Kyivstar Buys Ukrainian Cloud Provider GigaCloud for $50 Million

Kyivstar has acquired Ukrainian cloud provider GigaCloud in a $50 million transaction, the companies announced this week, in a deal that accelerates the telco's shift from network operator to digital service provider.

The deal cleared its regulatory hurdle months ago. The Antimonopoly Committee of Ukraine approved the acquisition back in July.

What does the $50 million actually consist of?

The headline number breaks into components. The structure includes a $41 million acquisition price, up to $4 million in deferred debt, roughly $3 million in performance-related payments, and up to $2 million in capital expenditure compensation. About $5 million of the total value is contingent on future operational milestones and capital expenditures.

After closing, GigaCloud will operate as a separate business unit within Kyivstar Group. It keeps its own brand and management team, and the founders are expected to continue leading the business.

The companies said they will "begin cooperation to develop cloud technologies, AI infrastructure, and digital services for business."

Who is GigaCloud?

Founded in 2016, GigaCloud operates out of five data centers in the European Union, relying on colocation providers including Equinix (WA3 in Warsaw, Poland), Atman (Warsaw), and Talex. It's also an OVH partner. According to its website, the company has additional capacity in BeMobile's Kyiv data center and another facility in Lviv.

The numbers matter for context. GigaCloud serves more than 1,800 enterprise customers and generated $14 million in revenue and $4.7 million in EBITDA in 2025.

It's part of GigaGroup, a telecoms group founded in 2006 that also includes telco GigaTrans, cybersecurity firm GigaSafe, and data center operator GigaCenter.

What does this change for Kyivstar's digital strategy?

Plenty. "Together, we will create new opportunities for Ukrainian enterprises and contribute to the formation of the country's digital economy," the companies said in a joint statement. "We share the belief that the development of local infrastructure for data processing and artificial intelligence is an important prerequisite for Ukraine's digital competitiveness."

Oleksandr Komarov, president of Kyivstar Group, framed the deal as a capability grab: "GigaCloud brings to Kyivstar an established cloud business, deep expertise in cloud technologies, strong R&D capabilities and an experienced team."

He added that combining these strengths with Kyivstar's telecom infrastructure and customer scale "will be able to help even more companies modernize their operations and develop a stronger technology business for the corporate segment."

Founded in 1994 and part of the Veon Group, Nasdaq-listed Kyivstar already runs Kyivstar Cloud, offering dedicated servers, Azure Stack services, and colocation from at least one facility around Kyiv, alongside its fiber and wireless networks. Over the summer it announced plans for an AI data center in Ukraine potentially totaling 3-5MW.

GigaCloud CEO and co-founder Nazariy Kurochko said: "Together with Kyivstar Group Ltd., we will be able to accelerate infrastructure investments, expand our market presence, and continue to provide services of the level of quality that our customers expect."

Co-founder Anton Khvastunov pointed to demand trends: "Amid the growing demand for sovereign cloud solutions, this collaboration strengthens our capabilities to scale secure cloud services and contribute to the digital development of Ukraine."

War damage hangs over the deal

Both companies have recent scars. GigaCenter's Kyiv data center was recently hit by Russian attacks and permanently disabled. GigaCloud said its services continued operating normally on backup decentralized sites in Ukraine and the EU.

Last month, Russian drones struck Kyivstar's headquarters and an engineering office in Kyiv.

The companies said the deal lets GigaCloud "accelerate the implementation of ambitious development plans in Ukraine and international markets."