Luxembourg is ramping up its AI powerhouse ambitions with the AI Factory, an infrastructure project incorporating research, industry and policy in a single coordinated hub. Luxembourg’s economy minister will provide deeper insights in December 2025. But, this is what we know so far.
Luxembourg is one of seven European countries selected under the EuroHPC Joint Undertaking to host AI-Factories, which are meant as “one-stop shops” for AI, pairing high-performance computing (HPC) resources with support services. Each AI factory will pool European Union and national resources.
How can it help startups?
Luxembourg businesses can benefit from the AI Factory’s suite of AI services, which include:
-Advanced solution building;
-AI maturity assessments;
-Regulatory sandboxes to test and validate AI systems in controlled environments;
-Data sharing frameworks, enabling startups to access and leverage data for AI development;
-Guiding businesses from ideation to execution, for instance through training and upskilling programmes;
-Supporting every phase of AI adoption. This could include with funding from Horizon Europe, R&D and Innovation grants, and financial instruments, to support their AI projects.
Who stands to benefit?
The AI Factory will support SMEs, startups and scaleups active in finance, space, cyber security, and sustainability, on their AI journeys.
The key feature in Luxembourg will be the MeluXina-AI Supercomputer. Equipped with more than 2100 GPU-AI accelerators, this supercomputer will deliver the computational power needed to train and fine-tune specialised and optimised AI models. This €112 million (of which €80m is earmarked for acquisition and €32m for hosting/operation over five years) AI-optimised supercomputer will be hosted by LuxProvide and integrated into LuxConnect’s data centres in Bissen and Bettembourg.
According to the government, about 50% of the computing power of MeluXina-AI will be reserved for the EuroHPC network/other European users; the other 50% for national use in Luxembourg. According to the latest announcements, Luxembourg was putting in €60m from state co-financing while the rest of the costs are shared by the EuroHPC Joint Undertaking.
The supercomputer is expected to become operational in the second half of 2026, which means that supporting elements like services and regulation will follow.
Who is involved?
The consortium of partners for Luxembourg includes LuxProvide SA, which will operate the supercomputer development agency Luxinnovation, which will coordinate the AI Factory, including its support services, financing and innovation promotion. Also involved are the Luxembourg National Data Service (LNDS), University of Luxembourg, Luxembourg Institute of Science and Technology (LIST), the sovereign cloud operator (“Clarence”), startup incubators, the Luxembourg House of Cybersecurity and Luxembourg Space Agency, among others.
Full details on the application process are expected to follow after the 2 December announcement.
This article was published in the Silicon Luxembourg magazine.
