BAKU, Azerbaijan, June 11. Azerbaijan can position itself as an energy supplier and a hub for large data centers and technology companies, Executive Director of the Center for Analysis and Coordination of the Fourth Industrial Revolution (C4IR), Fariz Jafarov said, Trend’s correspondent at the event reports.
He made the statement at the event “Technovation – Science and Innovation for Sustainable Economic Transformation,” organized by the American Chamber of Commerce in Azerbaijan (AmCham Azerbaijan) in Baku.
According to him, the pace of technological change is currently accelerating compared to previous industrial revolutions, which is linked to the development of artificial intelligence, automation, and virtual reality technologies.
"In today’s environment, economies are measured not only by gross domestic product but also by the level of data development and connectivity, which he described as ‘gross data product.’
“According to estimates, the artificial intelligence economy could reach a volume of about $22 trillion by 2040, whereas in 2025 its volume is about $260 billion,” he said.
He also cited data on planned investments by major technology companies, including Oracle, Microsoft, Amazon, Google, and Meta, which could allocate approximately $600 billion to data center infrastructure this year.
According to him, based on data from the International Energy Agency, energy consumption by data centers could more than double by 2030 and reach a level comparable to the consumption of all of Japan.
Jafarov noted that the key constraint in the development of the artificial intelligence economy is not a lack of ideas, but access to energy.
He announced that over the past three years, Azerbaijan has developed a digital economy strategy for 2026–2029, which aims to support more than 300 local companies and small and medium-sized enterprises in their digital transformation.
In his words, digital transformation involves not only the adoption of technologies but also changes in business processes and mindsets, as well as investments in human capital and infrastructure.
F. Jafarov pointed out that Azerbaijan views the energy sector as one of the key drivers of diversification and can position itself as an energy supplier and a hub for data centers and technology companies.
He also mentioned SOCAR's agreements with Haimaker and Oracle to establish data centers in Azerbaijan, noting that SOCAR is transforming from an energy company into an entity involved in computing and investments in artificial intelligence.
Furthermore, Jafarov highlighted the development of digital infrastructure, including the Trans-Caspian Fiber-Optic Cable project, which is intended to connect Azerbaijan with Europe and Asia.
