Italy sees €10 billion data centre boom

Rome: Italy is poised to see a dramatic rise in data centre investments, with spending expected to double to €10 billion between 2025 and 2026, according to Milan Polytechnic University.

The increase in funding is fuelled by global technology giants expanding their cloud capabilities to meet surging demand driven by AI.

Recent commitments include Microsoft’s €4.3 billion plan to grow its cloud network in Italy and Amazon Web Services’ €1.2 billion investment over five years. These projects highlight Italy’s potential as a hub for cloud development. However, challenges such as high energy costs and potential power grid bottlenecks could hinder the country’s ability to fully capitalise on these opportunities.

Experts warn that the sustainability of Italy’s electricity grid will play a critical role in accommodating the expansion of powerful cloud infrastructure. Despite these hurdles, the investment wave signals growing confidence in Italy’s tech ecosystem, reflecting its strategic importance in Europe’s digital transformation.