Uzbekistan has introduced a tax-free zone in its western Karakalpakstan region targeting artificial intelligence and data centre projects, Reuters reports.
Foreign investors committing $100 mln or more will be granted full exemption from taxes and duties until 2040. The government will provide essential infrastructure and offer electricity at reduced rates.
Karakalpakstan, an autonomous region in Uzbekistan’s far west, is one of the poorest areas in the country. It has suffered heavily from the shrinking of the Aral Sea, much of which was diverted for Soviet-era irrigation projects.
The authorities have not specified when construction of the infrastructure will begin or which companies plan to participate. Uzbekistan aims to attract more than $1 bn in foreign investment for AI and digital infrastructure development by 2030.
