment of the UAE, commented: “The agreement reflects our commitment to further strengthening relations between our two nations and working together to realize a shared vision for economic advancement. The planned investments in data center and AI projects in Kazakhstan will help enhance the nation’s expanding digital infrastructure, offering businesses more opportunities to embrace and gain advantages from digitization.”

His Excellency Nurlan Zhakupov, Chairman of the Management Board of Samruk-Kazyna, JSC, commented: “The establishment and growth of data centers is pivotal for Kazakhstan’s technological advancement. They serve as the backbone of innovation, fostering economic development, and propelling the nation into the forefront of the global digital landscape. Furthermore, the strategic development of data centers not only enhances domestic capabilities but also acts as a magnet for foreign investments, positioning Kazakhstan as an attractive destination for international businesses seeking a robust technological infrastructure.”

Kazakhstan’s exports to the UAE amounted to USD 560.34 million during 2022, while the UAE’s exports to Kazakhstan reached USD 1.69 billion.

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