Sherzod Shermatov: Uzbekistan-Azerbaijan synergy opening new opportunities for IT exports - INTERVIEW

The digital transformation of Central Asia and the Caucasus is now transcending national strategies, shaping a unified technological landscape for the region. With IT exports rapidly growing and AI being implemented, the strategic partnership between Uzbekistan and Azerbaijan is becoming the foundation for the creation of a new Digital Silk Road – an ambitious bridge between Europe and Asia.

In an exclusive interview with Report, Sherzod Shermatov, Minister of Digital Technologies of the Republic of Uzbekistan, discussed the prospects for creating a joint digital corridor and building AI hubs.

Report presents the interview:

- Mr. Minister, Uzbekistan has set an ambitious goal of increasing IT services exports to $5 billion. Do you see potential in creating a joint digital corridor with Azerbaijan, which would allow IT companies from both countries to use shared infrastructure and tax incentives (IT Park and Baku ID) to more effectively access EU and Middle Eastern markets?

- We have developed very close relationships with colleagues both at the ministry level and at our IT parks.

Our agencies are already actively collaborating on the issues you raised. In particular, we jointly present at major international conferences. This not only provides significant cost savings but also allows us to present our region as a unified whole, attracting more attention from investors. The foundation for this partnership was laid by the leaders of our countries.

This opens up significant opportunities for synergies. We currently have a system of mutual support in place: we open opportunities for Azerbaijani startups in the Uzbek market, and for Uzbek startups in the Azerbaijani market. This digital corridor is vital for us. This also applies to the project to lay a submarine cable along the bottom of the Caspian Sea. Numerous data centers are being built in Uzbekistan, with their main clients in Europe. Reliable fiber optic networks are required to support their operation, and such cable systems are critical for the entire region.

- The Digital Silk Road project, implemented jointly with Azerbaijani partners, is transforming Azerbaijan into a digital transit hub between Europe and Asia. How does the Ministry of Digital Technologies of Uzbekistan plan to align its data center development strategy with this new highway, and is the creation of a unified virtual data space to facilitate digital trade in our region being discussed with Baku?

- Such telecommunications networks are essential for the development of the entire region, as all data is transmitted through them. The more such highways there are, the greater the opportunities for uninterrupted digital flows.

Today, countries in the region have great ambitions to create data center infrastructure for artificial intelligence. For example, in the Republic of Karakalpakstan, a special economic zone is being created for such facilities, offering significant tax breaks and special electricity rates. The main consumers of this capacity are located in European countries. For them to use our services, we need reliable communication channels passing through friendly countries, primarily Azerbaijan.

- Sherzod Khotamovich, in 2026, both our countries entered the phase of actively implementing AI in the public sector and industry. Is the possibility of creating a joint research lab or data exchange platform with Azerbaijan being considered, as this may help train language models for Turkic languages ​​and create common solutions for smart cities?

- Of course, a lot of work is being done in this area. Artificial intelligence is a relatively new field for all of us, and we constantly exchange experiences with our friends. Thanks to the trusting relationships between ministries and relevant organizations, we have established a direct dialogue. We don't need to use official communication channels through the Ministry of Foreign Affairs or wait for lengthy approvals – we communicate in real time via instant messaging apps and can promptly discuss any issues.

This communication format allows us to quickly find new common ground. Regarding artificial intelligence and training language models, we are always ready to expand our cooperation and implement new joint projects in this area.