Baku, February 11, AZERTAC

On February 11, a meeting dedicated to the unified action plan on “Azerbaijan's New Digital Architecture” was held under the chairmanship of President of the Republic of Azerbaijan Ilham Aliyev.

The head of state addressed the meeting.

Speech by President Ilham Aliyev

- At today’s meeting, we will discuss issues related to digital development. There is a need for this. This issue will largely determine our future development. The trends and tendencies taking shape in the world are clear. The application of artificial intelligence, the creation of data centers, and the introduction of reforms related to digitalization actually determine the future development of countries. Certain work has been done in this direction in Azerbaijan, and we will discuss that today. The most important priority is to include this issue among the top items in our future activities.

Azerbaijan has extensive experience in the fields of oil and gas and connectivity, including cooperation with international companies and the implementation of major projects with many countries. These efforts require knowledge, expertise, and technical capacity. At the same time, they also require strong international partnerships.

Over the years, Azerbaijan has implemented many important infrastructure projects together with its neighbors in various directions. In other words, we have substantial experience in this area and have already established effective platforms for cooperation. Looking ahead, transport and energy corridors should also be transformed into fiber-optic corridors. Certain work has already been carried out in this direction. When oil and gas pipelines were built, this component was also incorporated.

However, this no longer meets present-day requirements. Therefore, our initiatives in the areas of digitalization, artificial intelligence, and the establishment of data centers should ensure the long-term and sustainable development of our country.

We have many advantages, one of which is our geographical location. This is an advantage that does not depend on us. However, the geographical location of any country can serve either its benefit or its detriment. We have successfully leveraged our geographical position to advance our country’s development.

As a result, our location between Asia and Europe, our position along the North–South corridor, and our existing infrastructure have provided us with a strong competitive advantage.

As I mentioned, our experience working with major transnational companies is also a significant advantage. Azerbaijan offers a favorable investment environment. Over the past 20 years, more than $350 billion has been invested in the Azerbaijani economy. Foreign investments are protected both by law and in everyday practice.

The protection of both domestic and foreign investment paves the way for the development of any country, including Azerbaijan. I can say that we have unique experience in this regard. Our oil and gas projects, which have been underway for more than 30 years, continue today under the same terms as originally signed. This experience, of course, should also be reflected in our relations with companies that play leading roles in the digital world.

Another advantage is that, as a result of the work we have carried out in recent years, we have been able to significantly increase our energy generation capacity. Over the past 20 years, our generation capacity has almost doubled and now stands at 10,000 megawatts. New power plants—whether gas, hydro, solar, or wind—have shaped the realities of modern Azerbaijan. Currently, we have at least 2,000 megawatts of unused generation capacity, which is a prerequisite for digitalization, artificial intelligence, and the establishment of data centers.

I should also note that in our region, and in the wider region as well, there are not many countries with such capabilities. Today, Azerbaijan fully meets its own needs for key energy sources and even exports them to global markets.

Considering that our plans for the development of renewable energy are also clearly defined—and have been discussed repeatedly—our generation capacity will further increase in the future on the basis of the contracts signed. Therefore, we must make the best use of this advantage.

Of course, the growing domestic demand for electricity must also be taken into account. In particular, we have extensive plans for industrial development. The population is growing, and so is industrial production, especially in the non-oil sector. In January of this year, our non-oil industrial output increased by about 8 percent. Therefore, our energy capacity must remain consistent with the overall development of the country.

At the same time, as you know, relevant documents have been signed with foreign partners for the construction of green energy cables, and we will export a portion of the electricity generated. However, as I noted, the establishment of data centers also requires substantial energy resources.

As I mentioned regarding fiber-optic connectivity, these cables have also been laid alongside the energy infrastructure. Currently, a project to lay a fiber-optic cable connecting us with the eastern shores of the Caspian Sea is well underway, and I hope it will be completed this year. This will ensure our connectivity with the East, and we must also work on new connections with the West. Of course, this is one of the key issues to be addressed at today’s meeting.

Another advantage is that we have already established contacts with the world’s leading companies in this area. Negotiations have been held with several of these companies, and the capabilities of our country have been clearly demonstrated to them. At the same time, we maintain close ties with global funds that manage the world’s major—and, I can say, largest—financial resources. The State Oil Fund of Azerbaijan has been cooperating with these institutions for many years, and a portion of Azerbaijan’s foreign exchange reserves is managed through them.

We are already investing through these institutions, and the issue of attracting investments to Azerbaijan from them was also raised in recent negotiations, receiving a positive response. In other words, we are now working on specific projects, and part of the shares of leading companies in the fields of digitalization and artificial intelligence is also held by the largest American funds, as I mentioned. This is a significant advantage for us.

In addition, the Charter on Strategic Partnership signed between the U.S. Government and the Government of Azerbaijan in this building yesterday further reinforces this advantage. This Charter is a historic document. It has already been published in the media, and everyone can see its provisions, including data centers, digitalization, artificial intelligence, and our close ties with American companies in this area. In other words, this is also an advantage for us.

At the same time, we have strategic partnership documents with ten European Union member states. Of course, European companies cannot compete with American companies in this area; they are likely at least a generation behind. However, certain work is underway, and effective cooperation with companies from those countries should be ensured.

Last year, we signed a comprehensive Strategic Partnership Document with the People’s Republic of China. As a result, we are one of a handful of countries in the world already operating under strategic partnerships with the world’s leading powers. In other words, this is an advantage for us as well. You may find another country with a similar advantage, but only if you look carefully.

Therefore, it would be completely unacceptable not to make use of it. Taking all this into account, issues related to centralized coordination of work in this direction have been under discussion for some time. On my instructions, an exchange of views is currently underway on these issues, including under my chairmanship today. Considering that this issue, as I noted, is a priority, we must begin, under my chairmanship at today’s meeting, preparing a specific action plan for the work to be done. We must complete it as soon as possible and thereby give a stronger impetus to this area.

Today’s presentation will highlight the key issues. Before we begin, I would like to share some of my thoughts and tasks with you. First of all, there must be very close coordination between state agencies in this area. State agencies should maintain close contact; isolated activities should not be allowed. The Ministry of Digital Development and Transport should prepare an action plan together with other state agencies and submit it to me in a short time.

In order to organize work on this issue more effectively, I believe that each state agency—first and foremost the ministries—should designate a deputy for digitalization, artificial intelligence, and cybersecurity, or create a new staff unit, or assign this area to one of the existing deputies, so that the employees and management of the Ministry of Digital Development and Transport know whom they should contact. This area should be treated as a priority in each state agency. This is the first point.

In recent years, various platforms and applications have been developed by different state agencies—ministries and other state bodies. To conduct this work in a coordinated manner, I believe this will no longer be necessary, and the existing platforms and applications should be gradually phased out. You will make suggestions regarding the timeline when you submit your proposals. Public services should be implemented through “mygov” portal—that is, from a single center. Everyone should be aware of this, both public institutions and citizens. This will also provide our citizens with a significant advantage. All services people need should be provided from a single point. You will, of course, advise me on how long this will take. At the same time, the advantages of the platforms that exist today, the experience gained, and the personnel who participated in their development should also be involved in the consolidated work. In other words, I acknowledge the results achieved, but today the time has come to consolidate everything in a single center.

As for personnel training, this is one of our top priorities. Certain work has recently been carried out in this area. We should pay greater attention to this field within our education system. Both students at higher education institutions in Azerbaijan and those sent abroad by the state should continue to develop their expertise in this domain. Considering that this will be a long-term and expanding process, there will be a significant need for personnel in this field in the future. Of course, certain changes should be made to the curriculum to provide secondary school students with basic knowledge.

The application of artificial intelligence should be widespread across state institutions. This is the case in leading countries around the world today. In fact, according to my information, in some developed countries, AI assistants help civil servants with day-to-day activities. Artificial intelligence can, of course, serve as an assistant in determining whether a decision is correct. Therefore, this system should be implemented, and officials in governing bodies should make extensive use of AI assistants.

As for the private sector, support mechanisms should be developed to ensure a consistent approach. We can encourage the private sector to pay greater attention to this area, and suggestions regarding this will also be provided.

Key targets should be established for cybersecurity. This area is one of the most critical. Last year, we were subjected to an orchestrated and aggressive cyberattack, and we also know its source. Necessary measures have been taken to protect ourselves from such serious threats. Therefore, this area requires serious attention. We already have a functioning Cybersecurity Center, and its work should always remain in the spotlight.

Of course, as I have already mentioned, contacts with the world’s leading companies in this area should be strengthened. I believe that today’s meeting, and the fact that this issue is under the president’s direct oversight, will send a clear message to many of our partners that Azerbaijan considers this area a priority. What opportunities do we have? The advantages I have listed should also be communicated to our foreign partners. The advantages I have not listed should now be conveyed by you, so that we can give a strong impetus to this area.

As I mentioned, an action plan should be prepared and submitted to me. The issues already discussed, and those to be discussed today—including those addressed in the presentation—should be included in the action plan.

Now, the floor is given to the Minister of Digital Development and Transport, Rashad Nabiyev, for the presentation.

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Minister of Digital Development and Transport Rashad Nabiyev delivered remarks.

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The meeting then continued with discussions.