Kyivstar Group Ltd. (NASDAQ: KYIV; KYIVW), a subsidiary of VEON Ltd. (NASDAQ: VEON), has 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 company.

The agreement was signed at the 2026 Ukraine Recovery Conference in Gdańsk, co-hosted by Poland and Ukraine. Under the MoU, Kyivstar expressed its intention to explore investment in Ukraine's AI computing market, with VEON expected to provide financial backing and operational expertise.

The proposed facility would keep data processing and storage within Ukraine, targeting sectors including public administration, financial services, defense technology, and research and development. The companies said hosting the infrastructure locally would reduce data transmission latency and support real-time AI applications.

Oleksii Sobolev, Ukraine's Minister of Economy, said in a statement that "domestic AI infrastructure is an important step in strengthening Ukraine's economic resilience and technological independence."

Oleksandr Komarov, President of Kyivstar Group, said the company would aim to "fund and phase any investment within our existing capital expenditure plans, maintaining our capital allocation discipline."

VEON Chief Executive Kaan Terzioglu linked the initiative to the company's existing AI1440 strategy, describing the data center as "a natural extension of that commitment in Ukraine."

No financial figures, timelines, or construction details were disclosed in the announcement.