Kyivstar and VEON Sign MoU to Develop Sovereign AI Data Center in Ukraine
June 29, 2026
Kyivstar and VEON Sign MoU to Develop Sovereign AI Data Center in Ukraine
Kyivstar Group, the owner of Ukrainian telecom operator JSC Kyivstar, has signed a Memorandum of Understanding (MoU) with Ukraine’s Ministry of Economy, alongside its parent company VEON, to explore the establishment of a sovereign, AI-ready data center in the country. The agreement, reached last week at the 2026 Ukraine Recovery Conference in Gdańsk, is part of a broader effort to advance Ukraine’s digital infrastructure and economic resilience amid growing demand for artificial intelligence capabilities across both public and private sectors.
The proposed facility is designed to support mission-critical operations such as industrial automation, robotic systems, and real-time services by ensuring minimal data transmission latency and keeping sensitive data within national borders. According to Kyivstar, the MoU lays the groundwork for a new generation of data centers in Ukraine, reinforcing the country’s ambition to become a regional technology hub. “The development of artificial intelligence is already creating a new level of demand for computing infrastructure, and its practical use is expanding rapidly in everyday services,” said Oleksandr Komarov, President of Kyivstar Group. “This reinforces the need for countries to build local AI infrastructure to stay competitive globally, and we are focused on advancing this in Ukraine.”
Komarov added that Kyivstar has long partnered with the government to develop Ukraine’s digital infrastructure, consistently investing in networks, technologies, and expertise. He noted that any investment in the project would be funded and phased within the company’s existing capital expenditure plans, maintaining capital allocation discipline. VEON Group CEO Kaan Terzioglu emphasized the strategic importance of sovereign AI infrastructure, stating, “Sovereign AI infrastructure keeps a country’s most important data and capabilities at home, where they create the most value for its people and its economy. Through our AI1440 strategy, we are bringing augmented intelligence into everyday life across our markets, and supporting this data center is a natural extension of that commitment in Ukraine.”
The project would require long-term investment, advanced technical expertise, and a reliable energy supply, with VEON expected to contribute funding and global know-how. While data center investments have historically concentrated in the UK and Germany—accounting for 27 percent and 12 percent of total European data center investments, respectively—analysts at Arizton predict that countries like Ukraine will attract more investment over the next five years as digitalization spreads across Europe. At this stage, no specific financial commitment has been disclosed, as the data center remains in the exploratory phase outlined by the MoU.
Source: w.media
