Published by Global Banking & Finance Review®
Posted on January 16, 2025
1 min readLast updated: January 27, 2026
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Italy's data centre investments will double to €10 billion by 2025-26, driven by major tech firms. Challenges include power grid issues and energy costs.
MILAN (Reuters) - Investments into Italy's data centres will double to 10 billion euros ($10.3 billion) in the 2025-2026 period compared with the previous two years as technology heavyweights roll out spending plans, a research hub of Milan Polytechnic University said on Thursday.
The country however has to tackle potential power grid bottlenecks and high energy costs to support investments in the country, the report said, adding that access to cheap power has emerged as increasingly attractive for large cloud developers.
WHY DOES IT MATTERS
Italy is looking to attract investments from heavyweight technology firms, which are keen to boost their cloud capacity to meet growing AI-driven demand.
CONTEXT
Last year Microsoft announced a plan to invest 4.3 billion euros in Italy to develop its cloud network there. Amazon Web Services (AWS) said it would invest 1.2 billion euro over five years.
KEY QUOTES
"The development of increasingly powerful infrastructures raises questions about their energy supply and the sustainability of the Italian electricity grid," said Marina Natalucci, director of the data centre research hub.
($1 = 0.9718 euros)
(Reporting by Elvira Pollina; Editing by Keith Weir)
The article discusses Italy's data centre investments doubling to €10 billion by 2025-26, highlighting challenges like power grid bottlenecks and energy costs.
Investments are increasing due to the growing demand for cloud capacity driven by AI and the interest of major tech firms in expanding their infrastructure.
Italy faces challenges such as potential power grid bottlenecks and high energy costs, which need to be addressed to support these investments.
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