Kyivstar Group, the owner of Ukrainian telecommunications operator JSC Kyivstar, together with its parent company VEON, signed a Memorandum of Understanding (MoU) with the Ministry of Economy of Ukraine last week at the 2026 Ukraine Recovery Conference in Gdańsk. The MoU aims to “advance the development of Ukraine’s digital infrastructure and economy” and includes the potential to establish a sovereign, AI-ready data center in the country.
According to a press release issued by Kyivstar, there is growing demand for AI infrastructure in Ukraine across both the public and private sectors. This MoU is said to lay the foundation for a new generation of data centers in the country while also strengthening Ukraine’s position as 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. Kyivstar has long partnered with the government to develop Ukraine’s digital infrastructure, consistently investing in networks, technologies, and expertise. As we explore this project, Kyivstar would aim to fund and phase any investment within our existing capital expenditure plans, maintaining our capital allocation discipline.”
An AI data center located in Ukraine would enable minimal data transmission latency while also keeping data in the country. This is vital for mission-critical operations in industrial facilities, robotic systems, and other real-time services.
“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,” said Kaan Terzioglu, Chief Executive Officer of VEON Group.
Kyivstar Group notes that the proposed data center would require long-term investment, advanced technical expertise, and a reliable energy supply. To that end, VEON is expected to support the project through funding and the provision of global expertise.
While data center investments tend to be focused in the UK and Germany (27 percent and 12 percent of total European data center investments respectively), countries such as Ukraine are likely to attract more investment over the next five years, according to Arizton, as digitalisation spreads through Europe. It isn’t clear at this stage how much money Kyivstar Group and VEON will invest in this data center as it currently only exists as part of an MoU.