Italy Data Center Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

The Italy data center market size reached around USD 7.10 Billion in 2024. The market is projected to grow at a CAGR of 6.10% between 2025 and 2034 to reach nearly USD 12.84 Billion by 2034.

Italy Data Center Market Growth

Between 2022 and 2024, the Italy cloud industry has grown by nearly 19% to reach a value of over EUR 5.5 billion. The growth of service and infrastructure services in Italy has attracted the attention of major cloud providers. The demand for infrastructure services has risen by 29% from 2022 domestically and has reached a value of over EUR 1.51 billion. As cloud service providers begin designing their offerings in line with Europe’s GDPR and businesses based in the Mediterranean seek to establish a transcontinental presence, the cloud computing industry is expected to witness significant growth. This is expected to contribute to the Italy data center market development over the forecast period.

In the Digital Economy and Society Index 2022, Italy was ranked at 18 th position among 27 countries in the European Union. Almost 60% of all Italian SMEs (small and medium enterprises) rely on digital technologies for business growth. Nearly 40% of all internet users in Italy utilise digital public services, whose adoption recorded a growth of 10% during 2020-2022. The Italian government is investing EUR 600 million in a scheme to enable small and medium enterprises to access broadband internet services with a bandwidth of 30Mbps-1Gbps. Increasing government initiatives towards economic digitalisation are expected to favourably shape the Italy data center market dynamics over the forecast period.

Key Trends and Developments

Strategic location of Italy, rapid digital transformation; growing focus on sustainability; and technological advancements are factors fuelling Italy data center market expansion.

May 2024

Oracle announced a collaboration with TIM to support the rising demand for cloud services from private and public organisations in Italy. Under the collaboration, TIM aims to host Oracle’s second planned cloud region in Italy through its advanced and reliable data center located in Turin.

April 2024

Data4 announced its plans to create a new campus in Milan, Mil02, and build eight data centers to expand its reach in the Italian market. Expected to be completed by 2027, the new campus aims to meet the rising demand for digital services and facilitate digital transformation. This is expected to drive the Italy data center market growth over the forecast period.

June 2023

Microsoft announced the launch of its first cloud region in Italy, consisting of three data centers located in the Lombardy region, to provide Italian organisations access to resilient, available, and scalable cloud services and promote digital transformation.

January 2023

Equinix, STACK Infrastructure, CBRE Data Centers, Microsoft, Rai Way, Digital Reality, Data4, and Vantage Data Centers launched the Italian Data Center Association, addressing sustainability and regional growth of the Italian data centers. This is expected to foster Italy data center market development.

Strategic Location of Italy

The strategic location of Italy and its proximity to both the Mediterranean and Europe have made it attractive for European cloud providers to set up data centers in the country and provide services to North Africa and the Middle East, offering faster connectivity and lower latency.

Rapid Digital Transformation in Italy

The rapid digital transformation in Italy, fuelled by technological advancements, is surging the demand for data centers to provide optimal and scalable infrastructure solutions and house powerful processing and computing resources for managing, storing, and processing vast amounts of data. This is creating a favourably Italy data center market outlook.

Increasing Focus to Enhance the Sustainability of Data Centers

Key players are increasingly attempting to enhance the sustainability profile of data centers by optimising and reducing power, resource, and water consumption and utilising renewable energy sources such as wind and solar, among others.

Technological Advancements

Advancements in technologies such as artificial intelligence (AI), 5G, automation, and edge computing are revolutionising the data center market in Italy. AI, through predictive maintenance, can optimise the performance of data centers, 5G can facilitate faster data speeds, and edge computing can reduce the latency of data while facilitating swift processing speed.

Italy Data Center Market Trends

Italy boasts a strategic location in Europe, a favourable investor climate, high adoption rates of cloud computing, and a robust data infrastructure, positioning itself as an attractive location for housing data centers. The favourable socio-economic climate, thriving industrial ecosystem, and commitment to regulatory compliances further make Italy, especially Milan, attractive to both international and local cloud operators. This is expected to propel the Italy data center market growth.

Moreover, sustainability has become a cornerstone of data center operations, with the European Union launching initiatives such as the EU Energy Efficiency Directive (EED). This is prompting data center investors and stakeholders to invest in renewable energy sources, minimise environmental impact, deploy emission reduction methods, and maximise energy efficiency.

Italy Data Center Industry Segmentation

The EMR’s report titled “Italy Data Center Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Component:

• Solution
• Services

Market Breakup by Type:

• Cloud Data Center
• Colocation Data Center
• Edge Data Center
• Hyperscale Data Center
• Others

Market Breakup by Tier Type:

• Tier 1 and 2
• Tier 3
• Tier 4

Market Breakup by Design:

• Traditional
• Containerised
• Modular

Market Breakup by End Use:

• BFSI
• IT and Telecom
• Manufacturing and Automotive
• Government
• Healthcare
• Gaming and Entertainment
• Retail and E-Commerce
• Others

Market Breakup by Region:

• North-West Region
• North-East Region
• Central Region
• South Region

Italy Data Center Market Share

Based on region, the market is segmented into the North-West region, the North-East region, the Central region, and the South region. Over the forecast period of 2024-32, the North-West region is expected to grow at a CAGR of 6.9% because of rapid economic digitalisation of and the adoption of sustainable data center cooling solutions. Moreover, the increasing appeal for cloud infrastructure services in Europe is expected to contribute to the development of data centers in the region over the forecast period.

Leading Companies in the Italy Data Center Market

Major players like Amazon Web Services are investing billions for the expansion of its cloud offerings to businesses, thereby necessitating the growth of its existing data center facilities. This is expected to increase the Italy data center market value.

Equinix, Inc.

Equinix, Inc. was founded in 1998 and is headquartered in California, United States. It is engaged in providing multicloud networking solutions, security products, and data center colocation services, among others.

Vantage Data Centers Management Company, LLC

Vantage Data Centers Management Company, LLC was founded in 2010 and is headquartered in Colorado, United States. It is a wholesale data center developer that specialises in advanced mechanical and electrical designs and in the construction of green data centers.

Data4 Group

Data4 Group was founded in 2006 and is headquartered in Paris, Île-de-France. It is engaged in designing, constructing, and operating data centers. As per Italy data center market analysis, it owns a network of 22 data centers across Spain, Italy, France, Luxembourg, and Poland.

Aruba S.p.A.

Aruba S.p.A. was founded in 1994 and is headquartered in Ponte San Pietro, Italy. It is amongst Europe’s leading providers of data centers, cloud services, email services, and domain registration services. It is involved in managing a vast infrastructure distributed across 7 data centers.

Other players included in the Italy data center market report are AE Group S.à r.l., Retelit SpA, CDLAN SpA, ITnet srl, Seeweb Srl, and IT.Gate S.p.A., among others.