Kyivstar and VEON sign MOU with Ukraine on AI data center

Kyivstar Group Ltd. (NASDAQ: KYIV; KYIVW) and VEON (NASDAQ: VEON) have signed a Memorandum of Understanding with Ukraine's Ministry of Economy to explore the development of a sovereign AI-ready data center in Ukraine, according to a press release from the companies.

The MOU was signed at the 2026 Ukraine Recovery Conference in Gdańsk, co-hosted by Poland and Ukraine. The agreement outlines plans to develop next-generation computing infrastructure and strengthen Ukraine's capacity for domestic data processing and storage.

The proposed facility would be designed to keep data processing within Ukraine's borders, targeting sectors including public administration, financial services, defense technology, and research and development.

"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.

Oleksandr Komarov, President of Kyivstar Group, said the company would aim to fund and phase any investment within its existing capital expenditure plans. "Kyivstar has long partnered with the government to develop Ukraine's digital infrastructure, consistently investing in networks, technologies, and expertise," he said.

VEON Chief Executive Officer Kaan Terzioglu said the data center project aligns with the company's AI1440 strategy, which is aimed at embedding artificial intelligence across its operations in multiple markets.

The project is described as requiring long-term investment, advanced technical expertise, and a reliable energy supply. No financial terms or a timeline for the investment were disclosed. VEON is expected to contribute financial support and technical expertise to the initiative.

JSC Kyivstar serves more than 22 million mobile customers and over 1.2 million home internet customers as of March 31, 2025. VEON provides connectivity and digital services to over 150 million customers across five countries.

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