Ukrainian telco Kyivstar has announced plans to develop an AI data center in Ukraine.In a memorandum of understanding (MoU) signed with the country’s Ministry of Economy, the firm said that the facility would help to strengthen Ukraine’s technological sovereignty and boost foreign and domestic investment into the nation’s digital economy.Separately, Kyivstar’s CEO, Oleksandr Komarov, said that the project would require approximately 3-5MW of capacity and cost tens of millions of dollars to develop. DCD has approached the firm for comment.“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 Komarov. “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.”Kyivstar’s parent company, Veon, is expected to financially support the development of the data center. In a statement, the latter said that the facility would help to minimize data transmission latency and the fast operation of AI solutions.The project is in keeping with Ukraine’s wider efforts to enhance its digital sovereignty, amid greater reliance on Western software and computing resources since Russia’s invasion of the country in 2022. In an interview with Reuters, Komarov implied that the AI data center would primarily be used by the Ukrainian military, which, he said, is “the biggest consumer of Ukrainian AI right now.”Founded in 1994, Kyivstar is Ukraine’s largest mobile operator with 22.4 million customers in the country, according to its website. The firm is also a major renewable energy provider, acquiring six solar plants in May with a combined capacity of 105MW for UAH3.6 billion ($80.8m).Its construction of an AI data center would constitute a major addition to Ukraine’s data center market, which is small by regional standards. The country currently hosts 36 such facilities, according to DataCenterMap, with most located in the capital city, Kyiv.Learn more about the data center market in Poland and Eastern Europe, and meet with other executives and experts from the region at the DCN Warsaw event later this year.