The Republic of Karakalpakstan, an autonomous region in northwestern Uzbekistan, is turning into a strategic hub for the crypto industry. Regional authorities have officially announced the construction of three large mining farms and three data centers, with a combined budget estimated at $5.11 billion. This is not just a local project, but part of a large-scale state program for digitalization and capital attraction.
A new milestone in the region's development
The announcement was made at a ceremonial commissioning ceremony attended by the President of Uzbekistan, Shavkat Mirziyoyev. The Chairman of the Jokargy Kenes (parliament) of Karakalpakstan, Amanbay Orynbayev, emphasized that the launch of the projects became possible thanks to a special resolution granting the entire territory of the region the status of an official mining zone. This decision fundamentally changes the approach to investment policy: the region is moving from simply attracting any funds to a targeted selection of high-quality initiatives.
Orynbayev noted impressive dynamics: over the past ten years, the number of entrepreneurs in Karakalpakstan has grown 2.5 times, and the volume of foreign investment has increased 500 times. "Previously, we were happy with any investor, as long as they invested money. Now we have the opportunity to pay special attention to the quality level of both investors and the investments themselves," he stated, emphasizing the shift in priorities.
Green energy as the foundation
A key element of the strategy is providing new capacities with renewable energy. In the region, together with the Saudi company Acwa Power, a wind power plant worth $3.3 billion is being built, which will become one of the largest in the country's energy sector. At the same ceremony, the "Nukus-2" wind farm worth $260 million was commissioned, and a year earlier, the Nukus Wind project worth $107 million was launched. These facilities form a reliable energy base for data centers and mining capacities, which is critically important for the sustainable operation of such enterprises.
President Mirziyoyev highly praised the achieved results, noting that they correspond to Karakalpakstan's potential, but demanded "inspiration, patience, and resilience" for further development. Meanwhile, the industrial boom is also sweeping other regions: DP World will begin construction of a logistics terminal worth $288 million in Tashkent in October.
The combination of data centers, mining sites, and its own green generation creates a unique synergy for the region, cementing Karakalpakstan's status as Uzbekistan's digital center.
My view: This is a telling example of how Central Asian states are trying to carve out a niche between global crypto hubs and tightening regulation in other jurisdictions. However, betting on mining requires not only infrastructure but also long-term predictability of legislation. If Uzbekistan maintains its current course, it could become one of the few regions where the crypto industry develops legally and systematically.