Italy Data Center Market: Cloud Adoption, Hyperscale Expansion & Growth Outlook

According to IMARC Group's latest research publication, Italy data center market size was valued at USD 6.4 Billion in 2025. Looking forward, IMARC Group estimates the market to reach USD 16.0 Billion by 2034, exhibiting a CAGR of 10.42% during 2026-2034.

How AI is Reshaping the Future of Italy Data Center Market

• Massive investments from tech giants like Microsoft with €4.3 billion and AWS with €1.2 billion are pouring into AI-ready facilities, boosting high-density computing power across regions like Lombardy and Milan to handle demanding workloads efficiently.
• The current IT load capacity stands at around 1.08 GW, but surging AI needs are pushing operators toward advanced setups like liquid cooling and GPU clusters to support faster, more intensive processing for innovative applications.
• Italy's government is driving change through the PNRR plan, allocating €47 billion for digital initiatives including sovereign cloud migration and the National Strategic Hub with €520 million in contracts to keep public data secure and domestic.

Get In-Depth 2026 Industry Insights & Projections

Italy Data Center Market Trends & Drivers:

The Italy data center market is experiencing accelerated expansion driven by major global cloud providers establishing or enlarging their regional presence. As Northern European locations become increasingly congested, Italy offers strategic advantages through its geographic position, robust connectivity, and supportive regulatory environment for foreign investments. Hyperscalers are prioritizing high-density facilities equipped with advanced cooling technologies to handle growing computational requirements. This influx of international capital elevates overall industry standards, fosters innovation in infrastructure design, and positions cities like Milan and Turin as emerging key hubs for cloud services across Southern Europe.

Italy's public sector digital transformation initiatives significantly propel data center development through nationwide efforts to migrate governmental workloads to secure, sovereign cloud environments. Supported by substantial recovery and resilience funding, authorities prioritize domestic data retention and high-reliability infrastructure that meets stringent uptime standards. This creates sustained demand for specialized facilities capable of supporting ministerial applications and GPU-intensive processing. The push encourages deployment of edge nodes in various regions, enhancing localized data handling while aligning with broader goals of modernizing administrative processes and improving public service efficiency.

The surging adoption of artificial intelligence and high-performance computing applications generates substantial demand for energy-efficient, high-density data centers tailored to intensive workloads. Generative AI, machine learning, and related technologies require advanced power and cooling solutions to maintain operational performance. Operators increasingly integrate sustainable practices, such as renewable energy sourcing, to address environmental concerns and regulatory expectations. This trend stimulates innovation in facility design, promotes liquid cooling adoption, and drives overall capacity growth to accommodate evolving technological needs across industries.

Italy Data Center Industry Segmentation:

The report has segmented the market into the following categories:

Analysis by Component:

• Solution
• Services

Analysis by Type:

• Colocation
• Hyperscale
• Edge
• Others

Analysis by Enterprise Size:

• Large Enterprises
• Small and Medium Enterprises

Analysis by End User:

• BFSI
• IT and Telecom
• Government
• Energy and Utilities
• Others

Regional Analysis:

• Northwest
• Northeast
• Central
• South
• Others

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in Italy Data Center Market

• February 2026: Plans advance for a 50MW data center in Certosa di Pavia, marking continued expansion in Lombardy with focus on high-density infrastructure to support growing AI and cloud demands.
• February 2026: Microsoft commences construction of a new data center in Bornasco, enhancing Italy's cloud capabilities through hyperscale investments and improved regional connectivity.
• February 2026: Redelfi partners with WRM Group in a joint venture to develop four data centers integrated with battery energy storage systems (BESS), optimizing energy costs and grid stability through innovative colocation of storage and computing.
• 2025: Vantage Data Centers announces its second Milan campus (MXP2) with €350 million investment, delivering 32MW IT capacity using closed-loop chilled water cooling and air-side economizers for sustainable high-performance operations, with first phase operational in spring 2026.
• 2025: TIM Enterprise commits €1 billion investment through 2027 for data center expansion, including a new AI-ready facility and upgrades to existing sites, boosting edge computing, 5G integration, and sovereign cloud infrastructure for national digital transformation.

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