Italy is poised to experience significant investments in data center construction and deployment, with projections reaching up to 10.5 billion euros by 2028 due to the burgeoning growth of artificial intelligence (AI) technologies. This growth is expected to generate roughly 100,000 jobs, indicating the dual impact of AI on employment and infrastructure development.
According to the latest data, the Italian data center sector has already seen unprecedented growth, with 23 organizations, including eight new entrants, announcing plans to establish 83 new infrastructures between 2023 and 2025. This influx could funnel approximately 15 billion euros of investment across the region.
Three primary conditions are identified for Italy to fully leverage this opportunity. Firstly, there is an urgent need for regulatory simplification to streamline the permitting processes. Uniform national regulations are deemed necessary for fostering conducive environments for investment. Secondly, the emphasis must be placed on sustainability and energy access as integral components of developing digital infrastructures. Finally, the advancement of skilled workforce is pivotal to meet market demands and attract youth to the tech sector.
Environmental sustainability remains at the forefront of industry discussions, underscored by the establishment of the Sustainability Committee within the Italian Data Center Association (IDA). The incorporation of Environmental, Social, and Governance (ESG) criteria indicates the industry's commitment to mitigate climate change impacts.
With the surge in data center capacity expected to compound annually at 29%, reaching almost one gigawatt (GW) of IT load by 2028, the significance of energy efficiency becomes increasingly evident. The pressing energy demands from AI could drive this consumption up to 3-4% of the global energy supply by 2030, according to latest analyses. Currently, data centers consume around 220-320 terawatt hours (TWh) annually, equaling approximately 1% of the world’s total electricity consumption.
Italy's strategic positioning within the European Green Deal aims for carbon neutrality by 2050, with targeted reductions of carbon emissions by 2030. This policy outlines the necessity for utilizing energy-efficient and renewable sources to power the burgeoning data centers.
The burgeoning demand for digital services is also underscored by the rapid digitalization trends across businesses, augmenting the need for operating data centers capable of meeting increasing computing needs. Energy consumption management and sustainable practices will be imperative to support this growth.
Workforce implications are notable, as around 28,000 jobs have been directly created by data centers, with projections showing the trend will continue. Currently, full-time employees account for approximately 8,000 positions directly related to data center operations, sales, marketing, security, and administration. This direct workforce is anticipated to evolve with shifts toward cloud and co-location services, as on-premise positions decrease.
Industry experts project significant employment growth through both direct and indirect channels, creating numerous additional jobs within associated service sectors like transportation, hospitality, and the broader supply chain.
The challenges facing the industry include ensuring sufficient energy availability, particularly as networks are increasingly overloaded with demand. Indeed, the operational efficiency of existing energy systems is expected to come under pressure as data centers transition to higher-density infrastructures, particularly as AI capabilities continue to proliferate.
Among anticipated developments, advancements will focus not only on energy procurement but also on enhancing infrastructure resilience, as data centers work to implement cutting-edge cooling systems and high-density power solutions. The consideration of integrating liquid cooling systems alongside energy-efficient uninterruptible power supplies are examples of how the industry is adapting to changing demands.
Another salient consideration pertained to cybersecurity measures introduced as AI and technology evolve. Cyber threats have transformed significantly, and experts note the heightened risk from ransomware and AI-fueled hacking attempts. This necessitates new strategies and advanced technologies from data center operators to safeguard sensitive information.
Alongside regulatory expectations, governments are increasing scrutiny on AI use and energy consumption, reflecting growing intentions to govern and potentially restrict data center activities based on energy consumption profiles and broader environmental impacts.
Overall, there’s considerable momentum as stakeholders prioritize energy-efficient policies and sustainable practices. The interplay between AI growth, energy consumption, and investment positions Italy as both a leader and competitive force within the global data center market.