Published by Global Banking & Finance Review®
Posted on October 17, 2025
2 min readLast updated: January 21, 2026
Add as preferred source on GoogleMilan's data centre capacity is set to increase tenfold over five years, driven by AI demands and supported by A2A's energy supply.
MILAN (Reuters) -Data centres around Italy's financial capital Milan are expected to add around two gigawatts of capacity over the next five years, a tenfold increase from current levels, the Chief Executive of energy group A2A said on Friday.
The rapid expansion of data centres, needed to drive artificial intelligence, promises to boost revenues for utilities like A2A, which will supply the electricity they need.
The province of Milan currently hosts about 200 megawatts of installed data centre capacity, while the city's peak electricity demand currently stands at 1.5 GW.
The new facilities will be connected to Italy's high-voltage grid or directly to power plants, avoiding strain on the local distribution network managed by A2A, CEO Renato Mazzoncini said.
To meet the rising demand, the local authorities are supporting a ramp up in renewable generation and an increase in thermal capacity.
"We already have more than 3 gigawatts of additional thermoelectric power either built, under construction or authorised in the region," Mazzoncini, speaking at an event in Milan, said.
Despite Italy's higher electricity costs compared to other European countries, the executive said data centre developers are not deterred.
"The cost of electricity is converging across Europe. A solar panel or wind turbine produces at the same cost in Spain, Italy or Ireland. That's where the world is heading," he said. He also said that operators can also secure power through purchase agreements with utilities.
A2A is Italy's third largest utility in terms of customer numbers and the largest in Lombardy, the region around Milan.
(Reporting by Francesca Landini. Editing by Jane Merriman)
A data centre is a facility used to house computer systems and associated components, such as telecommunications and storage systems, providing services like data storage, processing, and management.
Renewable energy is energy generated from natural resources that are replenished at a faster rate than they are consumed, such as solar, wind, and hydroelectric power.
Electricity supply refers to the provision of electrical power to consumers, which can include homes, businesses, and industries, typically managed by utility companies.
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