Microsoft has announced plans to invest €4.3 billion over the next two years to expand its hyperscale cloud and AI data center infrastructure in Italy, marking its biggest investment in the country yet.
The move means that Italy North will become one of Microsoft’s largest data center regions in Europe, with the development playing a crucial role in meeting European data boundary requirements. It will also serve as a key data hub for the Mediterranean and North Africa, the tech giant confirmed.
"This landmark investment underscores our long-standing commitment to Italy’s digital transformation," said Brad Smith, vice chair and president of Microsoft.
"By expanding access to our AI technology and expertise, we are equipping the Italian government, businesses, and the broader workforce with the tools to build an AI-driven economy that creates jobs and drives prosperity."
The company is also pushing its green credentials as part of the investment scheme, signing three power purchase agreements (PPAs) for renewable energy, and looking for more. Its data centers are registered under the EU Code of Conduct for energy efficiency and the use of direct evaporative cooling systems to help reduce water use.
Water is used for cooling less than 5% of the year, Microsoft said, and is mostly harvested rainwater that's discharged back to the local wastewater utility treatment plant.
Northern Italy is emerging as a hotspot for data centers, with Amazon Web Services (AWS), Oracle, Equinix, and Google all launching cloud regions in the area over the last four years.
Microsoft eyes digital skills boost in Italy
Microsoft also revealed it will provide digital skills training to more than a million Italians by the end of 2025 through collaboration with certified training services partners, industry partners, universities, non-profit organizations, government institutions, and associations.
The focus of this training will be on AI fluency, technical AI skills, AI business transformation, and the promotion of safe and responsible AI development, the company confirmed.
"This new investment confirms our commitment for the sustainable growth of Italy by helping organizations harness the power of cloud and generative AI while providing Italians with the skills to maximize these technologies," said Vincenzo Esposito, general manager, Microsoft Italy.
"Our Italy North Region will continue in accelerating digital transformation and skills in Italy, ensuring that no one is left behind."
Over the last year, more than 320 companies have joined the company's AI LAB program initiative, creating more than 450 generative AI projects - of which half are already up and running.
"Thanks to the strategic collaboration with Microsoft and the use of the latest solutions, we have strengthened trust and drive to innovation, both for a general transformations and digital transformation in particular within our academic community," commented Angelo Saccà, director of the Information Systems Portal, E-Learning Department of the University of Turin.
