Ukraine AI infrastructure push: Kyivstar to build sovereign data center for military and businesses

Ukraine plans domestic AI computing capacity with Kyivstar

Ukraine is bolstering its domestic AI computing power through a partnership with Kyivstar, aiming to secure critical infrastructure amid the ongoing war. This initiative, backed by parent company VEON, addresses national security concerns, particularly for military applications, and reduces reliance on foreign tech. The move also seeks to retain valuable Ukrainian data locally, supporting businesses and national interests. Ukraine plans to build domestic computing capacity for artificial intelligence with Kyivstar, the company said on Friday, as the country tries to harden critical infrastructure during the war. Kyivstar said it had signed a memorandum of understanding with the Economy Ministry at the Ukraine Recovery Conference in Gdansk, while ⁠parent ⁠VEON would provide financial backing for a first phase that Kyivstar CEO Oleksandr Komarov said could need at least 3-5 megawatts of capacity and tens of millions of dollars. "The biggest consumer of Ukrainian AI right now is the military," Komarov told Reuters. "You cannot run military computing somewhere outside. It is a matter of national security." The plan reflects a wider European push ⁠to reduce reliance on foreign technology infrastructure, a concern that has grown more urgent in Ukraine after Russia's invasion forced the country ⁠to depend heavily on Western providers. That shift has also changed where Ukrainian data is stored. Microsoft Europe, Middle East and Africa Vice President Jeff Bullwinkel said at the conference that Ukrainian data was moved to data centres across Europe after the invasion to shield it from Russian strikes, underscoring how the war reshaped the country's digital systems. Komarov said Ukraine's current demand for artificial intelligence computing was still limited but strategically important, adding that Kyivstar could help deliver services to local businesses that may be too small to attract global cloud providers directly. At the ⁠same event, Nvidia Central and Eastern Europe business development director Patrycja Sokalska-Pomacho said Ukraine lacked the computing infrastructure needed to keep the value of its operational, cultural and language data at home. Reuters reported in December that Ukraine and Kyivstar were developing an artificial intelligence model using Alphabet-owned Google's open-source Gemma, part of a broader effort to support military and civilian operations as demand for secure local processing grows.

Kyivstar signs MoU with Ukraine to explore AI data center By Investing.com

DUBAI, KYIV, and NEW YORK - Kyivstar Group Ltd. (NASDAQ:KYIV; NASDAQ:KYIVW) signed a Memorandum of Understanding with Ukraine's Ministry of Economy today to advance digital infrastructure development, including exploration of a sovereign AI-ready data center. The MoU was signed at the 2026 Ukraine Recovery Conference in Gdańsk, Poland, according to a press release statement from parent company VEON Ltd. (NASDAQ:VEON). The telecommunications company, with a market capitalization of $3.58 billion, trades at a P/E ratio of 6.89 and maintains an impressive gross profit margin of 88% as of the last twelve months. According to InvestingPro analysis, VEON appears undervalued based on Fair Value metrics, placing it among opportunities on the most undervalued stocks list. The proposed facility would process and store critical data within Ukraine for sectors including public administration, financial services, defense technology, and research and development. The initiative aims to align with national regulatory and security frameworks. "The development of domestic AI infrastructure is an important step in strengthening Ukraine's economic resilience and technological independence," said Oleksii Sobolev, Minister of Economy of Ukraine. VEON is expected to support implementation through financial backing and expertise. Kyivstar stated it would aim to fund any investment within existing capital expenditure plans. "Ukraine is showing the world what a digital economy built for resilience looks like," said Kaan Terzioglu, Chief Executive Officer of VEON Group. "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." Oleksandr Komarov, President of Kyivstar Group, said the development of artificial intelligence is creating demand for computing infrastructure, reinforcing the need for countries to build local AI infrastructure. VEON operates across five countries, providing connectivity and digital services to over 150 million connectivity users and more than 228 million digital users. Kyivstar is Ukraine's digital operator and the first Ukrainian company to list on a U.S. stock exchange. In other recent news, Kyivstar Group Ltd. has signed a Memorandum of Understanding with Ukraine's National Securities and Stock Market Commission to explore mechanisms for Ukrainian investors to access its Nasdaq-listed shares. This agreement, announced at the 2026 Ukraine Recovery Conference, aims to conduct regulatory and legal assessments to facilitate this access. Additionally, Kyivstar has launched Uklon Store, an in-app marketplace offering flower delivery services in Kyiv, connecting users with local florists through its app. Meanwhile, VEON Ltd., the parent company of Kyivstar, has announced that its Uzbekistan subsidiary, Beeline Uzbekistan, signed memorandums of understanding with DataVolt. These agreements involve leasing capacity at DataVolt's Tashkent IT Park data center and exploring potential joint development of a data center in Bukhara. In another development, Benchmark has reiterated a Buy rating on VEON Ltd. shares, citing potential growth opportunities for VEON's Jazz Pakistani business amid discussions of an Iran peace deal. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Veon, Ukrainian Government to Work on AI Data Center

Veon plans to work with the Ukrainian government to advance the country's digital infrastructure and economy, including with the buildout of an artificial-intelligence data center. The company said Friday its Kyivstar Group unit, which provides connectivity and digital services, signed a memorandum of understanding with Ukraine's Ministry of Economy for the collaboration. Under the agreement, the parties will look into establishing an AI-ready data center in Ukraine. Veon is expected to support implementation through its financial backing and expertise, the company said. The initiative aims to strengthen Ukraine's technological sovereignty in AI and boost investment into the country's digital economy, the company said. "The development of domestic AI infrastructure is an important step in strengthening Ukraine's economic resilience and technological independence," Ukraine's Minister of Economy Oleksii Sobolev said.