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Luxembourg’s Digital Future – a Look into the Data and AI Factories

Luxembourg has taken a major step forward in its ambition to become a leading hub for data, artificial intelligence (AI) and quantum technologies. As the government officially presented its national strategies for these key technologies in May 2025, we at LNDS are excited to be able to contribute to this effort through the Data and AI Factories – two cornerstone initiatives designed to unlock the value of data and foster the development of trustworthy, human-centric AI across sectors.

National Strategies on Data, AI and Quantum Technologies

In his State of the Nation address on 13 May 2025, Prime Minister Luc Frieden presented a clear vision for Luxembourg’s digital future.

This vision is based on three new strategies: on data, artificial intelligence and quantum technology. Together, they form a coherent and unique vision that is unrivalled in the world.

Luc Frieden, Prime Minister of Luxembourg

We highlight some of the key components of the national strategies below.

Data Strategy

– Implementation of the Once Only Principle: To reduce repeated data requests, the government wants to simplify how citizens and public administrations exchange information.
– Promotion of Data Valorisation: The strategy focuses on turning data into usable, impactful information that supports innovation and decision-making.
– Compliance with European regulations: Luxembourg aims to stay aligned with EU policies including the EU Data Strategy, Data Governance Act, and upcoming Data Act.
– Creation of a Data Factory: To support data reuse across sectors and initiatives, the government plans to create a virtual coordination structure known as the Data Factory.

AI Strategy

– Launch of the AI Factory: Officially launched in April 2025, one of the EU’s first AI Factories was created to support AI development in Luxembourg and across Europe, through supercomputing and collaboration.
– Adoption of the European AI Act: Luxembourg commits to applying the EU’s upcoming AI regulation to promote innovation.

Quantum Strategy

– Development of MeluXina-Q: Launching a national quantum computer project to build expertise in quantum computing and secure communication.
– Integration into European Quantum Initiatives: Contribution to EU-wide quantum projects to ensure long-term involvement in quantum technology development.

The Data Factory: Building the Foundations for Innovation

To help turn Luxembourg’s National Data Strategy into reality, the government is planning to set up a Data Factory – a virtual coordination structure that brings together public institutions, private companies, and researchers to make better use of data.

This virtual hub will be designed to support the transformation of raw data into structured, high-quality data products that are ready for reuse and value creation. This transformation requires the right expertise, tools, infrastructure, and ethical guidance – and that is where LNDS plays a key role.

Enhancing Quality & Usability of Data

Since our establishment, we have been dedicated to support value creation from the secondary use of data, enabling innovation while ensuring data governance, transparency, and security.

As part of our contribution to the Data Factory, we support enhancing the quality and usability of data. Even technically good data has limited value, if it is not Findable, Accessible, Interoperable and in the end Reusable – principles outlined in the internationally recognised FAIR data framework.

Turning raw data into value: the Data Factory workflow

These features make data ready for sharing, analysis, and innovation across sectors. To help data meet these criteria, we offer a range of services, including data cataloguing, data extraction and enrichment, data access and review and more. We also ensure that data is handled in ways that respect governance, legal, and ethical standards, while also becoming technically fit for reuse. In addition to these core services, we are also developing new tools and support mechanisms to help realise the full ambition of the Data Factory and enable its long-term success.

We are proud to be able to support and contribute to the various initiatives of the National strategies, such as the Data Factory, helping to transform data into a form that is ready for reuse, for example by the AI Factories, and to create impact across public, private, and research domains.

Wei Gu, Head of Service at LNDS

Our broader mission is to contribute to the digital transition of Luxembourg. We actively participate in strategic European initiatives such as the EU Data Strategy, Common European Data Spaces, and support the technical preparation of business capacities required by new legislations such as the Data Governance Act and the European Health Data Space. This reinforces Luxembourg’s commitment to a future built on trustworthy and innovative technologies​ – one that also includes artificial intelligence. The Data Factory provides the foundation for the AI Factory by ensuring access to high-quality, trustworthy data – an important “ingredient” for developing reliable and responsible AI systems.

The Luxembourg AI Factory: a European Initiative to Democratise AI

The Luxembourg AI Factory (L-AIF), officially launched in April 2025, is one of the first European AI Factories selected under the European Commission’s Digital Europe Programme. The AI Factory is a key element of Luxembourg’s digital strategy, providing high-performance computing infrastructure for AI, and fostering collaboration between researches, public institutions and private sector to accelerate responsible AI development. The objective of the L-AIF is to support small and medium-sized enterprises (SMEs) and public sector bodies in testing and adopting trustworthy, human-centric AI solutions.

This national initiative is operated by a consortium of experienced partners, including Luxinnovation, LIST, University of Luxembourg, LuxProvide, and LNDS. The AI Factory aims to lower the barriers to AI adoption through a broad portfolio of services:

  • Guidance, training, and mentoring to support AI integration
  • AI experimentation and testing facilities
  • Access to high-quality data and computing resources
  • Networking and matchmaking with innovation actors and researchers.

With the goal of creating a truly inclusive AI ecosystem, the Luxembourg AI Factory is particularly focused on providing services to sectors that are not yet mature in AI usage, helping them explore use cases, validate ideas and scale solutions sustainably.

Enabling AI with Trusted Data Services

As part of the consortium, we will contribute with our expertise on managing data from different sectors and making sure it can be reusable in a secure and responsible way. More notably, our role in the AI Factory is to help make high-quality data available for building and improving AI, as well as supporting the AI community with guidance on ethics, law, and the impact of AI on society, making sure the latest regulations are adhered to. In addition, will work closely with the EU AI Office to stay aligned with European efforts.

In close collaboration with strategic partners, we help translating cutting-edge AI research into practical applications, providing both algorithmic support and tailored services to Luxembourg’s SMEs and public actors.

Christophe Trefois, Head of Technology at LNDS

Our infrastructure and expertise help ensure that AI systems are trained and tested on high-quality, accessible, and ethically governed data. Our contribution will focus, but is not limited to providing:

  • Data discovery and interoperability services,
  • Data quality enhancement and enrichment tools,
  • Support in secure and compliant data reuse,
  • Trustworthy AI training with a focus on ethical, legal, and societal implications (ELSI),
  • Participation in co-creation activities for new AI-enabled services.

In combined efforts with our partners, we are aiming to strengthen the bridge between research and industry and support Luxembourg’s goal of becoming a data-driven innovation hub.

Building a Future Powered by Data

The creation of the Data Factory marks an important step in Luxembourg’s journey toward a secure and innovation-driven digital society, reflecting the vision set out in the national strategies. By connecting institutions and resources, it fosters collaboration and responsible data reuse across sectors, ensuring data delivers value to society.

In parallel, the Luxembourg AI Factory reinforces this vision by supporting the responsible development and adoption of artificial intelligence. As Luxembourg builds its role in the European AI landscape, the AI Factory helps make AI accessible, secure, and beneficial tolerable for all – from SMEs and researchers to policymakers working on future-ready solutions. Combined, these efforts shape a digital future where data and AI work together in service of the common good.