Microsoft has committed to investing €4.3 billion ($4.75bn) in expanding its cloud and artificial intelligence (AI) data center infrastructure in Italy.
According to the cloud giant, this is its largest investment in Italy to date.
The company will be expanding its data center in Northern Italy, and has also committed to training more than one million Italians in AI and digital skills by the end of 2025.
Following the expansion, Italy will become one of Microsoft's largest data center regions in Europe, and will also serve as a data hub for the Mediterranean and North Africa.
“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.”
“In less than a year, our cloud region has supported Italian and international companies achieve greater productivity and innovation,” added Vincenzo Esposito, general manager of Microsoft Italy. “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. Our Italy North region will continue in accelerating digital transformation and skills in Italy, ensuring that no one is left behind.”
The company stated that it is "deeply invested in advancing the sustainability of AI." Microsoft has thus far executed three PPAs for renewable energy in Italy and is "pursuing additional contractual opportunities in the near future." Details of the existing PPAs, including power source and scale, were not shared. Its data centers are also in the process of transitioning the backup generators to renewable biofuel to reduce carbon emissions.
Microsoft adds that its data centers in Italy use direct evaporative cooling systems to help reduce water use - in total for less than five percent of the year, and the majority of the water is harvested rainwater groundwater.
Microsoft's Italian cloud region is located in Milan. The company first announced plans for an Italian Azure region in Milan back in May 2020, with it launching in 2023.
The cloud region is likely located at Stack’s Milan facility (previously SuperNAP Italita), with the company saying on LinkedIn at the time of the launch: “We are delighted to support Microsoft in launching their first cloud region in Italy.”
It was the last of the US cloud hyperscalers to launch in Italy. AWS launched its Milan cloud region in 2020, with Oracle’s following in 2021, and Google’s in 2022 (a second Italian GCP region has since launched in Turin).
