Microsoft to invest $500M in the Ukrainian market and to build two data centers in Ukraine

On October 2, Microsoft signed a memorandum of cooperation with the Ukrainian government, represented by the Ministry of Digital Transformation. Under its terms, the company will invest about $500 million in the development of cloud services in the Ukrainian market (the amount may be revised).

Representatives of the company and the Ministry of Digital Transformation announced the news at a briefing on October 2.

Deal details

According to AIN.UA data, among other things, this investment will go toward the construction of two data centers of the company in Ukraine. If data are stored inside the country, Ukrainian government agencies will be able to use the cloud services of the company (this requires the adoption of a cloud technology law).

The deal also includes discounts or special conditions for using Microsoft Azure, Office 365, and other cloud services for the Ukrainian government agencies and organizations, educational projects, etc.

According to Mykhailo Fedorov, the Head of the Ministry, the government is considering transferring Diia 2.0 services to Microsoft clouds.

Similar projects abroad

It should be noted that this is not the first such project of the company. In May 2020, Microsoft announced a $1 billion investment in the creation of a new data center and implementation of cloud services for enterprises and government agencies in Poland.

The company also signed a cooperation agreement with Chmura Krajowa (CK), a Poland-based cloud services provider. As part of this project, Polish enterprises will undergo digital transformation in the field of cloud solutions and will train about 150,000 employees and students.

Also, in June 2020, Pawel Borys, the president of the Polish Development Fund, co-founder of Chmura Krajowa ​(CK), announced about $3 billion of investments from Google and Microsoft to Poland over the next few years.

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