Uzbekistan may be losing up to $4.5 bn annually because of its rigid data localisation rules. A new report by Kotib AI Research outlines the economic cost of the 2019 law on personal data.
Local Servers Rule Out Global Integration
Under Article 27-1, all personal data must be stored on servers inside Uzbekistan. This rule affects cloud services, increases infrastructure costs, and discourages foreign tech companies.
Localisation Rules: Billions Lost Across Key Sectors
Annual losses by sector include:
E-commerce: $900–1,250 mln Banking: $850–1,170 mln IT and startups: $675–975 mln Fintech: $575–825 mlnThese losses add up to 5.7% of GDP each year.