In the Republic of Karakalpakstan, located in northwestern Uzbekistan, large-scale construction of digital economy infrastructure has begun. The project involves the construction of three computing complexes for mining virtual currencies and three data centers, with a combined estimated value of $5.11 billion. According to the chairman of the regional parliament, Amanbay Orynbayev, the entire territory of Karakalpakstan has been granted special zone status for the placement of computing infrastructure facilities, creating special conditions for investors.
Renewable generation serves as the energy foundation for the new facilities. The Nukus-2 wind power plant was recently launched in the region, and another similar facility worth $3.3 billion is under construction in partnership with Saudi company Acwa Power. Under current regulations, digital currency mining in Uzbekistan is permitted exclusively to legal entities and must primarily be carried out using environmentally clean energy sources. Connection to the country's unified energy system is technically possible, but entails the application of a double multiplier to tariffs, making such activity economically impractical.
The decision to establish the special zone was made in April of this year. Digital assets mined here may be freely sold and exchanged through both national and foreign trading platforms. The issuance of permits is handled by the National Agency for Advanced Projects. To obtain resident status, legal entities submit corresponding applications to a specially established management directorate. This system allows the state to exercise centralized oversight of the industry while simultaneously creating attractive conditions for law-abiding market participants.
At present, an extremely limited number of legal computing infrastructure operators are active in Uzbekistan. The agency issued its first official permit only in February of this year to private company NexaGrid, while the regulatory framework for licensing such activities was approved in autumn 2023. This cautious approach by the regulator reflects the authorities' commitment to the gradual formation of a civilized market with clear rules and effective oversight mechanisms for industry participants.