Uzbekistan plans to create a special tax-free zone for artificial intelligence (AI) projects and data centers in the western region of Karakalpakstan, Reuters reports, citing the government.
The initiative targets foreign companies willing to invest $100 mln or more. These investors will receive full exemption from taxes and duties until 2040.
To support the projects, the government will build the necessary infrastructure and provide electricity at preferential rates.
Officials in Tashkent have not yet announced a timeline for the start of construction. Reuters also notes that the government has not disclosed which companies might join the program.
This move aims to attract high-tech investment, accelerate digital transformation in the region, and strengthen Uzbekistan’s position as a hub for AI and data-driven industries in Central Asia.
