UAE, Kazakhstan sign agreement on investment cooperation in data centre and artificial intelligence projects
Jan 12, 2024
Abu Dhabi [UAE], January 12 (ANI/WAM): The UAE Ministry of Investment has signed a 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 aims to create a framework for investment cooperation in data centre and artificial intelligence (AI) projects in Kazakhstan.
The MoU was signed by Mohamed Hassan Alsuwaidi, Minister of Investment; Bagdat Mussin, Minister of Digital Development, Innovations, and Aerospace Industry of the Republic of Kazakhstan; and Nurlan Zhakupov, Chairman of the Management Board of Samruk-Kazyna, JSC.
Data centres are essential for organisations to store crucial data and operate applications. Kazakhstan, the largest economy in Central Asia, is witnessing substantial growth in its data centre industry driven by increased demand for computing resources, progressive government policies and AI advancements.
The country's data centre market is projected to grow at a 6.83 percent compound annual growth rate between 2024 and 2028, resulting in a market volume of USD 416.7 million.
The MoU between the UAE and Kazakhstan centres on establishing robust and efficient collaboration through the development of bilateral relationships between public and private organisations.
The agreement also proposes introducing incentives to bolster relevant initiatives and seeks to facilitate the exchange of knowledge.
Mohamed Hassan Alsuwaidi commented, "The agreement reflects our commitment to further strengthening relations between our two nations and working together to realise 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 digitisation."
Nurlan Zhakupov, Chairman of the Management Board of Samruk-Kazyna, JSC, commented, "The establishment and growth of data centres is pivotal for Kazakhstan's technological advancement. They serve as the backbone of innovation, fostering economic development, and propelling the nation into the forefront of the global digital landscape. Furthermore, the strategic development of data centres not only enhances domestic capabilities but also acts as a magnet for foreign investments, positioning Kazakhstan as an attractive destination for international businesses seeking a robust technological infrastructure."
Kazakhstan's exports to the UAE amounted to USD 560.34 million during 2022, while the UAE's exports to Kazakhstan reached USD 1.69 billion. (ANI/WAM)
