The European Commission has announced a substantial investment of €865 million under the Connecting Europe Facility (CEF) Digital program, aimed at improving Europe's digital connectivity infrastructure between 2024 and 2027. This funding is part of the EU’s broader strategy to achieve its 2030 Digital Decade objectives, which include ensuring all citizens and businesses across the continent have access to 5G and Gigabit connectivity. The investment seeks to strengthen Europe’s digital backbone by fostering both public and private investments, supporting projects that promote fast, secure, and sustainable digital networks.

Central to this effort is the deployment and upgrade of critical digital infrastructure, including high-performance Gigabit and standalone 5G networks. These networks will enhance the digital capabilities of key sectors like healthcare, manufacturing, and logistics, integrating advanced technologies such as edge computing and cloud capabilities to enable more efficient operations. Additionally, the CEF Digital program places a significant emphasis on boosting Europe’s backbone networks, including submarine cables and quantum communication networks, which are crucial for enhancing the resilience, capacity, and security of cross-border connectivity between EU member states and international partners.

A pivotal player in this ambitious initiative is Portugal, which holds a strategic position in Europe's connectivity landscape. More than 25% of Europe’s undersea cables pass through Portugal, making it a vital hub for digital communication not only within Europe but also with regions such as the Americas and Africa. The country’s geographic location as a key Atlantic gateway makes it a natural point of connection for many of the submarine cables that underpin Europe’s international data traffic. These cables form the backbone of global digital infrastructure, handling vast amounts of internet and communication services essential to business, government, and everyday life.

Portugal’s role in the EU’s digital connectivity strategy is being bolstered by the investments supported through the CEF Digital program. With key submarine cable landing stations in places like Sines, Sesimbra, and Carcavelos, Portugal facilitates the flow of data between Europe and the rest of the world, enhancing the overall performance and security of Europe’s digital networks. This positions the country as a critical node in the EU’s push to create a robust, high-performance digital ecosystem that can withstand potential cyber threats and physical disruptions, ensuring that Europe’s connectivity remains strong and secure in an increasingly digitalized world.

As Europe seeks to strengthen its digital sovereignty, secure and resilient digital networks, including those reliant on submarine cables, are critical for maintaining competitiveness on the global stage. The EU’s investment in submarine cable infrastructure, including quantum communication networks, aims to make these systems more resilient to cyberattacks and more capable of handling the increasing volumes of data being transmitted. This aligns with the EU's broader geopolitical strategy of addressing vulnerabilities in its digital infrastructure while promoting technological independence from external powers.

Portugal’s involvement in a significant portion of Europe’s undersea cable network is also an important step toward fulfilling the EU's 2030 Digital Decade goals. The investment in digital connectivity enables the country to play a leading role in advancing the EU’s agenda of providing universal high-speed internet access, supporting the deployment of new technologies, and driving the digital transformation of critical sectors. This has the potential to elevate Portugal’s position as a leader in digital infrastructure within Europe, while also contributing to the broader goal of creating a more connected and competitive Europe.

The €865 million investment marks a significant milestone in Europe’s journey toward building a more integrated, secure, and high-performance digital infrastructure. With a total budget of €2 billion allocated to CEF Digital until 2027, the program has already supported 65 key projects, including 30 focused on strengthening Europe’s backbone connectivity. These investments are essential for closing the current gap in funding for high-performance networks, which are critical to enabling the widespread adoption of advanced technologies by European citizens and businesses.

As Europe moves forward in its digital transformation, the role of countries like Portugal in supporting the development of digital infrastructure will become even more crucial. By acting as a key hub for undersea cables and other critical infrastructure, Portugal is helping to ensure that Europe remains at the forefront of global digital connectivity, ready to meet the challenges of a rapidly evolving digital landscape. This investment underlines Europe’s commitment to building a future where digital networks are fast, secure, and accessible to all, positioning the continent as a leader in the global digital economy.

Author

Paulo Lopes is a multi-talent Portuguese citizen who made his Master of Economics in Switzerland and studied law at Lusófona in Lisbon - CEO of Casaiberia in Lisbon and Algarve.

Paulo Lopes