The Next Wave Of Urban Development: Investing In Smart City Infrastructure And Technology

Introduction

Smart cities are becoming a key driver of economic growth, urban sustainability and investment attractiveness. As cities evolve into interconnected digital ecosystems, data, the Internet and artificial intelligence are transforming urban governance, infrastructure management and public services. The report examines global smart city trends, Kazakhstan’s digital transformation and the factors supporting successful implementation of smart city infrastructure and technologies.

Key Findings

Smart cities are becoming a key driver of economic growth

Cities generate around 80% of global GDP and are transforming into interconnected digital ecosystems where data, the Internet and artificial intelligence are used to improve quality of life, management efficiency and urban sustainability.

 

Kazakhstan is advancing the digital transformation of its cities

The Digital Kazakhstan programme has established the foundation for smart city development. Astana, Almaty and Shymkent are implementing intelligent transport systems, infrastructure monitoring and AI-based analytics, while the Smart City Astana project is being implemented in partnership with Presight AI (UAE).

 

Successful smart cities depend on more than technology

Successful smart cities require data integration, digital infrastructure and institutional trust. International experience shows that the best results are achieved through integrated development models rather than isolated technology projects.

 

Kazakhstan demonstrates progress in digital government and smart city development

According to the UN E-Government Development Index, Kazakhstan ranks 24th globally, while Astana ranks 46th in the Smart Centres Index, reflecting the country’s progress in digital services and urban innovation.

 

Urban sustainability is becoming a key factor of future competitiveness

By 2050, around 68% of the world’s population is projected to live in cities. At the same time, cities account for around 75% of global CO₂ emissions, highlighting the importance of digital and environmentally sustainable urban development.

 

About the Authors

Ayan  Tuleshev

Ayan Tuleshev

Director, Industry Analysis Department

Aruzhan Kenenbayeva

Aruzhan Kenenbayeva

Manager , Industry Analysis Department

Ulan Kaiyrbay

Ulan Kaiyrbay

Senior Manager, Industry Analysis Department

Diana Assaubayeva

Diana Assaubayeva

Senior Manager, Industry Analysis Department

AIFC Services Assistant