Russia’s Technology Hub Proposal in Cuba
Russia is looking to establish a new tech cluster, dubbed “Kayo Digital,” on Isla Duventodo in Cuba, aimed at businesses from Latin America’s BRICS Anti-US Bloc and countries in the Eurasian Economic Union. This initiative, as reported by a Cuban media outlet, also seeks to involve Cuban national media companies.
The project spans 450 hectares and will focus on innovations in areas like artificial intelligence, virtual and augmented reality, digital art, and sustainable technologies. Support is reportedly coming from both Russia’s industrial and digital development ministries, as well as the Trade Bureau in Cuba. The expectation is to see the project completed by 2032, with initial research centers and innovative facilities set to be finished before 2030. The residential complexes would likely be completed between 2026 and 2028.
Details on initial steps were showcased at a July meeting in Moscow, where representatives from Cuba and Russia gathered with businessmen, investors, and government officials from both nations.
“Kayo Digital is intended to become a tech hub for up to 15,000 residents, including 12,000 professionals and 3,000 students,” the outlet noted. “The plan involves constructing or renovating essential infrastructure for living and working, which encompasses offices, laboratories, factories, residential areas, shops, and community spaces for sports, culture, and recreation.”
The cluster will also include educational facilities such as daycare centers, schools, and university branches. Ensuring quality communication routes and services, like gas, water, electricity, sewage, and waste management, is emphasized as a priority by the project developers.
This proposal was introduced by Alexandr Vólkov, the director of a software company based in Moscow. During his presentation, he mentioned a “high demand” for information and communication technology solutions in the Caribbean, driven partly by a growing skepticism toward Western technologies perceived as insecure.
Cuba has been put forward as the base for this technology hub, working alongside Russian firms, with the idea that Cuba’s government might be less concerned about potential West-imposed sanctions. This could also enhance access to wider markets in the region.
Vólkov explained that Russian companies plan to provide a “sovereign IT infrastructure” using an on-premises model, where both data and software are stored locally, sidestepping the risks associated with cloud services. He asserted that Russian financial tech firms often outperform their Western equivalents.
However, the report doesn’t address how this initiative would tackle Cuba’s longstanding electricity challenges. The power grid in Cuba, which has faced years of decay under previous leadership, has been particularly problematic, repeatedly nearing total collapse this year.
While Isla de la Juventud has its own power grid distinct from mainland Cuba, it’s still affected by extensive blackouts. Recent reports indicate that the administration is now implementing enforced rolling blackouts there, with insufficient electricity to meet demand.
As of late June, it’s noted that the island’s power plant operates at less than half its original capacity. Reports have highlighted that the government is taking punitive measures against entities on Isla de la Juventud that do not comply with power distribution regulations, leading to service outages.
