Italy’s data center sector forecasts $41.5 billion in investment by 2036

Overview

The Italian Datacenter Association has published a study forecasting $41.5 billion in investment in the country's commercial data centers by 2036. The growth is driven by demand for artificial intelligence workloads and cloud computing services.

Market Outlook

The study projects a fivefold capacity jump in Italy's commercial data centers, with a focus on Lombardy and Sardinia. The region's data center market is expected to attract significant investment, with government-linked program investments of €6.8 billion tied to Lombardy and Sardinia.

Challenges

However, the sector faces challenges such as grid capacity, energy infrastructure, and regulatory hurdles. The industry's own track record adds to the caution, with a realization rate of 68% between 2023 and 2025.

Government Support

The Italian government has taken steps to address these issues, including giving data centers priority treatment and fast-tracking permits. The measures aim to make Italy more attractive for data center investment.

Implications

The study's findings have implications for investors and the region. The 68% realization rate suggests that announced capacity should be discounted, and the companies that secure power will hold a real advantage. The growth of advanced-stage capacity is also crucial, with 2.3 gigawatts of operating IT capacity expected by 2031.

Conclusion

The Italian data center sector's growth is driven by demand for artificial intelligence workloads and cloud computing services. However, the sector faces challenges such as grid capacity, energy infrastructure, and regulatory hurdles. The Italian government's support measures aim to address these issues and make Italy more attractive for data center investment.