VEON's Kyivstar inks MoU to enhance Ukraine's digital infrastructure
Kyivstar Group Ltd. and VEON Group have partnered with the Ministry of Economy of Ukraine via an MoU to explore building a sovereign AI-ready data center. The project aims to secure data processing within Ukraine, supporting sectors like defense and finance while boosting economic resilience. VEON will provide financial backing and expertise, aligning with its AI1440 strategy.

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VEON Ltd., a global digital operator and the parent company of Kyivstar Group Ltd., announced that Kyivstar has signed a Memorandum of Understanding (MoU) with the Ministry of Economy of Ukraine to advance the development of Ukraine’s digital infrastructure and economy. The collaboration includes exploring the establishment of a sovereign, AI-ready data center in Ukraine, with VEON expected to support implementation through its financial backing and global expertise. This initiative aims to develop next-generation computing infrastructure, strengthen Ukraine’s technological sovereignty in artificial intelligence, and catalyze investment into the country’s digital economy.
The proposed facility would represent a sovereign AI data center, ensuring that critical data processing and storage remain within Ukraine. This is particularly important for sensitive sectors such as public administration, financial services, defense technology, and research and development. By enabling secure, in-country data capacity aligned with national regulatory and security frameworks, the project would enhance resilience and safeguard critical information.
Oleksii Sobolev, Minister of Economy of Ukraine, emphasized that domestic AI infrastructure is an important step in strengthening economic resilience and technological independence. He noted the potential of initiatives that enable secure, sovereign data processing capacity within the country to support public sector modernization and private sector innovation.
Oleksandr Komarov, President of Kyivstar Group, stated that the development of artificial intelligence is creating a new level of demand for computing infrastructure. He reinforced the need for countries to build local AI infrastructure to stay competitive globally. Komarov mentioned that Kyivstar has long partnered with the government to develop digital infrastructure and would aim to fund and phase any investment within existing capital expenditure plans.
Kaan Terzioglu, Chief Executive Officer of VEON Group, highlighted that sovereign AI infrastructure keeps a country’s most important data and capabilities at home. He noted that through the AI1440 strategy, VEON is bringing augmented intelligence into everyday life, and supporting this data center is a natural extension of that commitment in Ukraine.
Hosting an AI data center in Ukraine would enable minimal data transmission latency and support the fast operation of AI solutions. This is critical for sectors where response time is vital, including industrial facilities, robotic systems, and real-time services. The project is expected to require long-term investment, advanced technical expertise, and a reliable energy supply.
Key Details of the Agreement
| Aspect | Description |
|---|---|
| Parties Involved | Kyivstar Group Ltd., VEON Group, Ministry of Economy of Ukraine |
| Objective | Advance digital infrastructure, develop sovereign AI data center |
| Key Action | Regulatory and technical assessment for AI facility |
| Strategic Focus | Technological sovereignty, economic resilience |
Kyivstar Group Ltd. is a Nasdaq-listed holding company that operates JSC Kyivstar, Ukraine’s leading digital operator. The company provides connectivity and digital services, including mobile and fixed-line voice and data, ride-hailing, e-health, digital TV, and enterprise solutions such as Big Data, cloud, and cybersecurity. VEON is a digital operator listed on NASDAQ, providing services to over 150 million connectivity users.
How will the ongoing conflict in Ukraine impact the construction and physical security of the proposed sovereign data center?
What specific financial commitments or capital expenditure adjustments is Kyivstar planning to fund this long-term project?
How will the facility ensure a reliable energy supply given the current strain on Ukraine's power grid?























