EU Commission to Invest €1.3bn in Cybersecurity and AI

The EU is set to bolster its digital defenses with significant investment and has announce the allocation of €1.3bn ($1.4bn) to fund innovative cybersecurity and AI projects over the next three years.

This new envelope, announced by the EU Commission on March 28, 2025, will fund projects between 2025 and 2027 as part of the Digital Europe Programme (DIGITAL).

DIGITAL is an EU program launched in 2021 to fund the deployment of tech initiatives. The program has an initial budget of €8.1bn ($8.8bn) under the Multiannual Financial Framework 2021-2027.

EU’s Focus on Cyber Resilience

Part of the new €1.3bn funding will be dedicated to cybersecurity projects, including:

• Boosting the cyber resilience of EU critical systems, especially for hospitals and submarine cables, through mechanisms like the EU Cybersecurity Reserve
• Supporting the rollout of the EU Digital Identity Wallet and strengthening the European Trust Infrastructure in order to enhance the cyber resilience of EU citizens by providing them with secure, interoperable and easy-to-use digital identity solutions

Read now: UK’s New Digital IDs Raise Security and Privacy Fears

AI and Tech Projects To Receive Financial Injection

Other missions of the new funding include:

• Supporting the AI Factories initiative by developing generative AI testing immersive environments, known as ‘virtual worlds,’ particularly in the healthcare sector and deploying energy-efficient common data spaces
• Supporting the European Digital Innovation Hubs (EDIHs) that provide companies and the public sector with access to technical expertise and testing of technologies, as well as with advice, training and skills to adopt the latest technologies
• Building up the Destination Earth initiative to create a digital model of Earth to support climate adaptation and disaster risk management
• Developing EU education and training institutions’ capacity in digital skills
• Developing efficient, high-quality, interoperable digital public services

The Strategic Technologies for Europe Platform (STEP), an EU-wide mechanism launched in 2024 to support tech initiatives, is set to drive innovation further by introducing the STEP Seal, a quality label that will be awarded to promising projects.

The EU’s upcoming DIGITAL calls, scheduled for release starting in April 2025, will provide funding opportunities for various entities, including businesses and public administrations, from EU Member States, EFTA/EEA countries and associated countries.

Interested parties can find information on open calls and eligibility criteria through the EU Funding & Tenders Portal, with additional calls to be published throughout the year.

Read more: 2025: A Critical Year for Cybersecurity Compliance in the EU and UK