Study: The Netherlands must focus on data and energy-efficient AI

“The Netherlands cannot and should not compete with the United States and China in the race to develop ever larger and more expensive AI language models, nor should it seek to copy that approach.” That is one of the conclusions of a new deep dive study by Invest-NL in collaboration with ROM Nederland. The study shows that the Netherlands is particularly strong in those parts of the AI chain where high-quality data, energy-efficient technology, reliable infrastructure, and specialist knowledge are decisive factors. To capitalize on this position, however, investments and a strong AI industrial policy are necessary.

The study, written by AI expert Stefan Leijnen, analyzes how global AI development is shifting toward new energy-efficient hardware and new data streams and applications that are strongly anchored in physical processes and industrial data. According to the report, the Netherlands can distinguish itself internationally in these areas if it makes strategic choices now.

“The next generation of AI is not about even larger language models, but about models that learn through sensors, robotics, and interaction with the real world. These models will need to be energy-efficient and privacy-friendly,” says author Stefan Leijnen. “That is where the opportunities lie for the Netherlands and Europe.”

Sectors where data and physical processes converge

The deep dive shows that the Netherlands is strongly positioned where physical processes, high-quality data, and high adoption potential converge: agricultural technology, logistics, high-tech manufacturing, energy, and healthcare. These sectors are giving rise to AI applications that are difficult to copy, run on protected data, and are integrated into the physical world.

The report identifies opportunities for the Netherlands:

• Sectors with a physical component, unique data, and high adoption potential, such as science, high-tech manufacturing, healthcare, sustainable energy, and agricultural technology.
• New data streams and data markets, where the Netherlands can leverage its leading position in the field of responsible AI.
• Energy-efficient AI hardware such as photonics and neuromorphic computing, areas in which European and certainly also Dutch companies and knowledge institutions are already recognized worldwide.

Less fragmentation

The study advocates an AI industrial policy that removes barriers and invests specifically where market forces alone fall short. This policy should focus on increasing access to capital for AI startups and scale-ups, with tickets of €20–30 million and more than €100 million for hardware and foundation models, combined with more intensive European cooperation to reduce fragmentation in investments, data, and infrastructure.

In addition, the government must use public demand to accelerate adoption, especially in areas such as healthcare, energy, research, and security, and build public institutions that bring vital data and digital infrastructure under democratic governance.

Finally, the study advocates research into a future-proof AI Gigafactory for edge AI, energy-efficient hardware, and privacy-conscious local computing power, as a strategic foundation for autonomous AI capacity in the Netherlands and Europe.

Targeted investments

Invest-NL and ROM Nederland emphasize that strategic investments are crucial at this time to strengthen this position. “If the Netherlands chooses its own AI course, we can win in the areas where we are strong. Our investment policy will have to focus on larger tickets for AI startups and hardware builders, investing where the market falls short, and connecting parties around a strategic long-term agenda. This deep dive shows exactly where those opportunities lie.”

The report illustrates that a Dutch AI strategy is not only economically sensible, but essential for future security, autonomy, and the protection of European values. The AI deep dive follows earlier publications by Invest-NL on quantum computing, lab-on-a-chip, and semiconductors—all key technologies within the National Technology Strategy. The deep dive series aims to show how and where targeted investments create strategic advantages for the Netherlands.