Italy data center industry expansion and grid challenges

Italy’s data center sector is projected to attract approximately €36.9 billion in capital investment through 2036, driven by demand for cloud computing and artificial intelligence. Commercial capacity is expected to increase from 460 megawatts in 2025 to roughly 2.3 gigawatts by 2031, potentially supporting 26,000 full-time equivalent jobs by 2036. While Milan and the Lombardy region host over 80% of current capacity, expansion is spreading to Piedmont, Puglia, and Sardinia. Piedmont has emerged as a significant competitor to the saturated Milanese market, surpassing Lazio with over 64 connection requests totaling more than 13 GW, aided by decommissioned industrial areas and existing high-voltage nodes. In Trentino, the Intacture facility in Predaia represents a sustainable innovation. This public-private project between Trentino DataMine and the University of Trento, costing over 50 million euros (including 18 million from PNRR funds), is constructed 100 meters underground within an active dolomite mine. The facility utilizes a free cooling system to reduce electricity consumption, equivalent to the annual needs of approximately 900 families, while providing natural protection from weather and electromagnetic interference. However, the industry faces critical infrastructure bottlenecks and rising social resistance. Terna data indicates a surge in grid connection requests, rising from 30 GW at the end of 2024 to 96 GW by July 2026, exceeding the national grid’s 60 GW peak capacity. Additionally, local opposition is growing; in San Bovio, near Milan, over 4,000 residents signed a petition against a planned Microsoft data center, citing concerns over noise and light pollution. This movement is part of the ‘Stop Data Center’ network, which recently held a national demonstration in Milan. New challenges have emerged regarding the digital workforce.