The European High-Performance Computing Joint Undertaking (EuroHPC JU) has awarded an Icelandic consortium ISK 700 million (approx. €4.65 million) to establish a national centre for Artificial Intelligence (AI) and High-Performance Computing (HPC) in Iceland.

The initiative, led by Almannarómur, brings together key national partners including the University of Iceland, Reykjavik University, Science Park of the University of Iceland (Vísindagarðar), the Icelandic Meteorological Office, and the Árni Magnússon Institute for Icelandic Studies.

The new centre will provide access to cutting-edge computing power, AI software, data resources, and expert consultancy to accelerate the development, training, and testing of new AI solutions. The project is designed to support organisations developing AI technologies, helping them bridge the gap from early-stage innovation to full-scale deployment.

Our goal is to make it easier for companies and institutions to experiment with artificial intelligence by offering free and straightforward access to computing power and specialist knowledge. By combining the strengths of these leading institutions, we are building a broad base of expertise and a world-class facility that will create opportunities and value for Icelandic societ,y, says Lilja Dögg Jónsdóttir, Managing Director of Almannarómur.

RU is home to Iceland’s leading research centre in AI

Reykjavík University is home to Iceland’s leading research center in artificial intelligence, CADIA, the Center for Analysis and Design of Intelligent Agents, and offers a specialized MSc programme in Artificial Intelligence.

We are committed to training students to become the future leaders in Icelandic business and society overall.. This grant will further strengthen our position to provide the best environment for students’ development, connecting their studies to current challenges in the industry, along with the resources to solve them. The grant will also contribute to our ongoing research and launch new cross-disciplinary collaboration projects, with a strong emphasis on promoting an ethical and responsible approach to AI, says Henning Úlfarsson, the Chair of the Department of Computer Science.

Advances RU´s role in spearheading the development of ethical and trustworthy AI systems

Bridget Burger, Specialist in Research Services at Reykjavik University, said;

This is a great achievement for Reykjavik University (RU) to receive this significant investment from the European Commission for its role in the AIFA-ICE project. Establishing an AI Factory antenna in Iceland in collaboration the LUMI AI Factory in Finland has the potential to further strengthen our university as a pillar of the AI ecosystem in Europe, while also ensuring our work is grounded in shared Nordic values. The planned activities led by RU can further secure the university´s role as a leader in AI skills and training, leveraging our faculty´s extensive expertise in the field.

She added;

This funding furthermore provides capacity-building and critical support at just the right time, and advances RU´s role in spearheading the development of ethical and trustworthy AI systems, and enables us to do our part in creating the European AI Continent. We are grateful for this support. It is a big win for all of us.

The centre will be located at Almannarómur’s offices in the Gróska Innovation House, within the University of Iceland’s Science Park.

Connecting Iceland to Europe’s Most Powerful Supercomputing Network

The project forms part of the EU’s Horizon Europe programme and connects Iceland to a European network of AI Factories — advanced innovation hubs providing large-scale computing and AI infrastructure. The Icelandic centre will link directly to the LUMI AI Factory in Finland, home to one of Europe’s most powerful supercomputers.

The initiative aims to give Icelandic startups, SMEs, and public institutions direct access to Europe’s leading AI resources, expertise, and technology. It is supported by Iceland’s Ministry of Culture, Innovation and Higher Education and directly advances the goals of the Artificial Intelligence Action Plan 2025–2027, launched earlier this year under Iceland’s National AI Strategy. The project also places strong emphasis on responsible and trustworthy AI, ensuring full compliance with European standards on artificial intelligence and data protection.

Among the Top-Ranked European Projects
The total value of the project amounts to ISK 1.4 billion (approx. €9.3 million). Half of the funding comes from EuroHPC JU, while the Icelandic consortium partners will contribute the remaining amount through staff time, access to research facilities, and project resources.

The Icelandic proposal was ranked among the highest-rated applications in Europe. In total, 13 projects across the continent received grants to establish regional AI centres connected to flagship AI Factories such as LUMI.

LUMI, one of the world’s most powerful supercomputers, recently expanded its operations to include AI Factory services with support from EuroHPC JU. Similar AI Factories are being established across Europe as part of the EU’s broader artificial intelligence strategy.
In addition to these flagship factories, EuroHPC JU has also launched a network of AI Factory Antennas — national satellite centres connecting local ecosystems to Europe’s largest AI facilities. The Icelandic centre will serve as Iceland’s national AI Factory Antenna, connected directly to the LUMI AI Factory in Finland.

A National Collaboration on AI and HPC
The project brings together six leading Icelandic institutions, each contributing unique expertise and infrastructure in artificial intelligence and high-performance computing:

• Almannarómur – Project coordinator and ecosystem developer for AI in Iceland, responsible for project management, communication, and strategic alignment. Almannarómur is also a founding member of New Nordics AI, a pan-Nordic initiative promoting responsible AI development and collaboration.
• • University of Iceland (HÍ) – National leader in HPC research through the IHPC project, connecting scientists, industry, and institutions using large-scale computing in research and innovation. The university also plays a key role in education and training in data science and AI.
• • Reykjavik University (RU) – Offers a specialised Master’s programme in AI with an emphasis on an ethical approach to AI in line with European values. RU offers excellent and specialised facilities for research, development and testing of AI solutions, e.g. for virtual reality, AI for robots and sleep research. Vísindagarðar University of Iceland Science Park – Hosts the project headquarters in Gróska, an innovation hub bringing together startups, research groups, and companies. Plans include establishing an AI Campus to foster collaboration and innovation.
• • Icelandic Meteorological Office – A leader in AI applications for climate, environmental, and natural hazard research. The office contributes expertise developed through major European initiatives such as Destination Earth and the ECMWF network.
• • Árni Magnússon Institute for Icelandic Studies – Iceland’s foremost research centre in language technology and custodian of the Icelandic Language Bank, a national linguistic data repository supporting the development of Icelandic language models and tools.

Together, these partners will build an integrated national infrastructure for artificial intelligence in Iceland — strengthening research, innovation, and responsible AI adoption across sectors.