EC approves €1.2 billion in state aid for cloud computing

The European Commission on Tuesday approved state aid worth up to €1.2 billion in total for cloud and edge computing technologies being developed in seven EU states, including Germany, reported dpa.

The project "will provide for highly ambitious research, necessary to enable the uptake of innovative data processing applications and services," EU Competition Commissioner Didier Reynders said.

The results are to be used by European businesses, public administrations and citizens, Reynders added.

Nineteen companies in France, Germany, Hungary, Italy, the Netherlands, Poland and Spain are to benefit from the subsidies, which are expected to be matched with €1.4 billion in private investments.

German businesses Deutsche Telekom, SAP and Siemens are direct participants in the project, the commission said.

The project is to run until 2031 and "at least 1,000 direct and indirect highly qualified jobs are expected to be created," the commission said.

The European Union usually has strict limits for state aid, however different rules apply for highly innovative projects of strategic interest.