Ukrainian telco Kyivstar announced that it has signed an MoU with the country’s Ministry of Economy to establish a sovereign AI-ready data centre in Ukraine.
Hosting an AI data centre in Ukraine would minimize data transmission latency and support the fast operation of AI solutions, which Kyivstar said is particularly important where response time is critical, including industrial facilities, robotic systems, and real-time services.
Kyivstar added that the proposed facility would also keep critical data processing and storage within Ukraine, which matters for sensitive sectors such as public administration, financial services, defence technology, and research and development.
“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, in a statement. “This reinforces the need for countries to build local AI infrastructure to stay competitive globally, and we are focused on advancing this in Ukraine.”
By enabling secure, in-country data capacity aligned with national regulatory and security frameworks, the project would strengthen resilience, safeguard critical information, and open new innovation opportunities, said Ukraine’s economy minister Oleksii Sobolev.
“The development of domestic AI infrastructure is an important step in strengthening Ukraine’s economic resilience and technological independence,” said Sobolev. “We see strong potential in initiatives that enable secure, sovereign data processing capacity within the country, supporting both public sector modernization and private sector innovation.”
Under the MoU, Kyivstar expressed its intention to explore investment in the country’s AI computing market while continuing to support its broader economy. Also, Kyivstar’s parent company Veon will provide financial and expertise support for the project.
“Kyivstar has long partnered with the government to develop Ukraine’s digital infrastructure, consistently investing in networks, technologies, and expertise,” said Veon Group CEO Kaan Terzioglu. “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.”
