The Kazakh government has inked a $10 billion deal with US chip-making giant Nvidia and an Armenian-American cloud company to develop a 'Data Center Valley' in the country’s northern Pavlodar region. The deal is seen as anchoring a broader effort to turn Kazakhstan into a global digital hub.Kazakhstan recently adopted a development strategy called “Digital Qazaqstan“ to guide the country’s transformation into a cognitive economy through 2029. “Digital Qazaqstan represents a fundamental transition of Kazakhstan to a new model of development, where data, artificial intelligence, and modern technologies become the foundation of public administration and transform the country's digital ecosystem – from automation of individual services to integrated, data-driven governance,” according to a government statement.A critical element of the digital plan is the creation of an AI and data center hub. The newly signed deals with Nvidia and Firebird.ai are intended to turn that vision into a reality, with a launch date expected in 2027. What Kazakh officials are calling “Data Center Valley” will be located near the northern city of Ekibastuz. Phase 1 of the deal is worth $5 billion and will involve the construction of a 125-Megawatt (MW) data center. Details about Phase 2 of the project are still to be determined.Kazakhstan is currently experiencing a countrywide electricity-generating deficit. But officials say the area around the envisioned data center hub has sufficient capacity to meet growing power needs – 300 MW at present, with plans to reach 1 Gigawatt of annual capacity in the coming years.“Kazakhstan is systematically building a national infrastructure for AI development. The 'Data Center Valley' project will serve as a key platform for the new AI-token economy,” said Zhaslan Madiyev, Kazakhstan’s deputy prime minister and minister of artificial intelligence and digital development.“We estimate that the project’s implementation will generate at least $3 billion in annual export revenue, create new jobs, attract global technology companies, and strengthen Kazakhstan’s position as a key digital hub in Eurasia,” Madiyev added, speaking at the June 15 signing ceremony.Although a comparatively new entity, Firebird CEO Razmik Ovakimian insisted the company had the ability to “deploy cutting-edge US technologies” rapidly. “The launch in 2027 will position Kazakhstan among the top 10 leading countries in the world,” a Kazakh government statement quoted him as saying.Firebird and Nvidia are already collaborating on a major AI development initiative in Armenia, which is envisioned as a catalyst for turning the country into an innovating hub in the South Caucasus. In early June, Firebird announced that Phase 1 of the Armenian project was nearing the “final stage of construction and equipment deployment.”“Just ten months after the [initial] announcement, we are entering the final stage of a project that will help lay the foundation for a new technological economy,” a company statement quoted Alexander Yesayan, a Firebird co-founder as saying. “Through this project, we are creating an opportunity for Armenia … to compete among the world’s leading technology nations.”By EurasianetMore Top Reads From Oilprice.comDubai and Murban Crude Signal End of Middle East Supply CrunchConocoPhillips Set to Become First U.S. Major to Sign Post-War Syria Gas DealOil Prices Plunge as U.S. and Iran Reach Deal to Reopen Strait of Hormuz