BAKU, Azerbaijan, October 6. The Trans-Caspian
fiber-optic cable between Azerbaijan and Kazakhstan is scheduled to
become operational by the end of 2026, the Deputy Minister of
Digital Development and Transport, Rashad Hasanov, said, Trend's correspondent
reports.
He made the remarks at the German-Azerbaijani Conference on
Strategic Partnership and Connectivity in Baku on Tuesday.
Hasanov noted that one of Azerbaijan’s main goals in the area of
digital development is to transform the country into a regional
digital hub.
“To become a regional digital hub, three key factors are
necessary: infrastructure, human capital, and the regulatory
framework. Important work is underway in Azerbaijan in each of
these areas,” R. Hasanov said.
The deputy minister also noted that one of the key elements of
the digital corridor is the “Digital Silk Road” fiber-optic route,
which will connect Asia and Europe.
“The main component of this project is a fiber-optic cable
approximately 380 kilometers long, running along the bottom of the
Caspian Sea between Sumgait and Aktau. The cable reached the coast
of Kazakhstan in August and is scheduled to be put into operation
by the end of this year,” he said.
R. Hasanov emphasized that computing power and energy supply are
of particular importance for the development of artificial
intelligence.
“For decades, we have exported energy via pipelines. Now,
computing capabilities allow us to transform energy into an
exportable digital service,” the deputy minister noted.
According to him, work is underway to establish an artificial
intelligence data center in the “Alat” Free Economic Zone, and
negotiations with international partners are in the final
stages.
“The data center is intended to serve not only Azerbaijan but
the entire region,” R. Hasanov said.
The deputy minister noted that human capital is another key
component of digital development.
“Sustainable infrastructure requires people with the necessary
skills. In this regard, our cooperation with Germany is also
proving its worth. We have established the ASCON School of
Engineering and Technology in partnership with Azerbaijan Technical
University and the Technical University of Munich. The model used
here is well known to German companies: classroom theory combined
with hands-on training in the workplace. In the coming years, we
plan to transform this joint program into a dual-degree program,”
he noted.
R. Hasanov emphasized that new opportunities have opened up for
companies operating in the technology sector and for highly
qualified specialists.
“Parliament recently adopted a package of tax and immigration
reforms for the technology sector, as well as new laws on venture
capital and crowdfunding,” the deputy minister said.
He noted that starting in January 2027, companies operating in
the fields of digital technologies, artificial intelligence, and
cybersecurity in Azerbaijan will be exempt from income tax and
dividend tax for up to 20 years.
“Opportunities are also being created for highly qualified
specialists to relocate to Azerbaijan. Such specialists will be
exempt from income tax, and income earned abroad will be subject to
a 20-year tax exemption,” R. Hasanov added.
The deputy minister stated that Azerbaijan intends to attract
leading Western technology companies to establish their regional
offices in the country.
“We want leading Western technology companies to choose
Azerbaijan as their regional hub. A broader ecosystem can develop
around these companies. We would also like German companies to
become part of this ecosystem,” he emphasized.
R. Hasanov noted that Azerbaijan attaches great importance to
attracting not only capital through international partnerships, but
also technology, management expertise, and knowledge transfer.
“Our geographic location has given us this route. What we build
along it, both physically and digitally, will determine the value
of this route for us. The Middle Corridor will transport your
cargo, and the Digital Corridor will transport your data. Starting
in January, our regulations will make it easier for your companies
to operate in Azerbaijan,” the deputy minister added.
