Ukraine is moving to establish its own domestic computing infrastructure for artificial intelligence, a strategic move aimed at bolstering national security and fortifying critical infrastructure amidst ongoing conflict. The initiative involves a collaboration with Kyivstar, a major telecommunications provider.

Kyivstar announced the signing of a memorandum of understanding with Ukraine's Economy Ministry during the Ukraine Recovery Conference held in Gdansk. VEON, Kyivstar's parent company, is slated to provide financial support for the initial phase of this project. Oleksandr Komarov, CEO of Kyivstar, indicated that this first phase could necessitate at least 3-5 megawatts of capacity and an investment in the tens of millions of dollars.

Strategic Imperative for National Security

Komarov emphasized the critical role of domestic AI computing, stating that the military is currently the largest consumer of AI in Ukraine. He highlighted that military computing cannot be conducted externally due to national security concerns. This plan aligns with a broader European trend to decrease dependence on foreign technology infrastructure, a concern that has become particularly urgent for Ukraine following the invasion, which led to increased reliance on Western technology providers.

The shift in technological reliance has also impacted where Ukrainian data is stored. Jeff Bullwinkel, Vice President for Microsoft Europe, Middle East, and Africa, noted at the conference that Ukrainian data was relocated to data centers across Europe after the invasion to protect it from attacks, illustrating the profound changes to the country's digital systems.

Addressing Current Demand and Future Growth

While Ukraine's current demand for AI computing is still considered limited, Komarov underscored its strategic importance. He suggested that Kyivstar could facilitate services for local businesses that might be too small to directly engage global cloud providers. Patrycja Sokalska-Pomacho, business development director for Nvidia Central and Eastern Europe, also speaking at the event, pointed out Ukraine's existing deficit in computing infrastructure required to retain the value of its operational, cultural, and language data within its borders.

This domestic capacity building follows earlier efforts. In December, it was reported that Ukraine and Kyivstar were jointly developing an artificial intelligence model utilizing Google's open-source Gemma. This broader initiative aims to support both military and civilian operations as the need for secure, localized processing capabilities continues to expand.