Central Asia data center market to reach $179.7 million by 2028

The Central Asia data center market is expected to reach a value of $179.7 million by 2028 from $65 million in 2022, growing at a CAGR of 18.47% from 2022 to 2028, according to Research and Markets.

The Central Asia data center market reels under the undersaturation phase, which will likely pace up in the upcoming 2-3 years owing to increased social & internet penetration and digitalization across the region. DataDome, a construction company, announced its plan to develop a new facility in Bishkek, Kyrgyzstan, for DataTime. The facility will host around 100 rack cabinets with a power capacity of 500 kW.

Kazakhstan is considered a prime location for data center development in the Central Asia data center market. Kazakhstan is also among the major hub for crypto mining, making it the second-largest market after the United States. The industry is among the prime hubs for crypto mining data centers due to the availability of cheap power.

Uzbekistan is an emerging data center market in Central Asia and is also a largely populated country in the region. Metrotelecom and the internet exchange provider, ITI-IX, opened two data center facilities – ITI-IX T252 and ITI-IX T233. The market has the presence of several participants/vendors that are active in the Central Asia data center market. However, most infrastructure operators have a presence through several resellers and distributors.

Some infrastructure providers active in the Central Asia data center market include ABB, Caterpillar, Cummins, Eaton, Hewlett Packard Enterprise (HPE), Legrand, Schneider Electric, Vertiv, STULZ, and others.

5G Deployment to Boost Edge Data Center Development
Armenia, Azerbaijan, Uzbekistan, Kazakhstan, and other countries in the region have swiftly embraced the advancements of 5G technology, positioning themselves as major players in its adoption. One such standout is Azercell, a prominent telecom operator hailing from Azerbaijan, which has recently concluded successful internal testing for 5G technology. With promising strides, Azercell is gearing up to launch 5G services nationwide, heralding a new era of connectivity for the country.

Meanwhile, the momentum continues to surge in Uzbekistan as well. Mobiuz, a leading telecom operator, has introduced 5G services in the bustling capital city of Tashkent. Adding to this, Ucell made history by being the first to unveil 5G services across Uzbekistan in 2022.

For this pioneering endeavor, the company partnered with Huawei Technologies to provide the essential equipment. Notably, 5G services were initially introduced in the vibrant business district of Tashkent, laying the foundation for transformative technological advancements in the region.

Improvement in Inland and Network Connectivity
Investments in submarine cables in Central Asia are limited because all countries are landlocked and surrounded by each other. However, Georgia is the only country in the region with submarine connectivity, with two operational submarine cables connecting the country with Bulgaria and Russia.

The government and enterprises in various countries have continuously been strengthening fiber infrastructure for better connectivity with other countries over the years. Several telecommunication providers are investing in improving network connectivity within the country. In January 2023, Uzbektelecom, a telecom company based in Uzbekistan, signed a new contract with NEC, Internet Initiative Japan (IIJ), Toyota Tsusho Corporation, and NTT Communications to supply the equipment for expanding their telecom networks and connectivity across the country. Research and Markets