MILAN (Reuters) – Italy’s data center sector is set to experience a significant boom in investments, with an expected doubling to 10 billion euros ($10.3 billion) between 2025 and 2026, according to a report released by a research hub at Milan Polytechnic University on Thursday. This surge comes as major technology companies unveil ambitious spending initiatives in the country.
However, the report highlighted potential challenges that Italy must address to support these investments. One major concern is the risk of power grid bottlenecks and the relatively high energy costs in the country. The report emphasized the importance of addressing these issues to facilitate the growth of the data center industry in Italy. The availability of affordable power has become a crucial factor in attracting major cloud computing players to the region.
The significance of these developments lies in Italy’s efforts to attract substantial investments from leading technology firms aiming to expand their cloud infrastructure to meet the escalating demand for AI-driven services.
In the context of this trend, Microsoft’s announcement last year to invest 4.3 billion euros in Italy for the development of its cloud network, as well as Amazon Web Services’ commitment to invest 1.2 billion euros over five years, exemplify the increasing interest of tech giants in the Italian market.
Marina Natalucci, director of the data center research hub, underscored the importance of considering the energy supply and sustainability of Italy’s electricity grid in tandem with the growth of robust data infrastructure.
The expansion of these critical infrastructures raises pertinent questions regarding energy provision and the long-term environmental impact on Italy’s electricity network, emphasizing the need for sustainable practices and strategic planning in the sector.
(Reporting by Elvira Pollina; Editing by Keith Weir)
