With a robust technological ecosystem, world-class research institutions, the region is becoming a prime destination for AI-driven innovation and investment.
As the economic engine of Spain, Madrid generates over 20% of the national GDP and hosts 40% of all foreign multinationals operating in the country. Its strategic location, business-friendly policies, and highly skilled workforce make it an ideal gateway for companies looking to expand their AI and digitalisation initiatives across Europe and Latin America.
AI & Tech Ecosystem
Madrid is home to a thriving AI and digital technology ecosystem, supported by:
✔️ 260,000+ professionals in the tech industry, ensuring a strong talent pipeline.
✔️ 26% of Spain’s total R&D investment, with €4.2 billion allocated to innovation.
✔️ Over 40 research centers and 30 university hospitals conducting cutting-edge AI research.
✔️ 6 science and technology parks, fostering AI-driven startups and corporate R&D.
The region also benefits from world-class digital infrastructure, with 98% optical fiber penetration and a growing network of data centers, making it a leading data and cloud computing hub in Southern Europe.
Government & Institutional Support for AI & Digital Innovation
Madrid’s pro-business environment is key to its rapid digital transformation. The regional government has implemented investment-friendly policies, tax incentives, and funding programs to accelerate AI adoption and digitalisation.
Key initiatives include:
- The Madrid Digital Strategy – A roadmap for digital transformation, prioritising AI, cloud computing, and cybersecurity.
- Spain’s Startups Law – Offering tax benefits and funding to AI and tech startups.
- Public-Private Partnerships (PPP) – Encouraging collaboration between government, businesses, and research institutions to drive AI innovation.
Madrid continues to strengthen its position as a leading hub for artificial intelligence (AI) and digital transformation in Europe. The region’s commitment is evident through substantial investments, innovative university projects, and a supportive environment for AI research and development.
Funding Initiatives
- Grants for Training Programs in AI: The Community of Madrid offers aid to small and medium-sized enterprises (SMEs) for developing training programs in AI. These grants are part of the Territorial Networks of Technological Specialization program within the PRTR Framework, funded by the European Union’s Next Generation EU initiative.
University-Led AI Projects and Research Centers
Madrid’s universities are at the forefront of AI research and innovation:
- Centro Nacional de Neurotecnología (Spain Neurotech): Established in December 2024 at the Universidad Autónoma de Madrid (UAM), this center aims to become an international benchmark in neurotechnology by integrating neuroscience, AI, and ethics. With a budget of €200 million until 2037, it focuses on developing technological tools to combat neurological diseases such as autism, Parkinson’s, and Alzheimer’s.
- Cátedra ENIA UAM-VERIDAS en IA Responsable: Launched in January 2023, this chair focuses on enhancing the robustness and security of biometric systems against threats like deepfakes and backdoor attacks. It also addresses reducing biases in AI models. The project is funded with approximately €800,000 until December 2026.
- AI Summer School at CUNEF Universidad: Scheduled from June 30 to July 18, 2025, this program offers participants a comprehensive understanding of AI, covering topics from machine learning to natural language processing. It includes practical experience with Python programming and data analytics, aiming to equip attendees with skills applicable across various industries.
Collaborative AI Initiatives and Innovation Hubs
Madrid fosters collaboration between academic institutions, government bodies, and the private sector to drive AI innovation:
- AI Cluster at UC3M’s Science Park: In March 2025, the Universidad Carlos III de Madrid (UC3M) and the Leganés City Council inaugurated Spain’s first AI cluster at the UC3M Science Park in Leganés. Comprising over 40 companies and institutions, the cluster aims to enhance business efficiency and innovation through AI, reinforcing Leganés as an international AI reference point.
European Union Support for Deep Tech and AI
The European Union is investing significantly in the deep tech sector, which includes AI:
- €1.4 Billion Investment in Deep Tech: Announced in October 2024, the EU plans to invest €1.4 billion in the region’s deep tech sector in 2025 through the European Innovation Council (EIC). This funding aims to support breakthrough innovations and keep pace with global tech leaders.
Madrid’s dedication to AI and digitalization is evident through these substantial investments, collaborative projects, and educational initiatives. The region offers unparalleled opportunities for companies and researchers aiming to thrive in the evolving digital landscape.
Why Invest in Madrid’s AI & Digitalisation Sector?
Madrid offers unique advantages for companies looking to invest, innovate, and expand in AI and digital transformation:
✔️ A Gateway to Europe & Latin America – Madrid provides direct access to more than 1.6 billion consumers across these high-growth markets.
✔️ Business-Friendly Environment – Madrid has one of the most competitive tax systems in Europe, with incentives for AI-driven R&D and digitalisation projects.
✔️ Competitive Talent & Labour Costs – Madrid offers highly qualified professionals at a lower cost than other major European tech hubs.
✔️ A Leading Hub for AI & Cybersecurity – With the creation of Madrid’s Cybersecurity Agency and AI research centers, the region is reinforcing its position as a global leader in digital security and AI ethics.
Madrid: The Future of AI & Digitalisation
Madrid is not just adapting to digital transformation—it is leading it. With a strong AI ecosystem, government backing, and a skilled workforce, the region offers unparalleled opportunities for companies looking to thrive in the digital era.