Renting state property for data centres without auctions

What changed in access to state property

The Cabinet of Ministers of Ukraine has simplified the procedure for leasing property of state-owned companies to host data centres and telecommunications infrastructure. The decision allows avoiding an electronic auction when transferring property of commercial companies in which the state’s share exceeds 50 percent into lease.

reported the prime minister of Ukraine Serhii Koretskyi. According to him, the decision should help businesses to relocate and deploy information technology (IT) infrastructure faster amid Russian strikes.

data centre next to a government building in evening lighting
Data centre next to a government building in evening lighting

How the simplified leasing mechanism will work

Under the new rules, lessees may be data centres and operators of communications. The mechanism applies only to property of companies with a state share greater than 50 percent and permits transfer into use without holding an electronic auction.

The simplification is temporary. It will be in force during martial law and for six months after it ends. That means the absence of competitive bidding will not become a permanent practice and will cease after the specified period.

technicians installing telecom infrastructure inside a secure facility
Technicians install telecommunications infrastructure inside a protected facility

Why now

The decision was adopted against the backdrop of regular attacks on digital infrastructure. During a meeting of the Supreme Commander-in-Chief’s Headquarters, steps were taken to strengthen the protection of data centres and communication-critical facilities, and the president emphasised the personal responsibility of government officials and heads of special services.

In addition, the government has already allocated funds to strengthen backup systems. The Cabinet of Ministers ordered the allocation of 518.3 million UAH from the reserve fund of the state budget to reinforce the backup information systems of state bodies, which became another reason to accelerate access to the relevant property resources.

Who and from what date the new rule applies to

The resolution directly concerns data centres and operators of communications that require rapid relocation or deployment of equipment. The right to lease applies to property of those commercial companies where the state’s share exceeds 50 percent, and it has been in effect since the government adopted the decision.

The simplified leasing mechanism will operate during martial law and for six months afterwards. This will affect both state enterprises that own the property and private companies that plan to place critical infrastructure in secure or protected locations.

Iryna Pavlova

Iryna Pavlova

Deputy Editor-in-Chief

Deputy Editor-in-Chief of Concord Fintech. She runs the news feed: choosing topics, fact-checking and preparing stories on the economy, business and government decisions that affect Ukrainians' money. She makes sure every story has a verified primary source.

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