Italian Data Centre Market Booms to Meet European Demand

Data centre demand is continuing to rapidly expand across Europe. As a result, plenty of companies are seeking to invest in the region to boost connectivity for customers, in addition to growing their European data centre presence.

Italy is one such example, with the country currently hosting 168 data centres due to offering an important connection between Europe and Africa via submarine cables. Many of these are colocation facilities, with the majority located in and around the city of Milan.

As one of the fastest-growing data centre markets in Western Europe, Italy is reaping the rewards of its 2023 surge in demand for Italian businesses. With the country keen to remain a hub of future-led data centre growth, leading companies like Schneider Electric, Colt Technology Services, GTT Communications and BT will continue to invest.

European data centres continue to surge

The European data centre market is continuing to grow, after achieving its largest ever Q2 in 2023, with record take-up across Europe’s leading markets of Frankfurt, London, Amsterdam, Paris and Dublin (FLAPD).

Italy, however, is very well-positioned to capitalise on this growth, with the country’s data centre revenue expected to show an annual growth rate of 5.78% between 2024-2028, according to Statista. This will result in a market volume of US$7.30bn by 2028.

Research and Markets’ Italy Data Center Market Analysis & Opportunities Report 2022-2023 & 2028 previously predicted that the Italian data centre market would reach a value of US$3.65bn by 2028 - an increase from US$3.01bn in 2022.

In fact, according to a study by Milan Polytechnic, investments in the Italian data centre industry are projected to soar to €15bn (US$19bn) by 2025.

Reasons for such rapid growth include the diversity on offer within Italy’s data centre market for both local and international operators in the country. As a result, customers can choose from a wide range of data centre options, including colocation, managed services and hyperscale facilities.

Such competition enables faster innovation and enables customers to keep their data centre operations flexible and cost-effective.

Some of the leading companies investing in data centres include Assago, Akamai Technologies and Colt Technology Services, Aruba, STACK Infrastructure and Microsoft.

Technology trends impacting these businesses include increased adoption of cloud services, with many Italian companies moving their IT infrastructure to the cloud to leverage better scalability and data security.

Likewise, the rise of new technologies such as the Internet of Things (IoT) and edge computing is leading to greater demand for data centre companies. These services enable faster data processing and reduced latency, which is extremely important for key industries like automation, manufacturing and electric vehicles (EV).

With the market showing no signs of slowing down, data centres across Italy can expect to become even more popular for global business transformation.

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