Cyprus is moving ahead with plans to strengthen its artificial intelligence capabilities through a new AI factory that will connect to Greece’s Pharos facility and use the computing power of the DAIDALOS supercomputer.
The initiative, known as Pharos-CY, will provide researchers, businesses and public organisations with access to advanced computing infrastructure to support the development of artificial intelligence applications.
The Ministry of Research, Innovation and Digital Policy and the European High Performance Computing Joint Undertaking (EuroHPC JU) approved the AI Factory Antennas call in late 2025, paving the way for the project.
“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,” Deputy Minister of Research, Innovation and Digital Policy Nicodemos Damianou said.
Access to Greece’s supercomputing infrastructure
The AI factory will connect to Greece’s Pharos AI factory, which is hosted by the National Research and Technology Infrastructure (GRNET) and uses the DAIDALOS supercomputer.
Alongside access to this infrastructure, Cyprus plans to develop a smaller supercomputer in collaboration with NVIDIA.
Damianou explained that the AI factory would bring together different participants in the sector and provide them with the computing resources needed to develop artificial intelligence applications.
“Artificial intelligence requires more and different computing power,” he said.
Focus on Greek-language AI development
A key part of the partnership will be the development and optimisation of large language models (LLMs) adapted to the Greek language and its specific linguistic characteristics.
Cyprus and Greece will also work on shared data repositories, interoperable AI applications and digital tools designed to support Greek-speaking communities.
The cooperation will extend to areas of common strategic interest, including healthcare and clean energy technologies.
The two countries also plan to organise educational and training activities to support the development of a wider Greek-language AI ecosystem across southeastern Europe.
Opportunities for businesses and researchers
The Pharos-CY project is expected to create opportunities for small and medium-sized enterprises and start-ups seeking to incorporate AI solutions into their products and services.
Researchers, students and engineers will also gain access to advanced computing infrastructure and specialised datasets, while public bodies and organisations will be able to explore AI applications in areas such as healthcare, language, sustainability and cultural heritage.
The project forms part of broader efforts to expand artificial intelligence capabilities in Cyprus and strengthen cooperation with Greece in digital technology and research.
Also read: 2027 tourism bookings down 8% to 12% despite capacity plans
For more videos and updates, check out our YouTube channel
