A new data centre in Cyprus will connect to the Greek artificial intelligence factory and will use the computing power of the Greek DAIDALOS system
Cyprus is taking a major step into artificial intelligence development with the launch of its AI Factory, which will connect to Greece's Pharos facility to share advanced computing resources.
The country's Ministry of Research, Innovation and Digital Policy and the EuroHPC Joint Undertaking approved the AI Factory Antennas call in late 2025, paving the way for the Pharos-CY initiative.
"With the establishment of the AI Factory and the digital transformation of services, Cyprus is moving dynamically into the digital era, creating infrastructure and tools that will be used by both citizens and businesses," said Nicodemus Damianou, Cyprus's Deputy Minister of Research, Innovation and Digital Policy.
The facility will provide critical computing power needed for AI development by connecting to Greece's Daedalus supercomputer while also building a smaller supercomputer in collaboration with NVIDIA.
Damianou explained that the AI Factory serves to "bring together ecosystem actors, to give them computing power, because artificial intelligence requires more and different computing power."
The Cyprus-Greece partnership will focus on developing large language models for the Greek language, along with applications in healthcare and clean energy technology.
The initiative aims to establish AI capabilities across southeastern Europe while addressing the specific linguistic needs of Greek-speaking regions.
Specifically in the area of language, Cyprus and Greece will collaborate on the training and optimisation of large language models (LLMs) for the Greek language and the Greek element, as well as in areas of common strategic interest such as health and energy (clean tech).
Strategic Partnership between Greece and Cyprus
The Pharos-CY initiative is implemented in close and institutional cooperation with the Greek AI factory "Pharos", which is hosted in the National Research and Technology Infrastructures (GRNET) and uses the supercomputing infrastructure DAIDALOS.
With a common vision to enhance and disseminate artificial intelligence in the Greek language, both nationally and more widely in South-Eastern Europe, Greece and Cyprus are joining forces for joint development:
- Large Language Models (LLMs) and digital tools adapted to the Greek linguistic reality,
- Common data repositories and interoperable AI applications,
- Educational and training activities that will support the creation of an integrated AI ecosystem in the Greek language.
Impact and Benefits for Cypriot Society, Economy and Innovation
The Pharos-CY project opens up new horizons and creates significant potential for:
- SMEs and start-ups seeking to integrate AI solutions into their products and services,
- Researchers, students and engineers who will gain access to advanced computing infrastructure and specialised datasets,
- Public bodies and organisations aiming to develop smart services in areas such as Health, Language, Sustainability and Heritage.
