Italy is poised to see a doubling of investments in its data centres, reaching €10 billion by 2025-2026. This significant growth, revealed by Milan Polytechnic University’s research hub, underscores increasing spending by global technology giants. However, the country faces critical challenges, including power grid bottlenecks and high energy costs, which could hinder progress.
The report highlighted the appeal of affordable energy, now a key factor for large cloud developers looking to expand. Addressing these issues is vital for Italy to remain competitive in attracting global technology investments.
Why it matters
Tech giants are racing to increase cloud capacity, driven by the growing demand for artificial intelligence (AI) services. Italy aims to become a hotspot for this investment surge, but success hinges on its ability to overcome energy infrastructure challenges.
Context
Microsoft announced a €4.3 billion plan last year to expand its Italian cloud network. Amazon Web Services (AWS) committed €1.2 billion over five years for similar initiatives.
Key quote
“The development of increasingly powerful infrastructures raises questions about energy supply and sustainability,” said Marina Natalucci, director of Milan Polytechnic’s research hub.