At the meeting of the Coordination Council for Large and Strategically Significant Investment Projects (LIP), the participation of the Republic of Latvia and Latvia’s largest information and communication technology companies in the Northern-European consortium was conceptually approved. The consortium aims to establish large-scale artificial intelligence (AI) data centre infrastructure in Latvia.
The consortium will also include Finnish companies Verda (formerly DataCrunch Oy) and NOKIA. Support for participation in the consortium was secured at the LIP meeting held on Thursday, 27 November, chaired by the Prime Minister in the Cabinet of Ministers.
The Investment and Development Agency of Latvia (LIAA) was designated as the responsible institution for project coordination, while the Ministry of Economics (MoE), together with the Ministry of Smart Governance and Regional Development (VARAM), is tasked with preparing a letter to the European Commission expressing Latvia’s support for the Northern-Europe consortium. Collaboration is also planned in preparing an application for the EuroHPC call for proposals for AI infrastructure construction in Latvia, following project approval and funding allocation.
During the meeting, several other important issues related to projects of significance for Latvia’s economic development in transport, defence, and innovation were also considered. For example, further progress on SIA MilTech’s investment project was supported. This project is an initiative of Latvia’s defence industry aimed at developing production facilities for military and dual-use technologies to strengthen national security, attract investment, and create high value-added jobs.
Several reports on defence sector investment projects were noted for information – SIA Valsts Aizsardzības Korporācija reported on the progress of the Rheinmetall project, while the Ministry of Defence reported on the Diehl Defence project.
Minister of Economics Viktors Valainis: “Latvia is taking a very significant step in strengthening its digital and economic security. Participation in the Northern-European consortium to establish an AI data centre is more than just a technological project – it is a strategic decision that will strengthen our country’s position in the European technology space, promote investment, and create a new growth platform for entrepreneurs. At the same time, we are advancing important defence and dual-use projects that enhance Latvia’s resilience and increase the capacity of the local industry. These projects demonstrate that Latvia is a reliable partner for implementing large-scale international investments.”
Ieva Jāgere, Director of the Investment and Development Agency of Latvia (LIAA): “Latvia’s portfolio of strategic investments is currently experiencing the fastest growth in recent years. The AI data centre initiative with DataCrunch Oy and NOKIA is not only a technological leap but also a clear signal to international investors that Latvia is capable of executing complex, capital-intensive, European-scale projects. LIAA will coordinate the entire process, ensuring that Latvia takes full advantage of this opportunity, strengthening digital infrastructure, export capacity, and creating new high value-added jobs.”
The Ministry of Economics reported on the current situation and proposed amendments to improve the “green corridor” regulations. MoE has prepared proposals to revise the qualification criteria for companies to ensure that the benefits of the “green corridor” are provided purposefully, reaching the intended target group and promoting more efficient use of public service provider resources. The export volume threshold is expected to increase from EUR 5 million to EUR 10 million, and the previously required investment criterion will be removed from the qualification criteria.
In the future, companies with planned projects in EU strategic sectors will qualify for public priority services. The “green corridor” regulation will continue to apply to priority projects and military production projects. If the proportion of priority project applications exceeds 30% of all applications, priority will be given to military production projects and projects according to investment size. This is expected to reduce the number of companies served on a priority basis and the workload for direct and indirect public administration authorities providing priority public services to companies. The amendments to improve the “green corridor” regulations are still under review before submission to the government.
For information, the Ministry of Transport’s report on cooperation with Škoda Group for the establishment of a Baltic regional technical maintenance centre in Latvia was noted, as well as a report on risk-sharing and marketing support programs to improve Latvia’s aviation connectivity.