After the restoration of its territorial integrity, the government of Azerbaijan (GoA) started an immense reconstruction effort for critical infrastructure such as highways, railways, and airports in the conflict-affected territories. Alongside these projects, the GoA is devoting significant attention to building smart settlements through innovative and digital solutions to provide comfortable living conditions for the safe return of internally displaced people (IDP). As a part of a government-led recovery strategy for these territories’ development, the GoA is also encouraging foreign companies to participate in the rebuilding process. The Chinese company Huawei is among the first group of high-tech vendors to gain a foothold in the digitalization process for the liberated territories by implementing key technologies and enhancing digital connectivity. This Chinese multinational technology giant has been involved in several national projects in Azerbaijan that have implemented new networking technology with smart solutions, as well as successfully employing its products and services in strategically important areas of the Karabakh region. This article sheds light on the effectiveness of these innovative policies and assesses whether the adoption of advanced digital solutions will enable achieving the sustainable socio-economic growth of Azerbaijan’s liberated territories.