Karakalpakstan Begins $5.11 Billion Data Center Projects

Tashkent, Uzbekistan (UzDaily.uz) — Construction has begun on six major digital technology facilities in Karakalpakstan, comprising three mining sites and three data centers with a total project cost of US$5.11 billion, according to Amanbay Orynbaev, Chairman of the Jokargy Kenes of Karakalpakstan.

Speaking during a facility launch ceremony attended by President Shavkat Mirziyoyev, Orynbaev stated that conditions established in the region allow for an increased focus on the quality of attracted investments and implemented projects.

The expansion of digital infrastructure forms part of Karakalpakstan's broader investment strategy. Earlier, authorities announced the creation of the Besqala Mining Valley special mining zone in the region. Under a presidential decree, the zone's territory encompasses the entirety of Karakalpakstan.

Zone residents are permitted to source electricity for mining operations from the unified power grid, renewable energy sources, and hydrogen power plants. Participants in the Besqala Mining Valley are also granted tax incentives, with income derived from mining activities exempt from taxes and fees until 1 January 2035.

A dedicated directorate is designated to oversee the zone's operations, while the National Agency for Prospective Projects is responsible for issuing mining permits. Residents may sell crypto assets obtained through mining via national crypto exchanges and international platforms, or exchange them for other liquid crypto assets.

The new infrastructure projects encompass three mining facilities and three data centers with a combined estimated value of US$5.11 billion.