This study examines the evolving role of digital innovation hubs (DIHs) as territorial intermediaries within the European Union’s (EU’s) digital transformation strategy. DIHs, designed to foster digital innovation and support the digitalisation of small and medium-sized enterprises (SMEs), are pivotal actors in aligning European digital policies with the specific needs of regional ecosystems. Through a qualitative analysis based on 43 in-depth interviews with DIH and European digital innovation hubs (EDIH) representatives, European Commission stakeholders and DIH network coordinators, this research explores the mechanisms through which DIHs facilitate digitalisation and act as crucial intermediaries. Our findings reveal the diverse roles played by DIHs—as promoters, facilitators and enablers—adapting their strategies to address regional disparities in digital maturity. Despite their significant contributions, our analysis highlights persistent mismatches between EU policy objectives and local implementation, particularly in less digitally advanced regions. This study contributes to refining the concept of territorial intermediation by emphasising the need for flexible, context-specific approaches to maximise the impact of DIHs. Policy implications underscore the importance of tailored support mechanisms, proactive needs assessment and enhanced cooperation to effectively bridge regional digital gaps and foster a more inclusive digital transformation across Europe.