Tech
Uzbekistan Unveils Major Incentives to Attract €85 Million in AI and Data Infrastructure Investment
Uzbekistan has announced a package of incentives to attract over €85 million in foreign investment for artificial intelligence (AI) and data infrastructure projects, with most developments planned for the country’s northwestern region of Karakalpakstan. The initiative, introduced through a presidential decree, is part of a broader strategy to build a fully integrated AI ecosystem by 2030.
The programme offers investors significant tax breaks, access to low-cost electricity, and support for renewable energy adoption. Companies will be required to commit their own capital while implementing energy-efficient solutions, including battery storage and low-water or water-free cooling systems. These measures aim to ensure sustainable operations while mitigating environmental pressures in a region long affected by the Aral Sea crisis.
Karakalpakstan, an autonomous region, has experienced severe environmental challenges following the shrinkage of the Aral Sea, including increased salinity, dust storms, and the exposure of the former seabed. Officials see high-tech and AI projects as a way to boost economic resilience, create jobs, and attract investment while revitalizing the local economy.
Kamola Sobirova, Advisor to the Minister of Digital Technologies, highlighted the region’s advantages for data centres, including abundant electricity, relatively cool temperatures averaging 12–14°C, and land availability suitable for large-scale infrastructure. The area also offers logistical benefits as a western gateway to Kazakhstan and access to the Trans-Caspian corridor, facilitating the export of AI computing power, cloud storage, and big data services.
The initiative is designed to integrate new projects into the broader technology ecosystem rather than creating isolated industrial sites. Project proposals will be assessed based on export potential, employment and training opportunities for local specialists, reliance on renewable energy, and operational stability. Authorities will also consider innovative solutions such as reusing residual heat from data centres for greenhouse agriculture or community development.
The AI and data infrastructure programme forms part of Uzbekistan’s national strategy to become a regional hub for digital technologies. According to government reports, the country has risen 17 places in the AI Readiness Index 2024, now ranking 70th out of 188 countries. By 2030, Uzbekistan aims to attract over €860 million in foreign investment, develop more than ten AI laboratories in partnership with academic institutions, and launch over 100 AI-based projects.
The strategy includes expanding technology clusters linking universities, start-ups, and industry, while integrating renewable energy to reduce emissions. The government projects IT service exports could reach €4.3 billion by 2030, positioning Uzbekistan as a competitive player in the global technology market.
Officials hope the incentives will not only accelerate the country’s AI ambitions but also drive socio-economic growth in Karakalpakstan, creating skilled jobs, supporting local industries, and strengthening Uzbekistan’s digital infrastructure for the coming decade.
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