Kazakhstan secures a $10 billion AI agreement with Firebird, supported by Nvidia.
The Kazakhstan AI agreement has been finalized. Kazakhstan has entered into a series of agreements with Firebird, a US startup supported by Nvidia, to establish artificial intelligence data centers that could attract up to $10 billion in investments, as the oil-and-gas-producing nation seeks to transform itself into a computing center for the region.
The main project is Data Center Valley, which is set to be located in Ekibastuz, an energy center in the northeast. The initial phase is estimated at around $5 billion, including $1 billion from state-owned Kazakhtelecom, and is expected to launch a 125-megawatt facility commercially by 2027.
The agreements were signed in Astana by Prime Minister Olzhas Bektenov, Nvidia’s Rev Lebaredian, and Firebird co-founders Razmig Hovaghimian and Alexander Yesayan.
Understanding the Kazakhstan AI agreement
The notable figure merits attention. The “$10 billion” represents a potential total across multiple agreements rather than a single guaranteed payment. The main documents are a strategic cooperation framework between Kazakhstan’s AI ministry and Firebird, along with a binding term sheet between Kazakhtelecom and Firebird concerning the data centers.
The framework establishes intent, while the more definitive component is the $5 billion initial phase, which is contingent on securing financing, power, and chips on schedule.
The ambition is significant. Officials indicate that the construction will accommodate at least 300 megawatts of computing, aiming to expand toward a gigawatt, utilizing as many as 100,000 Nvidia GPUs, including the latest GB300 and Vera Rubin chips, and could generate $3 billion annually in exports. These are goals, not actual installed equipment.
In this arrangement, Nvidia’s role is that of a supplier and supporter rather than a financier, but its chips are a valuable resource sought after by every hub, making the presence of a vice-president at the signing significant.
The evolving landscape of sovereign AI
This agreement is part of a broader trend. Governments from the Gulf to Southeast Asia are forming AI infrastructure agreements to avoid reliance on a few US and Chinese cloud services, with similar $10 billion-scale figures emerging, as seen in the US-backed plan for a hub in the Philippines.
Wealthy, energy-rich nations are offering power and land in exchange for the chips and expertise they lack.
However, there is a risk that announcements may outpace tangible outcomes. While memoranda are easy to draft, establishing data centers that are financed, powered, and stocked with chips is challenging, and many ambitious regional hub projects falter between signing and construction. Firebird claims it operates swiftly; it asserts that it developed a flagship AI Factory in Armenia in around six months, set to launch in July.
Whether Data Center Valley becomes a reality or remains merely a press release will depend on what financing is secured once the media attention fades.
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Kazakhstan secures a $10 billion AI agreement with Firebird, supported by Nvidia.
Kazakhstan has entered into agreements with Firebird, a startup backed by Nvidia, to establish AI data centres, in a deal valued at up to $10 billion as it aims to position itself as a regional AI center.