Digital transformation is increasingly starting not with individual services, but with a reconsideration of the urban model itself. Cities are becoming key economic centers, and their competitiveness and resilience now directly depend on how effectively infrastructure, data, and services are managed.
Why cities are moving toward digital governance models
Today, cities account for around 80% of global GDP, and by the middle of the century nearly 70% of the world’s population will live in urban areas. At the same time, pressure on transport systems, energy networks, environmental conditions, and public safety continues to grow. Traditional approaches to managing these systems are no longer able to cope with the scale and complexity of modern cities.
In this context, digital technologies are not used as standalone IT solutions, but as tools for coordinating urban processes. Data, analytics, and artificial intelligence make it possible to manage flows, resources, and risks in near real time.
Kazakhstan’s position in digital transformation
Over recent years, Kazakhstan has built a foundational digital infrastructure at the national level. In the UN E-Government Development Index, the country ranks 24th globally, reflecting the maturity of its digital public services and its readiness for more advanced digital governance models.
This foundation enables a transition from the digitalization of individual services to systemic, city-level initiatives.
Astana as a platform for large-scale digital solutions
This transition is most visible in Astana. The city appears in international rankings of digital hubs and ranks 46th in the Smart Centres Index, which assesses not the number of technologies deployed, but the extent to which they are integrated into governance processes.
At the same time, artificial intelligence–driven projects are being implemented, including a $190 million initiative with Presight AI. The project focuses on developing data analytics and public safety systems, building practical experience in working with large-scale urban data.
Alatau City as a next-level project
Against this background, Alatau City is seen as the next stage in the evolution of the urban environment. In the AIFC Insights report, the project is described as the first city in Kazakhstan where digital architecture is embedded at the design stage rather than added later.
The model assumes that transport, engineering infrastructure, security, and resident services are built from the outset around data, analytics, and artificial intelligence. This approach helps avoid fragmented solutions and reduces the cost of future changes.
Why the focus is on a unified digital architecture
Global experience shows that the effectiveness of smart cities is determined not by the number of technologies deployed, but by how well they are aligned. Cities that move from pilot projects to a unified digital governance model achieve more stable and predictable systems.
The smart cities market is approaching $1 trillion, yet competition is increasingly based on the quality of governance and the practical value delivered to businesses and residents, rather than on technological showcases.
The role Alatau City can play
Alatau City is positioned as a transition from point-based digitalization to systemic management of the urban environment. From the outset, the project establishes a model in which decisions on infrastructure, security, and services are made based on data and analytics rather than isolated initiatives.
This approach can serve as a reference for the development of other cities in Kazakhstan, where digital technologies become part of the core governance model rather than an additional set of tools.