Kazakhstan's AI data center plan faces energy deficit challenge
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Kazakhstan aims to turn Ekibastuz into a 'Data Center Valley' to attract billions of dollars in AI infrastructure investment. The project requires vast electricity supplies, but the country currently faces an energy deficit. First data centers are scheduled for 2027, while the Energy Ministry expects a sustainable surplus only by 2029.
Project Scale and Location
The 'Data Center Valley' will be located near the Ekibastuz GRES-1 coal-fired power plant. Investors are offered prepared sites, water and telecom access, and direct connection to the plant at electricity rates of about $0.025 per kWh. The project is planned to start at 300 MW and expand to one gigawatt, with tax incentives and 10-20 year take-or-pay contracts.
Investor Interest and Agreements
President Kassym-Jomart Tokayev said Amazon and UAE-based G42 have 'started taking their places' in the project ecosystem, though specific terms remain undisclosed. A more concrete deal was signed with US-based Firebird to build a computing cluster using NVIDIA technology, valued at $10 billion and involving 100,000 modern GPUs. Expected export revenue is at least $3 billion annually, with launch targeted for 2027.
Energy Supply Risks
The project's success hinges on synchronizing data center construction with new power plants and grid upgrades. Kazakhstan currently faces an electricity deficit, and the Energy Ministry does not expect a sustainable surplus until 2029. Managing director of Atameken, Zhakyp Khairushev, noted that the timeline for new generation capacity remains uncertain.
What's Next
The first data centers are scheduled to come online in 2027, but the Energy Ministry's projected surplus is not expected until 2029. It remains unclear whether power generation and grid infrastructure can be built fast enough to meet the project's demands.
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Kazakhstan's AI data center plan faces energy deficit challenge
