Italy Data Center Server Market: Cloud Adoption, AI Workloads & Growth Outlook

According to IMARC Group's latest research publication, Italy data center server market size is projected to exhibit a growth rate (CAGR) of 5.23% during 2025-2033.

How AI is Reshaping the Future of Italy Data Center Server Market

• Massive investments from tech giants like Microsoft with €4.3 billion and AWS with €1.2 billion are pouring into high-density AI-ready facilities across regions like Lombardy and Milan to handle surging GPU workloads.
• Italy's current IT load capacity stands at around 1.08 GW, but explosive AI demand is pushing operators toward advanced liquid cooling and high-power racks that support intensive server computations for machine learning tasks.
• The government's PNRR plan, backed by €191.5 billion overall and specific digital funds, drives public sector migration to sovereign clouds, requiring certified domestic servers that prioritize data residency and AI integration for government services.

Get In-Depth 2026 Industry Insights & Projections

Italy Data Center Server Market Trends & Drivers:

The Italy data center server market is experiencing robust expansion driven by accelerated hyperscale cloud deployments from global providers seeking alternatives to saturated Northern European locations. Major cloud operators are establishing dedicated regions and campuses, particularly in strategic areas like Lombardy and Milan, to support scalable computing needs. This influx fosters advanced server infrastructure adoption, including high-density configurations optimized for cloud workloads. Enhanced connectivity through terrestrial and submarine cable upgrades further bolsters Italy's appeal as a reliable hub, enabling efficient data transfer and server performance across distributed environments. As enterprises increasingly rely on cloud-based applications, demand for powerful, versatile servers continues to rise in response to these infrastructure developments.

Italy's public sector digital transformation initiatives, supported by national recovery plans, are propelling significant migration of governmental and ministerial workloads to secure, domestic cloud environments. This shift necessitates compliant, high-availability server setups that prioritize data sovereignty and uptime reliability. Sovereign cloud projects and contracts for migrating critical applications stimulate investments in specialized server hardware capable of handling regulated workloads with stringent security features. The emphasis on local data retention encourages deployment of robust server solutions in Tier-certified facilities, ensuring seamless integration with public administration systems. Consequently, server demand grows in tandem with these nationwide efforts to modernize administrative processes and enhance digital service delivery.

The surge in artificial intelligence and high-performance computing applications is creating strong momentum for advanced server technologies tailored to intensive processing requirements. Generative AI, machine learning, and related workloads demand servers equipped with accelerated capabilities and efficient cooling mechanisms to manage elevated power densities. Facilities are increasingly incorporating innovative designs to accommodate these computational demands while addressing energy considerations. This trend drives the evolution toward more specialized server architectures that support emerging AI ecosystems across industries. As adoption spreads, the market sees heightened focus on scalable, future-proof server solutions that align with Italy's positioning in advanced digital innovation.

Italy Data Center Server Industry Segmentation:

The report has segmented the market into the following categories:

Form Factor Insights:

• Blade Server
• Rack Server
• Tower Server

End-User Insights:

• IT & Telecommunication
• BFSI
• Government
• Media & Entertainment
• Others

Regional Insights:

• 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 Server Market

• February 2026: Microsoft commences construction on a major data center in Bornasco, part of its €4.3 billion investment to expand AI and cloud infrastructure in northern Italy, positioning the region as one of its largest in Europe with enhanced support for high-density server deployments.
• February 2026: Plans progress for a 50MW data center in Certosa di Pavia, incorporating advanced power and cooling innovations to address AI workloads, though sparking local discussions on infrastructure integration.
• November 2025: Oracle launches its second public cloud region in Turin, enabling broader access to AI-optimized servers and generative AI services on Oracle Cloud Infrastructure, complementing its Milan region for improved latency and sovereign data handling.
• November 2025: Italian utility A2A elevates its investment plan to €23 billion through 2035, allocating €1.6 billion specifically to develop and manage data centers, focusing on sustainable power supply innovations to meet surging server demand from hyperscalers.
• October 2025: Vantage Data Centers commits over €350 million to a second Milan campus featuring two facilities with 32MW combined IT capacity, introducing modern, scalable server designs set to become operational in phases starting spring 2026.

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