Kazakhstan Unveils $14.2B Infrastructure Plan with AI and Digital Economy at Core

Kazakhstan is accelerating its transition to an AI-driven economy, backed by a $14.27 billion infrastructure modernisation plan and a mandate for asset tokenisation. For the fintech sector, the establishment of an English common law Investment Court and the integration of blockchain technologies represent a strategic effort to formalise and digitise the nation’s growing $400 billion economy.

What was announced

President Kassym-Jomart Tokayev’s 2026 State of the Nation Address, titled “Kazakhstan’s Current Priorities in a New Historical Cycle,” outlines a massive infrastructure and digital overhaul. Central to this is the launch of “Halyqtyq Qurylys” (People’s Construction), a programme that will see 6.5 trillion tenge—approximately US$14.27 billion—allocated from the National Fund by the end of 2029. An initial 1.5 trillion tenge is earmarked for 2026 and the first two months of 2027 to kickstart social and infrastructure projects across all regions.

The digital agenda is equally ambitious. Under the Digital Qazaqstan initiative, the country has already deployed two supercomputers, with a third scheduled for completion by the end of 2026. The President has called for a move beyond isolated automation toward an AI-powered digital economy that prioritises blockchain technologies and the tokenisation of assets. To support this, a new Investment Court will be established in Alatau City, operating on an English common law model to resolve commercial disputes. This is intended to provide a more stable legal framework for the 70 percent of fixed-capital investment currently driven by small and medium-sized enterprises (SMEs).

In the energy and logistics sectors, the government aims to achieve a sustained electricity surplus by 2029. This includes the potential start of construction for the Balkhash nuclear power plant in 2027 and the launch of the Moyynkum nuclear project. On the transport front, the Bakhty–Ayagoz railway is expected to enter service in 2027, adding 20 million tonnes of freight capacity between Kazakhstan and China. Additionally, the Aral–Caspian corridor, which began construction in August 2026, is expected to shorten the Trans-Caspian route by 1,000 kilometres and reduce delivery times by up to three days. Social measures include raising the monthly minimum wage to 110,000 tenge from January 1, 2027, benefiting 1.8 million people.

The companies involved

The Government of Kazakhstan, led by President Kassym-Jomart Tokayev, is the primary architect of this national development strategy. The administration is currently operating under a new Constitution that entered into force on July 1, 2026, marking 35 years of the nation's independence. This governance structure is increasingly focused on industrial diversification and the modernisation of state-led investment mechanisms, moving away from a historical reliance on raw material exports. Manufacturing now accounts for more than 14 percent of the national GDP, which is projected to approach US$400 billion in 2026.

A key player in this transition is Baiterek Holding, which has been tasked with a more coordinated role in attracting and supporting international investors. Working alongside the economic and foreign ministries, Baiterek is positioned as a central pillar for long-term financing in the manufacturing and infrastructure sectors. The government is also placing a heavy emphasis on SMEs, which currently contribute approximately 40 percent of the national GDP. The state’s financial strategy involves leveraging the National Fund, which, combined with gold and foreign exchange reserves, exceeds $130 billion. The President’s agenda also includes a comprehensive reform of public administration, aiming to streamline government structures through the use of AI and updated ethical standards for civil servants. This is part of a broader push toward a "Just, Strong, Clean and Progressive Kazakhstan" built on the principles of national unity and the rule of law.

What this means

The explicit mention of asset tokenisation and blockchain at the presidential level signals that Kazakhstan is no longer viewing fintech as a peripheral sector, but as a core component of its industrial strategy. By adopting an English common law model for its new Investment Court in Alatau City, the country is directly addressing the "rule of law" concerns that often deter Western venture capital and institutional investors. This move places significant pressure on other regional markets to offer similar legal protections to remain competitive. The focus on AI supercomputing and data centres also suggests a bid for regional digital sovereignty, potentially positioning Kazakhstan as the primary data hub for the Middle Corridor.