Echelon Enters Italy with €3bn Milan Data Centre Investment

Echelon Data Centres has announced its expansion into the Italian market with plans to develop a major data centre campus near Milan. 

The €3bn (US$3.5bn) investment, in partnership with controlled affiliates of Starwood Capital Group, is one of Italy’s largest digital infrastructure developments and the next phase of Echelon’s European growth strategy.

The company has acquired a 37-acre site strategically located close to Milan with immediate grid power availability. 

The new facility, known as the LIN10 campus, will have a total electrical capacity of 250 megavolt-amperes (MVA), with 100 MVA ready to use through an existing onsite substation. 

Construction is expected to begin immediately, with operations targeted to commence within 18 to 24 months.

Expanding Echelon’s European footprint

The development marks Echelon’s first entry into continental Europe and follows the company’s €2bn (US$2.3bn) joint venture with Spanish energy firm Iberdrola to deliver large-scale data centres in Spain. This expansion reflects Echelon’s strategy to establish a robust network of high-capacity facilities across key European markets to meet growing demand from hyperscale and AI-driven operators.

“Echelon is very pleased to partner with Starwood Capital to enter this new market,” says Niall Molloy, CEO of Echelon. 

“LIN10 has in place grid power, scale and flexibility, which makes it one of the most attractive projects in Europe. It is ready to build and offers exceptional opportunities for hyperscale operators. 

“We expect to start construction imminently and have the facility operational in 18 to 24 months. Everyone at Echelon is delighted to have secured our first development site in continental Europe.”

Niall’s comments highlight Echelon’s focus on delivering sites with immediate power availability – a key advantage as data centre operators across Europe face growing challenges in securing grid connections. 

The Milan site positions the company to serve cloud, AI and enterprise customers seeking scalable, low-latency infrastructure in one of Europe’s emerging digital hubs.

Meeting surging demand in Milan

The Italian data centre market, particularly around Milan, is experiencing rapid expansion due to increased enterprise digitalisation, cloud adoption and the integration of AI workloads. 

Proximity to financial, manufacturing and technology sectors makes the Lombardy region an attractive destination for operators seeking sustainable and high-performance infrastructure.

“Entering the Italian market is another significant milestone on Echelon’s growth trajectory, and we are delighted to have made this strategic step,” says David Smith, Chief Investment Officer at Echelon. “We have a strong pipeline of exciting opportunities across Europe and expect to add additional markets over the next 24 months to continue to support the growth of our customers.”

David’s statement underscores the company’s broader ambition to deliver large-scale digital infrastructure across Europe. With hyperscale and AI demand increasing, Echelon’s focus remains on providing power-secure, ready-to-deploy capacity in regions with strong energy and connectivity frameworks.

Partnership to accelerate growth

The Milan development is being supported by Starwood Capital Group, which brings global investment expertise and a strong understanding of infrastructure markets. The partnership enables Echelon to accelerate delivery of the LIN10 campus and strengthen its position among the leading independent data centre developers in Europe.

“We believe in the fundamental growth drivers of the Milan data centre market,” says Maximilian Gentile, Senior Vice President at Starwood Capital. 

“Demand for data centre capacity continues to grow exponentially globally and this investment demonstrates Echelon’s commitment to delivering power and scale to help customers meet the requirements of an increasingly AI-driven digital economy.”

The collaboration reinforces the confidence both companies have in Milan’s potential to become a major data centre hub, supported by its central European location and strong renewable energy mix. 

The LIN10 campus will support the increasing computing demands of AI, machine learning and cloud infrastructure while maintaining a focus on power efficiency and sustainability.

Scaling capacity across Europe

Echelon’s entry into Italy adds to a growing portfolio of data centres across Ireland, the UK and Spain. The company currently operates or is developing seven facilities with a combined capacity of approximately 1.25GW. With the addition of LIN10, Echelon aims to develop a further 1.5GW of capacity in new markets over the next five years.

The Milan project strengthens Echelon’s position as one of Europe’s most ambitious data centre developers, focused on enabling digital transformation through scalable and sustainable infrastructure. By combining immediate power access with long-term expansion potential, the company continues to align its strategy with the needs of the hyperscale and AI sectors driving Europe’s next wave of data growth.