Telecoms group Veon has broken ground on a new data center in Kazakhstan set to offer sovereign cloud services.

The company this week announced its subsidiaries, Beeline Kazakhstan and Hyper Cloud Solution, had started construction on a new data center in Almaty.

The 2MW facility is due to go live by the end of 2026.

The new data center will allow Beeline and Hyper Cloud to offer cloud and AI services to businesses in Kazakhstan and ensure data and services remain local.

Rauan Kabdrahimov, Beeline Kazakhstan CEO of Enterprise Co, is overseeing the development of Hyper Cloud Solution. He said: "Building our own data center is an important step for the development of Hyper Cloud. This facility will allow for reliable storage and processing of data within the country and will lay the foundation for the development of modern digital services. We want Kazakhstan to become an attractive platform for both local and international IT companies, and the launch of our own data center provides real opportunities for this goal."

Evgeniy Nastradin, CEO of Beeline Kazakhstan, added: “Through the new Hyper Cloud service facility, we will be delivering state-of-the-art infrastructure for the country’s enterprise and AI needs. We will securely store and process the data within the country and develop the foundation for AI-powered, modern digital services. This investment will enhance Kazakhstan’s potential as a digital hub for the region.”

Beeline Kazakhstan announced the formation of Hyper Cloud earlier this year in partnership with Huawei.

Originally founded in Russia, Veon is now headquartered in Dubai. The company exited the Russian market in October in the wake of Russia’s invasion of Ukraine. The company currently has operations in Bangladesh, Kazakhstan, Pakistan, Ukraine, and Uzbekistan.