Kazakhstan Implements the «70/30» Model for Energy Infrastructure Modernization

The Ministry of Artificial Intelligence and Digital Development, in cooperation with the Ministry of Energy, is implementing a mechanism to attract private investment for the modernization and expansion of Kazakhstan’s energy infrastructure under the «70/30» model.

The legal framework for implementing this mechanism has been established through the adoption of the Law on the Development of the Telecommunications Market and Data Centers. The Law designates data centers as strategic facilities and establishes the conditions necessary to attract private investment for the modernization and expansion of power generation capacity, with the participation of data center operators and digital miners as long-term consumers of electricity.

In the context of the Year of Artificial Intelligence declared by the Head of State, the growing demand for high-quality computing capacity and a reliable energy base has become a national priority. The proposed approach is aimed at accelerating the commissioning of new generating capacity without placing an additional burden on the state budget and without incorporating investment costs into electricity tariffs for the population.

The mechanism provides that, during the modernization, reconstruction, or expansion of existing power plants, up to 70% of the newly added generating capacity may be sold directly to major electricity consumers, including data centers and digital miners. The remaining 30% of the new generating capacity will be supplied to the Unified Power System of the Republic of Kazakhstan in order to strengthen the country’s energy security and meet the growing demand for electricity.

The implementation of this approach will attract private capital for the development of energy infrastructure, ensure the modernization of existing power generation facilities, enhance the reliability of electricity supply, and create additional opportunities for the development of high-tech sectors of the economy.

«The 70/30 model is an investment solution and the foundation of our digital economy’s energy independence. To fully develop artificial intelligence and build competitive data centers, we must ensure the accelerated development of power generation capacity. This mechanism will enable us to attract private capital for infrastructure modernization without placing additional pressure on electricity tariffs for citizens, while providing a strong impetus for achieving the objectives of the Digital Qazaqstan Strategy,» said Gizzat Baitursynov, Vice Minister of Artificial Intelligence and Digital Development.

The mechanism has already attracted interest from international investors. At present, an interested investor is considering the implementation of a project to construct a new power plant in the city of Ekibastuz under the 70/30 model.

The project provides for the phased commissioning of new generating capacity, the development of modern energy infrastructure, and the implementation of measures aimed at improving the reliability of the city’s heat supply.

The technical assessment has confirmed the feasibility of implementing the project. At the same time, organizational, technical, and investment-related aspects of the project continue to be refined in cooperation with the relevant stakeholders.

The introduction of the 70/30 model will constitute an important step in the development of Kazakhstan’s energy infrastructure. It will facilitate additional investment in the energy sector, create new generating capacity, and ensure a balanced approach to meeting the needs of the digital economy while strengthening the country’s energy system.