Kazakhstan to develop coal-powered "data centre valley"

Kazakhstan has announced plans to develop a coal-powered "data centre valley" in northeastern region Pavlodar.

It would draw power from plants fired by coal mined in the coal-rich Ekibastuz basin, according to an announcement from President Kassym-Jomart Tokayev.

Kazakhstan is in a hurry to create a fully developed energy-thirsty digital economy by 2029. This year has been designated the country's Year of Digitalisation and Artificial Intelligence, while a Ministry of Artificial Intelligence and Digital Development was lately established to steer technological change.

“The introduction of digital solutions and AI technologies will improve the quality of public administration and industrial efficiency. But these plans require robust and sustainable energy infrastructure,” Tokayev said.

He argued that land and infrastructure for high-capacity data centres must be earmarked in advance, with the inclusion of reliable power suppies, cooling systems and security. The proposed data centre hub will be developed with the Pavlodar regional administration. The Ekibastuz coal basin is one of Kazakhstan’s largest energy resources.

Tokayev warned against delaying new power projects, cautioning that the development of nuclear energy alone would not meet demand. Kazakhstan’s first nuclear power station, planned with Russia’s Rosatom, is not expected to be operational until 2035.

Comparing data centres to metallurgical plants in terms of electricity consumption, the president said energy self-sufficiency was becoming a central pillar of economic policy. Current electricity generation of 123.1bn kilowatt hours a year would be insufficient to satisfy both industrial growth and ambitious plans for the delivery of digital infrastructure.

Kazakhstan is estimated to hold about 33bn tonnes of coal reserves, enough for roughly 300 years at current usage rates.

Tokayev instructed the government to submit proposals by March 20 to designate coal-fired generation as a national project. Planned developments include new thermal power plants in Kokshetau, Semey and Oskemen, the launch of a facility in Kurchatov and the expansion of GRES-2 alongside construction of GRES-3 in Ekibastuz.