Italy data center investment projected to reach €36.9 billion by 2036

Italy is positioned to become a significant European hub for data centers, driven by the rising demand for artificial intelligence and cloud computing. According to research from the Italian Datacenter Association, the sector could see approximately €36.9 billion ($41.5 billion) in capital investment through 2036. Commercial capacity is projected to grow fivefold, potentially reaching 2.3 GW by 2031.

Milan and the Lombardy region remain the primary centers of activity, hosting over 80% of the country's current capacity. However, expansion is also being noted in regions such as Piedmont, Puglia, and Sardinia. The growth of this infrastructure is expected to have a substantial impact on the labor market, with estimates suggesting the sector could support roughly 26,000 full-time equivalent jobs by 2036.

Despite the optimistic forecasts, significant challenges remain. The industry faces bottlenecks regarding access to the national electrical grid, the availability of suitable land, and regulatory permitting processes. Furthermore, a shortage of specialized technical skills has been identified as a major obstacle to converting planned projects into operational facilities. Globally, the sector is seeing massive investment from tech giants like Amazon, Alphabet, Microsoft, Meta, and Oracle, though some analysts warn of financial risks if AI revenue growth does not match the rapid pace of infrastructure spending.