Innovation over bureaucracy: Kazakhstan’s new digital strategy

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 In a number of sectors, including housing and utilities, construction, industry, and agriculture, outdated management and production processes still persist.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