$5.1 Billion Investment in Uzbekistan for Mining and Data Centers

Three cryptocurrency mining centers and three data centers will be constructed in Karakalpakstan, Uzbekistan. The total investment is reported to be $5.11 billion. The chairman of the Karakalpakstan regional council announced this information during the inauguration ceremony of the new facilities. This project aligns with the designation of Karakalpakstan as a special zone for cryptocurrency mining, and it is required to primarily use renewable energy. If the integrated power grid is used, the cost will be double the regular electricity rates. Only corporations can engage in mining activities, and income related to mining will be exempt from taxes and fees until January 1, 2035. Energy investments are also underway, with the mining special zone and data center projects being pursued simultaneously. This plan represents a case of combining mining infrastructure and data center investments in Central Asia, although the processing capacity, investor composition, and completion schedule for each center have not been disclosed. The direct impact on the Korean market and domestic investors is limited, but it is necessary to consider the long-term implications for hash rate distribution and electricity-based mining costs.

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