Moody's: Central Asia, Caucasus build new digital infrastructure

Strengthening regional digital infrastructure and implementing transcontinental technology initiatives will become key drivers of economic transformation in Central Asian and Caucasus countries amid rapidly growing demand for artificial intelligence (AI) solutions, Moody's Ratings said, Report informs.

According to the international ratings agency, the ambitious Digital Silk Road initiative aims to create a new East-West data transmission route connecting Europe and Asia.

"The initiative is viewed as the digital component of the Middle Corridor, which is already actively used for international trade and the transportation of energy resources," Moody's said in an analytical report.

The emerging data transit system will be built around several key components, including a subsea fiber-optic cable across the Caspian Sea connecting Azerbaijan and Kazakhstan, an extensive terrestrial fiber-optic network spanning Eurasia, and a planned subsea cable across the Black Sea that would provide a direct connection between the South Caucasus and Europe's digital infrastructure.

According to Moody's analysts, implementing these projects will not only significantly improve internet connectivity and increase data transmission capacity, but also create conditions for more efficient operation of cross-border digital platforms.

The projects are expected to strengthen the region's role as a key link in the global data transit system along the Asia-Europe route.