HomeMarket NewsEU Regulator Approves Massive State Aid for European Cloud Computing Project

EU Regulator Approves Massive State Aid for European Cloud Computing Project

Actionable Trade Ideas

always free

European Union flag in front of the Berlaymont building, headquarters of European Commission.

arcady_31

The European Commission has given the green light to a whopping €1.2 billion in state aid for a groundbreaking European cloud computing project.

The project, known as the Important Project of Common European Interest, or IPCEI, Next Generation Cloud Infrastructure and Services (IPCEI CIS), was jointly proposed by seven EU member states – France, Germany, Hungary, Italy, the Netherlands, Poland, and Spain.

The European Commission, or EC, stated that the project aims to drive research, development, and the initial industrial deployment of advanced cloud and edge computing technologies across multiple providers in Europe.

The member states will be contributing up to €1.2 billion in public funding, with the expectation that this will stimulate an additional €1.4 billion in private investments. As part of this IPCEI, 19 companies, including small and medium-sized enterprises (SMEs), will undertake 19 innovative projects, as highlighted by the EC.

The agency emphasized that the IPCEI CIS represents the maiden IPCEI in the cloud and edge computing domain, and is geared towards developing the first interoperable and openly accessible European data processing ecosystem – the multi-provider cloud to edge continuum.

“The IPCEI approved today is crucial to deliver breakthrough innovation on Cloud and Edge technologies that fulfil European requirements for interoperability, data privacy, sustainability and cybersecurity. It will also provide the technologies and solutions to reach our Digital Decade Strategy 2030 objectives: a 75% of cloud uptake by EU enterprises and more than 10.000 edge nodes across Europe,” expressed Thierry Breton, commissioner for Internal Market of the EU.

The EC also noted that the project will play a pivotal role in the development of data processing capabilities, as well as software and data sharing tools that enable federated, energy-efficient, and trustworthy cloud and edge distributed data processing technologies and related services.

In addition, the innovations are expected to have a significant impact on advancing digital and green transitions in Europe.

The 19 companies selected for the project include French companies Atos (OTCPK:AEXAY) (OTCPK:AEXAF) and Orange (ORAN) (OTCPK:FNCTF), Germany’s SAP (SAP) (OTCPK:SAPGF), Siemens (OTCPK:SMAWF) (OTCPK:SIEGY), Deutsche Telekom (OTCQX:DTEGY) (OTCQX:DTEGF), Italy’s Telecom Italia (OTCPK:TIIAY) (OTC:TIAIY), and Spain’s Telefonica Espana.

It’s critical to note that the three giants dominating the cloud computing sector are Amazon.com (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT), and Alphabet’s (NASDAQ:GOOG) (GOOGL) Google.

Interestingly, recent reports revealed that Google wrote a letter to the UK’s Competition and Markets Authority, urging them to take action against Microsoft (MSFT) due to its alleged business practices that purportedly placed competitors at a significant disadvantage.

Swing Trading Ideas and Market Commentary

Need some new swing ideas? Get free weekly swing ideas and market commentary from Jonathan Bernstein here: Swing Trading.

Explore More

Weekly In-Depth Market Analysis and Actionable Trade Ideas

Get institutional-level analysis and trade ideas to take your trading to the next level, sign up for free and become apart of the community.