The Republic of Karakalpakstan in Uzbekistan is making a tectonic shift in its economic model. Construction has officially begun in the region on six major facilities — three mining farms and three data centers, with a combined value estimated at $5.11 billion. This is not just another investment, but a strategic bet on transforming the autonomy into the country's main digital hub.
The key driver was a special decree that effectively declared the entire territory of Karakalpakstan a special mining zone. As emphasized by the Chairman of the Jokargy Kenes, Amanbay Orynbayev, at the launch ceremony attended by President Shavkat Mirziyoyev, the approach to investors has now fundamentally changed. Previously, authorities welcomed any influx of capital; now they can dictate terms and select only high-quality projects.
Numbers that speak for themselves
The region's development dynamics are impressive. 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-fold. It is this colossal influx of capital that has allowed the transition from simply attracting money to filtering investors based on the level of their projects. This is a mature approach that distinguishes modern Karakalpakstan from many other jurisdictions chasing quick money.
Logically, such large-scale digital infrastructure requires reliable power supply. In tandem with mining capacities, green energy is also being developed. Together with Saudi Arabia's Acwa Power, a wind power plant worth $3.3 billion is being built, and at the same ceremony, the "Nukus-2" wind farm worth $260 million was commissioned. A year earlier, the Nukus Wind project worth $107 million was launched in the region. Thus, a self-sufficient cluster is taking shape: its own data centers powered by its own renewable generation.
A look to the future
President Mirziyoyev, commenting on the achievements, noted that the results match the region's potential but require "inspiration, patience, and resilience." Notably, the industrial boom is not limited to Karakalpakstan alone: DP World will begin construction of a logistics terminal worth $288 million in Tashkent as early as October. This points to systematic work by the authorities across the entire country.
Creating a specialized mining zone with its own energy base is a rare and forward-thinking move. The market has long needed jurisdictions that not only permit mining but build full-fledged infrastructure for it. If the project is implemented within the stated timeframe, Karakalpakstan could well become one of the key players on the global cryptocurrency mining map, offering investors a unique combination of cheap green energy and favorable regulation.