BAKU, Azerbaijan, March 16. President of
Kazakhstan Kassym-Jomart Tokayev has declared 2026 the Year of
Digitalization and Artificial Intelligence. The main goal of the
government is to introduce modern technologies across all sectors
of the economy.
At the same time, the large-scale plans for digital
transformation are accompanied by structural challenges, including
energy issues and the need for deep modernization of public
administration.
According to data from relevant authorities, by the end of 2025,
high-speed internet had been installed in about 2,600 rural
settlements in Kazakhstan, and in 2026 access is planned for
another 1,900 villages. At the same time, data processing
infrastructure is being developed: in Almaty and Astana, two new
data centers with a capacity of 7.4 MW have already been launched,
and in 2026 the launch of three data centers with a total capacity
of 12.9 MW is planned.
The growth of digital services is also becoming a noticeable
economic factor. Through the eGov Mobile application alone, more
than 54 million public services were provided in 2025, and exports
of Kazakh IT services reached approximately $1 billion.
Nevertheless, digitalization in Kazakhstan has developed
unevenly. In a number of sectors, including housing and utilities,
construction, industry, and agriculture, outdated management and
production processes still persist. This means that technological
modernization requires not only the introduction of new solutions
but also a fundamental restructuring of the institutional
environment.
An important step in this direction was the adoption of the
country’s Digital Code and the law “On Artificial Intelligence.”
These documents form the legal framework for AI use, introduce
principles of transparency and accountability, and secure citizens’
digital rights, including the right to personal data protection and
the review of decisions made by automated systems.
However, active implementation of artificial intelligence
technologies is inevitably accompanied by new risks. One of the
most obvious is the growth of cybercrime and fraud, which, with the
use of AI, can become more complex and harder to detect. In this
regard, Kazakh state bodies plan to strengthen the cybersecurity
system and create mechanisms for more effective detection of
digital threats.
Another important constraint is the energy factor. The
development of data centers, high-performance computing, robotic
production, and digital platforms is accompanied by a significant
increase in energy consumption. Therefore, the authorities of
Kazakhstan have already instructed the relevant agencies to review
the long-term balance of electricity production and consumption,
taking into account the scaling of digital infrastructure.
Under these conditions, if infrastructure projects are
implemented in full, Kazakhstan could consolidate its position as
one of the regional digital hubs of Central Asia. The development
of GovTech platforms, large-scale AI implementation in public
services, and the expansion of IT exports could strengthen the
country’s role in the regional digital economy. In this case,
Kazakhstan could become a platform for developing technological
solutions for the entire Central Asian region.
Another possible scenario is that modernization will primarily
occur in the most technologically advanced sectors: the financial
sector, public administration, and telecommunications, while
traditional industries will adapt more slowly. This model is
typical for many developing economies, where institutional reforms
take longer than technology implementation.
If problems with energy supply, personnel shortages, and
cybersecurity turn out to be more serious than expected, the pace
of digitalization may slow down. In that case, the country will
have to focus on basic infrastructure: energy, education, and
workforce training, before scaling complex digital projects.
In the long term, the success of Kazakhstan’s digital
transformation will depend on the country’s ability to synchronize
technological reforms with the modernization of the economy and
public administration. The mere implementation of technologies does
not guarantee sustainable growth. However, with the right
institutional framework, digitalization can become one of the key
factors in Kazakhstan’s economic diversification and in
strengthening its position in the emerging digital economy of
Eurasia.
