The Republic of Karakalpakstan, an autonomous region in northwestern Uzbekistan, is making an ambitious bet on the digital economy. Construction is starting on six major facilities in the region: three mining farms and three data centers. The total investment in these projects reaches $5.11 billion. These figures were announced by Amanbay Orynbayev, Chairman of the Jokargy Kenes (parliament) of the republic, during a ceremony launching new industrial capacities attended by Uzbekistan's President Shavkat Mirziyoyev.
A new era of investment policy
The key driver of this push has been a special decree that effectively turns the entire territory of Karakalpakstan into a single mining zone. According to Orynbayev, this fundamentally changes the approach of regional authorities to working with investors. Previously, any investment was welcomed here, but now priority is given to the quality of projects and the reliability of partners. The region has gained the right to select investors rather than simply accepting everyone.
The numbers confirm this tectonic shift. Over the past ten years, the number of entrepreneurs in Karakalpakstan has grown 2.5 times, and the volume of foreign investment has grown 500 times. This dynamic allows authorities to dictate terms and focus on strategically important areas.
Energy foundation for a digital future
Logically, mining and data centers require colossal energy resources. Regional authorities are betting on renewable energy. In partnership with Saudi company ACWA Power, a wind power plant worth $3.3 billion is being built here — one of the largest energy projects in Uzbekistan's history.
In addition, the "Nukus-2" wind farm ($260 million) has already been commissioned, and a year earlier the Nukus Wind project ($107 million) came online. Together, these facilities form a reliable energy base to power the new data centers and mining capacities, creating a unique symbiosis of "green" generation and digital infrastructure for the region.
President Mirziyoyev, commenting on Orynbayev's speech, emphasized that the results achieved fully correspond to Karakalpakstan's potential. According to him, this required determination and patience. Industrial development is not limited to this region alone: DP World will begin construction of a $288 million logistics terminal in Tashkent as early as October.
The course toward creating a mining zone finally cements Karakalpakstan's status as Uzbekistan's digital hub. The combination of data centers, mining sites, and its own green energy generation is a rare and powerful mix that could attract the industry's biggest players to the region.
My view: Uzbekistan demonstrates a rare example of a pragmatic approach to the crypto industry. Instead of bans or ignoring it, the country is creating a full-fledged ecosystem, solving mining's main problem — energy supply. This project can not only attract capital but also turn the region into a significant node in the global network of data processing centers.