Ukrainian cloud provider GigaCloud has been acquired by Ukrainian telco Kyivstar. The companies announced this week that Kyivstar Group is investing in GigaCloud and becoming the latter’s new strategic partner. After the $50 million acquisition, the companies said they will “begin cooperation to develop cloud technologies, AI infrastructure, and digital services for business.” Following the closing of the deal, GigaCloud will continue to operate as a separate business unit within Kyivstar Group, retaining its own brand and management team, with the company's founders expected to continue to lead the business. “Together, we will create new opportunities for Ukrainian enterprises and contribute to the formation of the country's digital economy. 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,” the companies said. The transaction structure includes a $41 million acquisition price, up to $4 million in deferred debt, approximately $3 million in performance-related payments, and up to $2 million in capital expenditure compensation. Approximately $5 million of the transaction value is contingent on future operational milestones and capital expenditures. The companies continued: “For Kyivstar, this is another step in the transformation from a telecom operator to a digital service provider. For GigaCloud, it is an opportunity to accelerate the implementation of ambitious development plans in Ukraine and international markets.” The Antimonopoly Committee of Ukraine gave its approval of the deal back in July . GigaCloud is part of GigaGroup, a telecoms group that was founded in 2006 and includes telco GigaTrans, cybersecurity firm GigaSafe, and data center operator GigaCenter. Founded in 2016, GigaCloud says it operates out of five data centers in the European Union, relying on colocation providers such as Equinix (WA3 in Warsaw, Poland), Atman (Warsaw), and Talex. The company is also an OVH partner. According to its website, the company also has capacity in BeMobile’s data center in Kyiv and another facility in Lviv. “GigaCloud brings to Kyivstar an established cloud business, deep expertise in cloud technologies, strong R&D capabilities and an experienced team," said Oleksandr Komarov, president of Kyivstar Group. “Combining these strengths with our telecom infrastructure, scale of work with customers and investment opportunities, we will be able to help even more companies modernize their operations and develop a stronger technology business for the corporate segment. This acquisition is an important step in the implementation of our digital strategy and at the same time will contribute to the development of the infrastructure that Ukraine needs in the long term.” GigaCenter’s data center in Kyiv was recently damaged by Russian attacks, permanently disabling the facility. GigaCloud, however, said that its services continued to operate normally on backup decentralized sites in Ukraine and the EU. Founded in 1994 and part of the Veon Group, Nasdaq-listed Kyvistar (Київстар) is one of the main telecoms operators in Ukraine. As well as operating a large fiber and wireless network, the company offers dedicated server and cloud services via its Kyvistar Cloud, as well as Azure Stack services and colocation from at least one facility around Kyiv. Kyivstar announced plans to develop an AI data center in Ukraine over the summer, potentially totaling 3-5MW. Russian drones struck Kyivstar's headquarters and an engineering office in Kyiv last month. "We built GigaCloud on the trust of our customers and the expertise of our team. 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," said Nazariy Kurochko, CEO and co-founder of GigaCloud. "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," added Anton Khvastunov, co-founder of GigaCloud. GigaCloud reportedly serves more than 1,800 enterprise customers, and generated $14 million in revenue and $4.7 million in EBITDA in 2025