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Cyprus Advances AI Strategy With New Computing Infrastructure

Overview Of A Bold New Initiative

The Presidential Palace hosted an event on June 5 focused on the development of artificial intelligence and high-performance computing infrastructure in Cyprus. Held under the theme “Artificial Intelligence: New National Infrastructures And Capabilities For Research And Innovation,” the event brought together government officials, researchers and industry representatives to discuss ongoing projects and plans in the sector.

Strategic Advancements In AI And HPC

Deputy Minister to the President Irini Piki and Deputy Minister of Research, Innovation and Digital Policy Nikodimos Damianou outlined the government’s approach to strengthening research, innovation and technology development. Both officials highlighted the role of scientific expertise, innovation and investment in supporting Cyprus’ transition towards a knowledge-based economy.

Collaboration With Global Tech Leader Nvidia

Partnership with Nvidia featured prominently in the discussions, with speakers pointing to its role in supporting Cyprus’ artificial intelligence and high-performance computing ambitions. According to Nvidia Vice President of Sales and Business Development for High Performance Computing Infrastructure Yiannis Iosefakis, the project shows how smaller countries can move rapidly in developing advanced technological capabilities.

Driving Innovation And Economic Transformation

Deputy Minister Nikodimos Damianou said artificial intelligence is already influencing economies and public services worldwide. He noted that Cyprus is seeking to build on its existing strengths rather than compete directly with larger economies. The forthcoming National Strategy for Artificial Intelligence is expected to outline priorities related to competitiveness, public sector modernisation and innovation.

From Infrastructure To Ecosystem

Among the initiatives presented was AI Factory Cyprus, which aims to provide researchers, universities, startups and organisations with access to advanced computing resources. Speakers also highlighted the importance of developing human capital alongside infrastructure, including efforts to attract and engage talent from Cyprus and the diaspora.

Integrating Local Efforts Into Global Networks

Participants emphasised cooperation between government, research institutions and technology companies as a key factor behind the implementation of new projects. Yiannis Iosefakis said the long-term value of the infrastructure would depend on the research, applications and innovation developed around it. The partnership with Nvidia is also expected to provide access to a broader international network of expertise and resources.

A Roadmap For Sustainable Economic Growth

Discussions also focused on projects such as Pharos-CY and the National Infrastructure for High Performance Computing and their role in supporting research, innovation and economic activity. Academic and industry representatives participating in the event highlighted the importance of collaboration between the public and private sectors in advancing artificial intelligence initiatives across Cyprus. The event concluded with discussions on how new AI and high-performance computing infrastructure can support research, innovation and technology development in the years ahead.

Cyprus Employment Rises 1.7% To 525,167 In Q2 2026

Cyprus employment increased 1.7% year over year to an estimated 525,167 people in the second quarter of 2026, according to the state statistical service, Cystat. Employees accounted for 472,254 of the total, while 52,913 were self-employed. The increase points to continued labor market growth across both wage employment and independent work.

Trade, Construction And Leisure Lead Employment Growth

Wholesale and retail trade, including motor vehicle and motorcycle repair, recorded some of the strongest employment gains, alongside construction and arts, entertainment and recreation.

Those sectors are closely linked to domestic economic activity, with trade reflecting consumer demand and construction reflecting investment. Employment growth in leisure-related industries also points to continued activity in consumer-facing services.

Hours Worked Rise Faster Than Employment

Labor input increased faster than headcount. Cystat estimated that employees and other workers put in 246.57 million hours during the second quarter, up 2.2% from a year earlier.

The increase suggests that businesses were not only employing more people but also recording higher total hours worked. Wholesale and retail trade, construction, and arts, entertainment and recreation again recorded the strongest gains.

Labor Market Expansion Remains Broad-Based

The combination of higher employment and hours worked points to continued expansion in Cyprus’ labor market during the second quarter. The pace remains moderate, but gains across several major sectors indicate that labor demand continued to support economic activity.

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