VEON’s Beeline Kazakhstan Breaks Ground for Hyper Cloud Data Center to Offer Sovereign Enterprise, AI and Digital Services

Rhea-AI Summary

VEON (Nasdaq: VEON) announced that Beeline Kazakhstan has begun construction of a Tier III Hyper Cloud data center in Almaty to serve as a sovereign cloud, AI compute, and enterprise digital-services hub. The facility will keep customer data within Kazakhstan to meet national security and data‑sovereignty requirements and will offer IaaS, PaaS, BaaS, GPU-as-a-Service, and Security-as-a-Service for SMEs, developers, enterprises, and public-sector organisations. The project targets a end‑of‑2026 go‑live and aims to provide full-service redundancy inside Beeline Kazakhstan’s infrastructure, strengthening reliability, security, and local AI compute capacity.

The announcement cites Kazakhstan’s IT sector growth—more than 18,000 companies operating, a 16% increase in three years—as context for increased domestic cloud demand.

Positive

• Tier III‑certified Hyper Cloud facility under construction
• Data residency: all customer data stored within Kazakhstan
• Service stack includes IaaS, PaaS, BaaS, GPU-as-a-Service, Security-as-a-Service
• Targeted go‑live by end of 2026
• Full‑service redundancy within Beeline Kazakhstan infrastructure
• Supports AI and blockchain compute for enterprises and developers

Negative

• None.

Key Figures

IT companies in Kazakhstan 18,000 companies Size of Kazakhstan IT sector cited by Beeline Kazakhstan CEO

Sector growth 16% increase Growth in number of IT companies over three years

Target go-live date End of 2026 Planned launch timing for Hyper Cloud data center

Facility tier Tier III-certified Design standard for Hyper Cloud data center in Almaty

National security scope Customer data stays within Kazakhstan Data-sovereignty requirement for sovereign cloud platform

Market Reality Check

$50.34 Last Close

Volume Volume 65,691 is below 20-day average of 122,524 ahead of this AI news. low

Technical Shares at 50.34, trading slightly above 200-day MA of 49.2 before the announcement.

Peers on Argus

Key telecom peers like LBTYK and LBTYA show gains of up to 2.73%, while VEON is marginally down 0.06%, suggesting stock-specific trading rather than a sector-wide move.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 01	National LLM update	Positive	-2.6%	Ukraine national LLM based on Google Gemma and Vertex AI.
Nov 25	AI partnership	Positive	+2.7%	QazCode and MeetKai deal to scale sovereign AI stacks.
Nov 25	AI services expansion	Positive	+2.7%	QazCode–MeetKai cooperation to deploy AI products across markets.
Nov 24	Satellite connectivity	Positive	-1.0%	Kyivstar launches Starlink Direct to Cell SMS service.
Nov 17	Buyback program	Positive	+0.8%	Start of <b>USD 100 million</b> ADS and bond buyback.

Pattern Detected

Recent strategic and AI-related announcements have produced mixed 24-hour price reactions, with both gains and pullbacks following positive news.

Recent Company History

Over the last month, VEON has reported multiple strategic updates, including national LLM initiatives in Ukraine, AI partnerships via QazCode and MeetKai, a Starlink Direct to Cell launch, and a USD 100 million buyback program. Price moves around these events ranged from about -2.62% to +2.67% within 24 hours. Today’s Hyper Cloud data center announcement extends this pattern of AI and digital infrastructure investments across VEON’s markets.

Market Pulse Summary

This announcement outlines VEON’s plan for a Tier III Hyper Cloud data center in Almaty, designed as a sovereign platform for AI and enterprise services that keeps data within Kazakhstan. It extends prior AI initiatives across VEON markets, adding local compute capacity for enterprises and public entities. Investors may track execution toward the end-of-2026 go-live target and how this infrastructure supports previously announced AI partnerships and national LLM projects.

Key Terms

sovereign cloud technical

"will be a sovereign cloud platform that ensures all customer data stays within Kazakhstan"

A sovereign cloud is a cloud computing setup designed to keep data, systems and control within a specific country or legal jurisdiction so that local laws on privacy, security and government access are met. Think of it like storing valuables in a bank branch inside your own country with locked access and national oversight. For investors, it matters because demand, costs, regulatory approval and competitive advantage can be very different for services that meet these local rules.

iaas technical

"including IaaS, PaaS, BaaS, GPU-as-a-Service, and Security-as-a-Service"

Infrastructure as a Service (IaaS) is a cloud computing model that lets companies rent computing resources—like servers, storage, and network capacity—on demand instead of owning hardware. For investors, IaaS matters because it enables faster scaling, lower upfront costs, and predictable operating expenses for businesses, which can boost growth potential and margins; think of it as paying to use a utility grid rather than building your own power plant.

AI-generated analysis. Not financial advice.

Dubai and Almaty, December 8, 2025 – VEON Ltd. (Nasdaq: VEON), a global digital operator (“VEON”), today announced that Beeline Kazakhstan has begun construction of the new Hyper Cloud data center in Almaty—an advanced Tier III-certified facility designed to anchor Kazakhstan’s sovereign cloud, AI compute, and enterprise digital services ecosystem.

The investment positions Kazakhstan for the next phase of digital growth by providing domestic, secure, and scalable compute capacity for artificial intelligence, blockchain solutions, and next-generation telecom services. The Hyper Cloud data center being built by Beeline Kazakhstan will be a sovereign cloud platform that ensures all customer data stays within Kazakhstan, meeting national security and data-sovereignty requirements. The platform will provide small- and medium-sized enterprises with a wide range of modern services, including IaaS, PaaS, BaaS, GPU-as-a-Service, and Security-as-a-Service, enabling businesses to scale more rapidly, improve operational efficiency, and implement innovations securely.

“Kazakhstan’s IT sector continues to expand significantly, with more than 18,000 companies now operating, a 16% increase in three years. Cloud capacity is essential for the digital future of Kazakhstan,” explains Evgeniy Nastradin, CEO of Beeline Kazakhstan. “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.”

Targeted to go live by the end of 2026, the Tier III Hyper Cloud facility will provide full-service redundancy within Beeline Kazakhstan’s own infrastructure, significantly strengthening the reliability, security, and sovereignty of cloud services for enterprises, developers, and public-sector organizations.

About VEON 
VEON is a digital operator that provides converged connectivity and digital services to nearly 150 million connectivity and 140 million digital users. Operating across five countries that are home to more than 6% of the world’s population, VEON is transforming lives through technology-driven services that empower individuals and drive economic growth. VEON is listed on NASDAQ. For more information, visit: https://www.veon.com.

About Beeline Kazakhstan
Beeline Kazakhstan serves 11.9 million customers with mobile connectivity and around one million with fixed internet services. Since 2018, the company has been executing its digital operator strategy. Over the past five years, leveraging its expertise in digital solution development, Beeline Kazakhstan has created an ecosystem of 60 internal and external products. Beeline Kazakhstan is majority-owned by VEON.

Forward-Looking Statements Disclaimer
This release contains “forward-looking statements”, within the meaning of the Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Such forward-looking statements include, but are not limited to, statements relating to VEON’s investment plans. There are numerous risks, uncertainties that could cause actual results and performance to differ materially from those expressed by such statements, including risks relating to uncertainty over VEON’s investment plans, among others discussed in the section entitled “Risk Factors” in VEON’s 2024 Form 20-F filed with the SEC on April 25, 2025 and other public filings made by VEON with the SEC. The forward-looking statements contained herein speak only as of the date of this release and VEON disclaims any obligation to update them, except as required by law.

Contact Information
VEON
Hande Asik
Chief Communications and Strategy Officer
pr@veon.com

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FAQ

What did VEON announce about Beeline Kazakhstan's Hyper Cloud on December 8, 2025?

Beeline Kazakhstan began construction of a Tier III Hyper Cloud data center in Almaty to provide sovereign cloud and AI services.

When is the Beeline Kazakhstan Hyper Cloud data center expected to go live (VEON)?

The facility is targeted to go live by the end of 2026.

What services will the VEON Beeline Kazakhstan Hyper Cloud offer to enterprises?

The platform will offer IaaS, PaaS, BaaS, GPU-as-a-Service, and Security-as-a-Service for SMEs and enterprises.

How does the Hyper Cloud address data sovereignty for Kazakhstan (VEON)?

The Hyper Cloud is a sovereign platform that ensures all customer data stays within Kazakhstan to meet national security requirements.

What certification level will the Beeline Kazakhstan data center have (VEON)?

The new Hyper Cloud is described as a Tier III‑certified facility.

How does the Hyper Cloud support AI and regional digital growth for VEON?

It provides domestic, scalable AI compute and GPU capacity intended to power AI, blockchain, and next‑generation telecom services.