Italy Data Center Construction Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Italy Data Center Construction Market Report Segments the Industry Into Tier Type (Tier 1 and 2, Tier 3, Tier 4), Data Center Type (Colocation, Self-Build Hyperscalers (CSPs), Enterprise and Edge), Infrastructure (Electrical Infrastructure, Mechanical Infrastructure, General Construction, and More). The Market Forecasts are Provided in Terms of Value (USD).

Italy Data Center Construction Market Size and Share

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Italy Data Center Construction Market Analysis by Mordor Intelligence

The Italy data center construction market is valued at USD 3.82 billion in 2025 and is on track to reach USD 7.67 billion by 2030, reflecting a 14.82% CAGR. Steady capital inflows from hyperscalers, strong government backing, and Italy’s geographic role as a Mediterranean connectivity node form the foundation of this rapid scale-up. Power connection requests have already eclipsed installed grid capacity, yet sustained investment plans by Terna and a wave of new submarine cable landings keep investor sentiment positive. Microsoft, AWS, Google Cloud, and Oracle continue to anchor fresh builds, while domestic operators such as TIM and Aruba blend local expertise with global best practice to accelerate delivery. Rising sustainability mandates, 5G rollout, and the build-to-lease approach embraced by hyperscalers collectively shape the next phase of the Italy data center construction market.

Key Report Takeaways

  • By tier type, Tier 3 led with a 54.3% share of the Italy data center construction market in 2024, while Tier 4 facilities are expanding at a 17.8% CAGR through 2030. 
  • By data center type, colocation services held a 56.4% share of the Italy data center construction market size in 2024; self-build hyperscaler sites are growing 19.4% annually to 2030. 
  • By electrical infrastructure, power backup solutions accounted for 53.2% of the Italy data center construction market size in 2024, whereas power distribution solutions post the fastest 18.9% CAGR. 
  • By mechanical infrastructure, cooling systems captured 48.2% share of the Italy data center construction market size in 2024 and remain essential as servers and storage rise at a 16.4% CAGR. 
  • Regionally, Northern Italy commanded 62% of 2024 revenue; Sicily is forecast to post the highest 21.3% CAGR on the back of fresh cable landings.

Segment Analysis

By Tier Type: Tier 4 Drives Premium Reliability

Tier 3 facilities controlled 54.3% of the Italy data center construction market share in 2024 as enterprises sought balanced uptime and cost. Nevertheless Tier 4 sites, required by finance, government, and AI workloads, expand 17.8% each year to 2030. This segment commands higher CAPEX due to dual power paths, concurrent maintainability, and seismic hardening. Vertiv’s CoolLoop Trim Cooler, compliant with impending EU F-GAS rules, cuts cooling energy 70%, making it attractive to Tier 4 builders seeking compliance and savings. Aruba’s IT4 in Rome exemplifies this trend with five duplicate buildings, 30 MW IT load, and renewable power.

Growth momentum also ripples down to Tier 1 and Tier 2 for edge or cost-sensitive projects. Yet as business continuity rises on boardroom agendas, these lower tiers are yielding share to fault-tolerant designs. The Italy data center construction market therefore shows a clear shift toward premium reliability, with operators positioning modular Tier 4 capacity along seismic lines to minimize disruption risk.

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Note: Segment shares of all individual segments available upon report purchase

By Data Center Type: Hyperscalers Reshape Construction Patterns

Despite colocation’s 56.4% 2024 base, self-build hyperscaler projects rise 19.4% per year. Microsoft’s EUR 4.3 billion investment in Northern Italy, paired with AI-ready architecture, typifies this pivot. Google Cloud blends self-build and outsource by leasing space from TIM in Milan and Turin, illustrating hybrid forms that optimize speed and compliance. This wave enlarges the Italy data center construction market size for hyperscale to an estimated USD 2.1 billion by 2030, equal to 27% of total value.

Edge and enterprise builds grow moderately but still anchor regional diversification. The build-to-lease model lowers capital-heavy lifting for hyperscalers: Oracle’s Turin region runs inside a TIM campus, meeting uptime and sovereignty goals without direct land ownership. Pension and infrastructure funds are eager landlords, turning predictable 20-year hyperscale leases into bond-like returns, and thereby injecting new capital into the Italy data center construction industry.

By Infrastructure, Electrical Type: Power Distribution Innovation Accelerates

Power backup systems own 53.2% of spending today, a testament to uninterruptible uptime needs. Still, power distribution gear posts the quickest 18.9% CAGR as racks climb from 5-10 kW to 40-50 kW. The Italy data center construction market size for distribution is set to double by 2030, propelled by AI clusters like iGenius’s southern campus featuring 80 Nvidia servers. Terna’s smart-grid upgrades dedicate EUR 3.4 billion to data-center-oriented substations, enabling real-time load management.

Advanced busways, solid-state transformers, and on-site battery energy storage now appear in RFPs as standard. Operators are also pre-wiring for future fuel-cell integration. These investments streamline commissioning timelines while satisfying KPIs set by the EU’s forthcoming sustainability scorecard.

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By Mechanical Infrastructure: Cooling Systems Face AI Challenge

Cooling ruled 48.2% of spend in 2024, but servers and storage—climbing 16.4% annually—now dictate mechanical design. Liquid immersion, rear-door heat exchangers, and heat-recovery loops shift facility layouts. Leonardo’s DaTEG system delivers 30% better chip performance at lower wattage, proving advanced thermal management’s ROI. The Italy data center construction market must also adapt cabinet structures for heavier liquid lines and denser gear while ensuring seismic integrity.

Operators capture new revenue by selling recovered heat to district utilities, as Retelit’s Avalon 3 does for 1,250 homes. Such innovations not only align with EU climate targets but also mitigate grid strain by offsetting regional heating demand.

Geography Analysis

Northern Italy remains the epicenter, with Lombardy and Piedmont accounting for roughly 62% of 2024 spend thanks to dense fibre routes, renewables access, and a seasoned supply chain. Milan hosts major campuses from Aruba, Data4, Microsoft, and AWS, while Turin gained momentum after Oracle and Google Cloud established sovereign cloud zones. This cluster effect accelerates lead-times but risks grid-capacity saturation, prompting operators to scout Central and Southern parcels.

Sicily’s Palermo, bolstered by Sparkle’s Sicily Hub and the 240 Tbps BlueMed cable, positions the island as a tri-continent gateway. Genoa adds a second landing point that slashes latency for North Africa and Middle East traffic, enlarging the Italy data center construction market potential along the Ligurian coast. Bologna’s “Data Valley,” centered on the Leonardo supercomputer, attracts HPC-heavy tenants and research consortia, diversifying demand beyond commercial cloud.

Southern regions leverage abundant solar and wind, lower land costs, and PNRR incentives. iGenius’s USD 1 billion project illustrates this pivot, integrating renewable power and AI supercomputing. Yet seismic engineering inflates CAPEX, triggering use of the Sismabonus tax break to recover up to 50% of reinforcement spend. Despite higher upfront outlays, operators value location diversity for disaster recovery and carbon-free energy procurement, broadening the Italy data center construction market footprint.

Competitive Landscape

Competition balances between legacy telcos (TIM, WindTre), pure-play providers (Aruba, Retelit), and hyperscalers with voracious capacity needs. TIM commands the largest domestic footprint through 16 data centers and cloud pacts with Google and Oracle. Aruba differentiates via 100% renewable portfolios, Rating 4 certifications, and heat-recovery pilots, drawing sustainability-focused tenants. Microsoft, AWS, and Google underpin the bulk of greenfield work, often through land-lease or powered-shell partnerships that de-risk local execution.

Private equity and infra funds are amplifying firepower: Bain Capital’s 80% stake in AQ Compute and InfraVia’s 50% purchase of Iliad’s OpCore unlock billions for expansion. Strategic moves include Phoenix Tower’s edge-ready mast acquisition, Vantage Data Centers’ EUR 1.4 billion EMEA allocation, and Terna’s escalated capex to safeguard grid resilience. The Italy data center construction market thus sees rising M&A pace, vendor consolidation, and heavier emphasis on ESG compliance as a competitive differentiator.

Italy Data Center Construction Industry Leaders

  1. AECOM

  2. Arup Group Limited

  3. DPR Construction, Inc.

  4. Schneider Electric SE

  5. Fortis Construction, Inc.

  6. *Disclaimer: Major Players sorted in no particular order
Italy Data Center Construction Market Concentration
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Recent Industry Developments

  • January 2025: iGenius confirmed its USD 1 billion southern Italy campus will go live by summer 2025 with 80 Nvidia servers running on renewables.
  • February 2025: Stantec won the EUR 3.2 billion design contract for Silicon Box’s semiconductor test facility in Northern Italy, underpinning AI and data center ecosystems.
  • March 2025: Terna lifted Q1 2025 grid capex by 16.4% to EUR 562.1 million, earmarking funds for high-capacity data center interconnects.
  • May 2025: CyrusOne unveiled plans for a 54 MW Milan site powered entirely by renewables and closed-loop cooling.
  • June 2025: Apto announced Italy’s largest campus in Lacchiarella near Milan, investing EUR 3 billion across 228,000 m².
  • December 2024: InfraVia closed on 50% of Iliad’s OpCore platform, forming a pan-European hyperscale venture.
  • October 2024: Bain Capital bought 80% of AQ Compute to finance sustainable colocation rollouts across Europe, with Italy high on the list.
  • August 2024: Retelit launched Italy’s first data-center heat-recovery scheme at Avalon 3, heating 1,250 homes and cutting 3,300 tons of CO₂ annually.

Table of Contents for Italy Data Center Construction Industry Report

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 5G rollout accelerating edge and core builds
    • 4.2.2 Surging cloud and hyperscale demand
    • 4.2.3 Government “Piano Nazionale di Ripresa e Resilienza (PNRR)” digital grants
    • 4.2.4 Rising sustainability mandates and green energy sourcing
    • 4.2.5 New subsea cable landings boosting Italy’s connectivity hub status
    • 4.2.6 Build-to-lease model favoured by hyperscalers to bypass permitting delays
  • 4.3 Market Restraints
    • 4.3.1 Grid-power scarcity and volatile energy prices
    • 4.3.2 Shortage of specialised data-center construction labour
    • 4.3.3 Seismic-zone engineering costs raising capex
    • 4.3.4 Limited reclaimed-water access for advanced cooling
  • 4.4 Value / Supply-Chain Analysis
  • 4.5 Regulatory Landscape
  • 4.6 Technological Outlook
  • 4.7 Porter’s Five Forces
    • 4.7.1 Threat of New Entrants
    • 4.7.2 Bargaining Power of Buyers
    • 4.7.3 Bargaining Power of Suppliers
    • 4.7.4 Threat of Substitutes
    • 4.7.5 Competitive Rivalry

5. KEY DATA CENTER STATISTICS

  • 5.1 Exhaustive Data Center Operators in Italy (in MW)
  • 5.2 List of Major Upcoming Data Center Projects in Italy (2025-2030)
  • 5.3 CAPEX and OPEX For Italy Data Center Construction
  • 5.4 Data Center Power Capacity Absorption In MW, Selected Cities, Italy, 2023 and 2024

6. ARTIFICIAL INTELLIGENCE (AI) INCLUSION IN DATA CENTER CONSTRUCTION IN ITALY

7. REGULATORY and COMPLIANCE FRAMEWORK

8. MARKET SIZE and GROWTH FORECASTS (VALUE)

  • 8.1 By Tier Type
    • 8.1.1 Tier 1 and 2
    • 8.1.2 Tier 3
    • 8.1.3 Tier 4
  • 8.2 By Data Center Type
    • 8.2.1 Colocation
    • 8.2.2 Self-build Hyperscalers (CSPs)
    • 8.2.3 Enterprise and Edge
  • 8.3 By Infrastructure
    • 8.3.1 By Electrical Infrastructure
    • 8.3.1.1 Power Distribution Solution
    • 8.3.1.2 Power Backup Solutions
    • 8.3.2 By Mechanical Infrastructure
    • 8.3.2.1 Cooling Systems
    • 8.3.2.2 Racks and Cabinets
    • 8.3.2.3 Servers and Storage
    • 8.3.2.4 Other Mechanical Infrastructure
    • 8.3.3 General Construction
    • 8.3.4 Service - Design and Consulting, Integration, Support and Maintenance

9. COMPETITIVE LANDSCAPE

  • 9.1 Market Concentration
  • 9.2 Strategic Moves
  • 9.3 Market Share Analysis
  • 9.4 Data Center Infrastructure Investment Based on Megawatt (MW) Capacity, 2024 vs 2030
  • 9.5 Data Center Construction Landscape (Key Vendors Listings)
  • 9.6 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, Recent Developments)
    • 9.6.1 AECOM S.r.l.
    • 9.6.2 Arup Group Limited
    • 9.6.3 DPR Construction, Inc.
    • 9.6.4 Schneider Electric SE
    • 9.6.5 Fortis Construction, Inc.
    • 9.6.6 IBM Italia S.p.A.
    • 9.6.7 Airedale International Air Conditioning Ltd.
    • 9.6.8 Legrand S.p.A.
    • 9.6.9 Datacentre UK Ltd.
    • 9.6.10 Castrol Limited
    • 9.6.11 Honeywell International Inc.
    • 9.6.12 Johnson Controls International plc
    • 9.6.13 Datadome Group S.r.l.
    • 9.6.14 STULZ GmbH
    • 9.6.15 Daikin Industries Ltd.
  • 9.7 List of Data Center Construction Companies

10. MARKET OPPORTUNITIES and FUTURE OUTLOOK

  • 10.1 White-space and Unmet-Need Assessment
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Italy Data Center Construction Market Report Scope

A data center is a physical room, building, or facility that holds IT infrastructure used to construct, run, and provide applications and services and store and manage the data connected with those applications and services. Under data center construction, we are tracking the capital expenditure that was incurred while building the existing data center facilities and also estimating the future capex based on upcoming data center facilities.

The Italy Data Center Construction Market is segmented by Tier Type (Tier 1 and 2, Tier 3, and Tier 4), by Data Center Size (Small, Medium, Large, Massive, and Mega), by Infrastructure (Cooling Infrastructure (Air-based Cooling, Liquid-based Cooling, Evaporative Cooling), Power Infrastructure (UPS Systems, Generators, Power Distribution Unit (PDU), Racks and Cabinets, Servers, Networking Equipment, Physical Security Infrastructure, Design and Consulting Services, and Other Infrastructure), and End User ( IT & Telecommunication, BFSI, Government, Healthcare, and Other End User). The market sizes and forecasts are provided in values of USD for all the above segments.

By Tier Type Tier 1 and 2
Tier 3
Tier 4
By Data Center Type Colocation
Self-build Hyperscalers (CSPs)
Enterprise and Edge
By Infrastructure By Electrical Infrastructure Power Distribution Solution
Power Backup Solutions
By Mechanical Infrastructure Cooling Systems
Racks and Cabinets
Servers and Storage
Other Mechanical Infrastructure
General Construction
Service - Design and Consulting, Integration, Support and Maintenance
By Tier Type
Tier 1 and 2
Tier 3
Tier 4
By Data Center Type
Colocation
Self-build Hyperscalers (CSPs)
Enterprise and Edge
By Infrastructure
By Electrical Infrastructure Power Distribution Solution
Power Backup Solutions
By Mechanical Infrastructure Cooling Systems
Racks and Cabinets
Servers and Storage
Other Mechanical Infrastructure
General Construction
Service - Design and Consulting, Integration, Support and Maintenance
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Key Questions Answered in the Report

What is the current Italy Data Center Construction Market size?

The Italy Data Center Construction Market is projected to register a CAGR of 14.82% during the forecast period (2025-2031)

Who are the key players in Italy Data Center Construction Market?

AECOM, Arup Group Limited, Legrand, Daikin Applied and STULZ are the major companies operating in the Italy Data Center Construction Market.

What years does this Italy Data Center Construction Market cover?

The report covers the Italy Data Center Construction Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Italy Data Center Construction Market size for years: 2025, 2026, 2027, 2028, 2029, 2030 and 2031.

Page last updated on: June 25, 2025

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