Cyprus has the digital pipes. What it still needs, according to Brussels, is faster use of the technology flowing through them.
The European Commission’s 2026 report on the Digital Decade places Cyprus among the EU countries with strong connectivity infrastructure and an ambitious roadmap for 2030. But the same assessment warns that the country’s digital transition is uneven, with businesses slow to adopt artificial intelligence, many citizens still lacking basic digital skills and parts of the public sector in need of deeper reform.
The clearest strength is connectivity. Very High Capacity Network coverage stands at 89.1%, the same level recorded for fibre-to-the-premises coverage, while basic 5G now reaches the entire territory. Cyprus has also already surpassed its 2030 national target for edge nodes, with 14 in place against a target of 10.
That infrastructure, however, is not yet translating into full digital maturity across the economy. The report says 67.3% of small and medium-sized enterprises have at least a basic level of digital intensity, while 45.5% use cloud services and 33.5% use data analytics. Only 7.9% use AI applications, a figure below the EU average and a weak point in an otherwise improving picture.
The Commission’s message is that Cyprus must turn strategy into practice. It calls on the government to make the national AI strategy operational through targeted support for companies, especially SMEs, with training, talent attraction, workforce development and wider use of the new AI Factory Antenna in Cyprus.
Digital skills are another pressure point. Just under half of citizens, 49.5%, have at least basic digital skills, far from the EU’s 80% target for 2030. ICT specialists account for 5% of total employment, but the Commission says gaps between age groups and education levels continue to limit access to the digital economy. It recommends more programmes for older people and citizens with lower levels of education.
Public digital services are moving forward, but not evenly. Cyprus scores 77.6 for digital services to citizens and 86.0 for services to businesses, while access to electronic health records stands at 75.4. Brussels says more work is needed on cross-border services, local government, justice and e-health.
In health, the Commission wants faster delivery of mobile access to electronic health records, digital medical images and discharge documents, while ensuring that online services remain accessible to all social groups.
The report also gives Cyprus a more strategic role in Europe’s digital security map. It highlights the CYQCI quantum communications project and the fact that Cyprus hosts one of the EU’s three Cyber Hubs under the Cyber Solidarity Act. Brussels also points to the island’s importance for submarine cables, as Cyprus seeks to become a connectivity hub in the Eastern Mediterranean.
For that reason, the Commission recommends more investment in submarine cable ecosystems and stronger cybersecurity for critical infrastructure, including undersea networks. It also suggests exploring the use of national quantum communications infrastructure to protect strategic systems.
Cyprus has committed significant funding to the transition. The report says 30% of the country’s €300 million Recovery and Resilience Plan is allocated to digital measures, alongside €100 million from cohesion policy. The total public budget linked to the national Digital Decade roadmap stands at €117 million.
The country has set all 14 available national targets under the Digital Decade framework, with 86% aligned with EU 2030 objectives. Of the 2025 progress indicators, 77% are considered on track.
Public demand is also clear. According to the 2026 Special Eurobarometer, 89% of Cypriots believe digital policy should be a high EU priority, while 93% want stronger cybersecurity, 91% want more digital education and 88% support stricter regulation of online platforms.
For Brussels, the direction is positive. The question now is whether Cyprus can move from strong infrastructure and good intentions to faster adoption in the economy, public services and everyday life.
Source: CNA
