UAE and Kazakhstan Strengthen Investment Cooperation in Data Centre and AI Projects
The UAE Ministry of Investment has recently signed a significant Memorandum of Understanding (MoU) with the Ministry of Digital Development, Innovations, and Aerospace Industry of the Republic of Kazakhstan and the Sovereign Wealth Fund Samruk-Kazyna. This strategic agreement establishes a framework for investment cooperation in data centre and artificial intelligence (AI) projects in Kazakhstan.
The signing ceremony took place with the presence of Mohamed Hassan Alsuwaidi, Minister of Investment; Bagdat Mussin, Minister of Digital Development, Innovations, and Aerospace Industry of Kazakhstan; and Nurlan Zhakupov, Chairman of the Management Board of Samruk-Kazyna, JSC. By joining forces, the UAE and Kazakhstan aim to bolster collaboration between public and private organizations, with a focus on developing a robust and efficient partnership.
Data centres play a crucial role in storing important data and operating various applications. Kazakhstan, known as the largest economy in Central Asia, is experiencing remarkable growth in its data centre industry. This growth is driven by increased demand for computing resources, forward-thinking government policies, and advancements in AI technologies. It is projected that between 2024 and 2028, Kazakhstan’s data centre market will grow at a compound annual growth rate of 6.83 percent, resulting in a market volume of US$416.7 million.
The scope of the MoU between the UAE and Kazakhstan encompasses incentives for relevant initiatives, as well as the exchange of knowledge. It reflects the commitment of both nations to strengthen bilateral relations and collaborate towards realizing a shared vision for economic advancement. The planned investments in data centre and AI projects in Kazakhstan will contribute to enhancing the country’s expanding digital infrastructure, providing businesses with more opportunities to embrace digitization and gain a competitive edge.
Commenting on the agreement, Mohamed Hassan Alsuwaidi stated, 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 centre 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.
Nurlan Zhakupov, Chairman of the Management Board of Samruk-Kazyna, JSC, emphasized the significance of data centres for Kazakhstan’s technological advancement. He highlighted that they serve as the backbone of innovation, foster economic development, and position the nation at the forefront of the global digital landscape. Moreover, the strategic development of data centres not only enhances domestic capabilities but also attracts foreign investments, making Kazakhstan an attractive destination for international businesses seeking a robust technological infrastructure.
The UAE and Kazakhstan have been engaged in robust economic cooperation, with both countries keen to further strengthen their ties. In 2022, Kazakhstan’s exports to the UAE amounted to $560.34 million, while the UAE’s exports to Kazakhstan reached $1.69 billion. This MoU marks a significant milestone in their partnership, with a shared objective of fostering investment in data centre and AI projects.
In conclusion, the UAE Ministry of Investment’s signing of the MoU with the Ministry of Digital Development, Innovations, and Aerospace Industry of Kazakhstan and the Sovereign Wealth Fund Samruk-Kazyna is set to boost investment cooperation in data centre and AI projects. This collaboration will contribute to the growth of Kazakhstan’s data centre industry, strengthen its digital infrastructure, and position the country as an attractive destination for foreign investments. The agreement reaffirms the commitment of both nations to deepening bilateral relations and jointly pursuing economic advancement.
