From digital twins to tokenization: What’s planned for Alatau

Tengrinews.kz — Alatau plans to create a digital model of the city that will help monitor the condition of buildings and utility networks, detect signs of potential problems, and test new solutions before they are implemented. The project will be developed by Kazakh specialists in cooperation with South Korean companies.
Digital technologies will also be used to attract investment: funding for construction and development projects could be raised through the issuance of tokens. Tengrinews.kz explains how these initiatives are connected and what they could mean for businesses and residents.
Alatau plans to develop its digital infrastructure alongside roads, buildings and utility networks. The approach was presented by Arman Asakayev, Director of the Digital Economy Department at Alatau City Authority, during the third Central Asia Fintech Summit in Almaty.
The concept is based on data from the physical city, including what facilities are being built, how they operate and their current condition. This information will be brought together in a digital twin.
Alatau City Authority plans to develop a pilot version jointly with South Korean companies AST Holdings and ILJOO GnS. The parties have already signed a memorandum to this effect at a smart cities exhibition in Busan.
For the South Korean partners, this is familiar territory. AST Holdings was involved in developing South Korea’s national digital twin platform and is working with Naver Cloud on digital models of five cities in Saudi Arabia. ILJOO GnS has developed digital solutions for Busan’s smart city projects and industrial facilities, including a Hyundai Construction Equipment plant.
Both companies were drawn to Alatau by the opportunity to join the project at a stage when the city is being built from scratch. Together with Kazakh specialists, they plan to adapt their technologies to local conditions and test them at real-world facilities.
Why Alatau needs a digital twin
The technology is designed to work as follows: an operator opens a model of a building on a screen and can see how much electricity it consumes, whether its equipment is functioning properly and where a fault alert originated. The operator can also locate a specific facility and review its maintenance history.
This is made possible by a digital twin — a virtual model that receives data from real-world facilities. The information comes from sensors that measure temperature, pressure, energy consumption and other indicators. Devices connected to a network that exchange such data are collectively known as the Internet of Things (IoT).
According to Kim Young-dae, Managing Director of ILJOO GnS, the system is designed to detect signs of equipment failure before they lead to an accident.

“One of the key benefits of a digital twin is its ability to go beyond simply showing what has already happened and detect early signs of change before they develop into serious problems. To achieve this, digital twins, IoT and AI must work together,” Kim Young-dae said.

Managing Director of ILJOO GnS, Kim Young-dae. Photo courtesy of Alatau City Authority.
One possible use case involves charging electric vehicles in parking facilities. For example, ILJOO GnS is developing technology that can detect early signs of potentially dangerous battery conditions by monitoring gas emissions and temperature changes. If integrated with the digital twin, the system could allow an operator to locate the vehicle in the parking facility and send staff to inspect it before a fire breaks out.
For residents, this could mean fewer accidents, while businesses and utility providers could benefit from planning maintenance in advance and reducing downtime.
The specific solutions to be implemented in Alatau have yet to be determined. The partners will first select a pilot area and facilities where they can test data collection and the system’s performance. The results will then help determine which features should be developed further.
Testing before implementation
It is noted that a digital twin can also be used to test new solutions before they are installed at real-world facilities. In Alatau, this capability is expected to be incorporated at the design stage of buildings and utility networks.

“Our goal is not to wait until the city is built and only then begin its digital transformation. Alatau City gives us the opportunity to develop the necessary IT architecture alongside the physical infrastructure. We see the digital twin not as a 3D model for presentation purposes, but as an analytical system for managing the city’s development based on real-world data,” said Alisher Abdykadyrov, CEO of Alatau City Authority.

For example, the digital model could be used to test how a new building energy management system would perform. ILJOO GnS used a similar approach in Busan: technologies were first tested in a digital environment, then at a test site, and only afterward deployed across the city. This helps identify problems before fixing them would require costly changes to completed infrastructure.
Kazakhstani specialists to participate in development

“The main lesson we have learned, particularly from international projects, is that technology cannot simply be transferred as is — it needs to be redesigned to suit the local environment and local data. Drawing on this experience, we plan to jointly develop a digital twin for Alatau City that will connect urban data and infrastructure and support city management through 3D spatial modeling and predictive analytics,” explained Lee Dong-woo, CEO of AST Holdings.

Kazakh specialists are expected to be involved from the pilot stage. They will receive training in developing and operating the system so that they can eventually continue its development independently.

“In this process, Kazakh companies and specialists should not be seen simply as maintenance personnel. They should participate as co-developers and long-term operational partners,” emphasized Kim Young-dae, Managing Director of ILJOO GnS.

For example, a local IT company could develop a transport management or environmental monitoring service and integrate it with the digital twin. As Alatau grows, demand for such solutions is expected to increase, creating new opportunities for domestic developers.
Attracting investment into real assets
The digital twin will help assess the condition of urban infrastructure. To raise funds for its construction and development, Alatau is also considering the use of digital tokens that give investors rights to certain payments.
For example, if a warehouse owner needs funds to expand the business, investors could purchase tokens and, under the terms of the offering, receive payments funded by rental income. This would allow businesses to attract a larger pool of investors without requiring each of them to purchase an entire property.
Speaking at the Central Asia Fintech Summit in Almaty, Arman Asakayev, Director of the Digital Economy Department at Alatau City Authority, noted that participating in major infrastructure projects typically requires tens of millions of dollars. Tokenization could lower the investment threshold, making such projects accessible to a broader range of investors.
Alatau is considering several models, including investment in construction projects and raising funds backed by the revenue of existing businesses. In each case, investors’ rights, payment terms and risks would need to be clearly defined. A Token Support Center is also planned to help protect the interests of participants.

“Investors need to understand who owns the asset, who holds it, what happens if the issuer runs into problems, and what happens to their rights if the technology platform changes,” Arman Asakayev emphasized.

Alatau plans to issue tokenized assets. Projects worth up to $10 million in total are expected to be tested under a special regulatory regime overseen by the National Bank of Kazakhstan. In 2027, further development of special regulations for digital assets is planned within the legal framework.
In the long term, the concept envisions integrating tokenization mechanisms into the city’s digital infrastructure. According to Asakayev, the “tokenization by default” concept would cover real estate, movable property, goods and services. It would include a blockchain-based digital registry for recording rights to these assets. The goal is to make the registration and transfer of such rights digital, with as few additional procedures as possible.
Technologies that grow with the city
All of these initiatives are intended to serve a common goal: helping Alatau become a regional hub for investment and technology. As the city develops, new facilities, services and projects will emerge, creating demand for both technology and capital.
For businesses, this offers an opportunity to take part in Alatau’s development from the ground up, while investors will be able to invest in specific assets and projects. Ultimately, the city could become a platform for developing and scaling solutions for the economy of the future.