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

The Italy Data Center Networking Market Report Segments the Industry Into Components (By Product, by Services), End-Users (IT & Telecommunication, BFSI, and More), Data-Center Type(Colocation, Hyperscalers/Cloud Service Providers, and More), and Bandwidth( ≤10 GbE, 25–40 GbE, and More). The Market Forecasts are Provided in Terms of Value (USD).

Italy Data Center Networking Market Size and Share

Italy Data Center Networking Market Summary
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Italy Data Center Networking Market Analysis by Mordor Intelligence

The Italy Data Center Networking Market size is estimated at USD 545.20 million in 2025, and is expected to reach USD 870.40 million by 2030, at a CAGR of 9.81% during the forecast period (2025-2030).

The Italy data center networking market stands at USD 545.2 million in 2025 and is projected to reach USD 870.4 million by 2030, advancing at a 9.81% CAGR. The Italy data center networking market benefits from the country’s role as a digital bridge linking Europe with the Middle East and Africa, a position reinforced by the EUR 194.4 billion National Recovery and Resilience Plan, which channels 25.6% of spending into digital objectives. Investments in large-scale cloud regions by Microsoft, AWS and Google, combined with submarine-cable landings along the Tyrrhenian coast, accelerate demand for hyperscale fabrics and high-capacity optical backbones. At the same time, the number of Italian data-center interconnections has expanded 40-fold since 2021, underscoring a structural shift toward low-latency, cloud-first workflows. Edge facilities in industrial districts, PNRR-funded public-sector digitalization, and a national cybersecurity strategy that mandates segmented, monitored networks further propel the Italy data center networking market. Competitive dynamics remain moderate as entrenched vendors protect share while open-networking specialists challenge proprietary stacks.

Key Report Takeaways

  • By component, products led with 72.2% of the Italy data center networking market share in 2024, whereas services are forecast to expand at 12.2% CAGR to 2030.
  • By end-user, IT & Telecommunications held 32.3% revenue share in 2024, while healthcare and life sciences advance at a 13.40% CAGR through 2030.
  • By data-center type, colocation facilities accounted for 47.2% of the Italy data center networking market size in 2024, yet hyperscalers/cloud service providers record the highest projected CAGR at 14.5% to 2030.
  • By bandwidth, the 50–100 GbE segment captured 36.4% share of the Italy data center networking market size in 2024; >100 GbE is growing fastest at 14.3% CAGR on rising AI workloads

Segment Analysis

By Component: Products Lead While Services Accelerate

Products account for 72.2% of 2024 spending, anchored by Ethernet switches, routers and next-generation firewalls that form the physical backbone of Italy’s colocation and cloud campuses. The Italy data center networking market size for switching hardware alone approaches USD 300 million in 2025, buoyed by hyperscaler demand for 100 G ToR platforms and by the roll-out of compact 1 U edge switches with redundant AC/DC feeds. Security appliances also expand as the ACN mandates inline inspection at every demarcation point.

Services, though smaller, are growing at 12.2% CAGR because the talent shortage compels operators to outsource design, deployment, and 24×7 NOC management. Managed SD-WAN, NaaS and lifecycle-optimization contracts bundle consulting, staff augmentation and AI-driven monitoring. Colocation tenants increasingly request white-glove cross-connect provisioning and micro-segmentation audits, elevating services revenue faster than hardware in the Italy data center networking market.

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By End-User: Healthcare Disrupts IT Dominance

IT & Telecommunications held 32.3% share of the Italy data center networking market size in 2024, supported by carrier core upgrades and 5G backhaul densification. Nevertheless, healthcare and life sciences will outpace every other vertical at 13.40% CAGR through 2030, propelled by telemedicine, PACS image archiving and medical IoT gateways that demand deterministic, low-latency interconnects. GenAI-driven diagnostic tools push traffic toward GPU clusters, further lifting switch port counts.

Banks and insurers sustain mid-single-digit growth as PSD2 and DORA rules compel transaction-level logging and active-active DR topologies. Manufacturing follows closely, integrating TSN-enabled robots with 25 G industrial Ethernet and deploying fog nodes inside plants. Each vertical’s security obligations converge on zero-trust network access, helping the Italy data center networking industry embed deep-packet inspection and continuous-assurance frameworks across multiple customer segments.

By Data-Center Type: Hyperscalers Challenge Colocation Leadership

Colocation operators commanded 47.2% of revenue in 2024, leveraging carrier-neutral meet-me rooms and economies of scale in power procurement. Several have pre-sold entire halls to cloud service providers looking for quick market entry. Yet hyperscalers will log a 14.5% CAGR, shifting the Italy data center networking market share landscape as sovereign cloud regions come online. Their preference for spine-leaves running SONiC and 400 G ZR+ optics reshapes vendor scorecards.

Edge and micro facilities multiply near logistics hubs and university cities, bringing single-rack PODs with integrated liquid-cooling manifolds. This topology forces orchestration platforms to manage thousands of miniature LANs while maintaining deterministic latency ceilings. Vendors that bundle asset discovery, fabric automation and energy analytics are gaining traction with operators that lack on-site staff and require remote remedial controls.

Italy Data Center Networking Market: Market Share by Data-Center Type
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Note: Segment shares of all individual segments available upon report purchase

By Bandwidth: Greater than 100 GbE Gains Momentum

The 50–100 GbE tier remains the workhorse, yet >100 GbE will post the fastest gains at 14.3% CAGR as AI inferencing pipelines and HPC clusters overwhelm older backbones. Fastweb’s NeXXt AI Factory, featuring an NVIDIA DGX SuperPOD, links each node with 400 G interfaces, underscoring the pace of bandwidth inflation ilsole24ore.com. National research networks such as GARR are already testing 800 G wavelengths, demonstrating that optical plant is scaling in lockstep garr.it.[3]GARR Network, “Terabit upgrades for Italian research,” garr.it

The ≤10 GbE cohort lingers inside edge enclosures, SMB server rooms and brownfield metro PoPs where budget constraints or legacy copper still dominate. Meanwhile, 25–40 GbE continues serving mid-tier aggregation layers but will peak before 2027 as operators leapfrog directly to 100 G optics once price parity approaches. Optics vendors that can supply QSFP112 and QSFP-DD modules in volume without supply-chain hiccups stand to capture disproportionate wallet share in the Italy data center networking market.

Geography Analysis

Northern Italy, led by Lombardy and its capital Milan, hosts roughly 26% of national data-center white-space and remains the nexus for cross-border backbones entering via Marseille and Barcelona. Milan’s data-center density fuels local peering, drawing hyperscalers that prefer proximity to IXPs and fintech clusters. Rome follows as a sovereign cloud locus, serving ministries and defense-grade tenants; its metro area benefits from PNRR grants that underwrite dark-fiber extensions to government campuses.

Central regions such as Tuscany and Emilia-Romagna are cultivating sustainable campuses tapping geothermal and hydro-electric reservoirs. A geothermal-powered facility in Larderello exemplifies how green energy profiles differentiate site selection in the Italy data center networking market. GenAI research consortia linked to the Istituto Nazionale di Fisica Nucleare and regional universities further require multi-terabit research-and-education backbones.

The South remains less banked and less industrialized, yet PNRR allocations prioritize bridging the digital divide by 2026. FTTH deployments in Puglia and Campania, as well as submarine cable landings in Sicily, improve latency toward North-African and Middle-Eastern markets. Nine Italian metropolitan areas—from Bari to Trieste—were selected for the EU’s 100 climate-neutral cities program, spurring edge facilities that support smart-mobility platforms, surveillance networks and real-time environmental sensors. Each rollout extends the Italy data center networking market into provinces previously underserved by carrier-grade infrastructure.

Competitive Landscape

The Italy data center networking market balances traditional full-stack vendors against open-networking challengers. Cisco, Dell Technologies, and Hewlett-Packard Enterprise protect incumbent turf by bundling hardware, software, and lifecycle services; Cisco alone staffs more than 600 people locally and operates a Milan co-innovation hub focused on quantum-secure networking. Dell leverages its SONiC distribution to court cloud builders seeking white-box flexibility, while HPE’s 2025 acquisition of Juniper Networks positions the merged entity as a credible AI-fabric alternative to Cisco.

Juniper’s intent-based Apstra platform appeals to multivendor colocation operators needing uniform telemetry across Arista, Cisco and Broadcom-based boxes. Extreme Networks differentiates through a cloud-managed fabric that integrates Wi-Fi, switching and analytics, reporting USD 1.1 billion in FY 2024 revenue and ranking second worldwide in cloud networking ARR. Smaller Italian integrators such as Unidata emphasize Network-as-a-Service and IoT wholesale, aiming for double-digit growth by offloading capex from digitally underserved SMEs.

Open-source adoption tempers incumbent pricing power. ODM suppliers from Taiwan ship bare-metal boxes that run SONiC, Cumulus or in-house NOS images, shrinking procurement cycles. Simultaneously, ASIC shortages and tariff pressures push operators to multi-sourcing, amplifying demand for optical-component vendors capable of second-source guarantees. Cyberattack volumes that surged 65% in 2024 keep next-gen firewall and zero-trust gateway vendors relevant in every RFP, reinforcing a balanced yet intensely contested Italy data center networking market.

Italy Data Center Networking Industry Leaders

  1. Cisco Systems Inc.

  2. Juniper Networks Inc.

  3. Arista Networks Inc.

  4. Hewlett Packard Enterprise Company

  5. Dell Technologies Inc.

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

  • March 2025: Unidata posted 9% FY 2024 revenue growth to EUR 101.3 million and outlined a 12% CAGR plan through 2027, hinging on NaaS and IoT adoption
  • January 2025: HPE finalized its USD 14 billion acquisition of Juniper Networks, combining Aruba, GreenLake and Mist AI portfolios
  • November 2024: Telecom Italia accepted an EUR 18.8 billion bid for its NetCo fixed-line division, separating service and infrastructure arms
  • October 2024: Italy’s National Cybersecurity Agency hosted Cybertech Europe 2024, spotlighting secure-by-design mandates for cloud infrastructure
  • August 2024: Extreme Networks declared USD 1.1 billion FY 2024 sales, achieving 29% growth in SaaS recurring revenue

Table of Contents for Italy Data Center Networking Industry Report

1. INTRODUCTION

  • 1.1 Study Assumptions & 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 Increasing utilization of cloud storage & hyperscale build-outs
    • 4.2.2 Rising need for data backup & GDPR-driven retention
    • 4.2.3 Edge computing & IoT traffic explosion
    • 4.2.4 Open networking (white-box, SONiC) adoption
    • 4.2.5 PNRR funding for public-sector digital infra
    • 4.2.6 Liquid-cooling-ready high-bandwidth fabrics
  • 4.3 Market Restraints
    • 4.3.1 Shortage of skilled networking professionals
    • 4.3.2 High capex for 100G/400G migration
    • 4.3.3 Energy-price volatility impacting TCO
    • 4.3.4 ASIC supply-chain disruptions
  • 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 Intensity of Competitive Rivalry
  • 4.8 Assessment of the Impact on Macro Economic Trends on the Market

5. MARKET SIZE and GROWTH FORECASTS (VALUE)

  • 5.1 By Component
    • 5.1.1 Products
    • 5.1.1.1 Ethernet Switches
    • 5.1.1.2 Routers
    • 5.1.1.3 Storage Area Network (SAN)
    • 5.1.1.4 Application Delivery Controllers (ADC)
    • 5.1.1.5 Network Security Appliances
    • 5.1.1.6 Software-Defined Networking (SDN) Controllers
    • 5.1.1.7 Optical Interconnects
    • 5.1.2 Services
    • 5.1.2.1 Installation and Integration
    • 5.1.2.2 Training and Consulting
    • 5.1.2.3 Support and Maintenance
    • 5.1.2.4 Managed Network Services
  • 5.2 By End-User
    • 5.2.1 IT and Telecommunications
    • 5.2.2 Banking, Financial Services and Insurance (BFSI)
    • 5.2.3 Government and Defense
    • 5.2.4 Media and Entertainment
    • 5.2.5 Healthcare and Life Sciences
    • 5.2.6 Manufacturing and Industrial
    • 5.2.7 Other End-Users
  • 5.3 By Data-Center Type
    • 5.3.1 Colocation
    • 5.3.2 Hyperscalers/Cloud Service Providers
    • 5.3.3 Edge/Micro Data Centers
  • 5.4 By Bandwidth
    • 5.4.1 Less Than equals to 10 GbE
    • 5.4.2 25–40 GbE
    • 5.4.3 50–100 GbE
    • 5.4.4 Greater than 100 GbE

6. Competitive Landscape

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products & Services, and Recent Developments)
    • 6.4.1 Cisco Systems Inc.
    • 6.4.2 Dell Technologies Inc.
    • 6.4.3 NEC Corporation
    • 6.4.4 International Business Machines Corporation (IBM)
    • 6.4.5 Hewlett Packard Enterprise Company (HPE)
    • 6.4.6 Schneider Electric SE
    • 6.4.7 ALE International SAS (Alcatel-Lucent Enterprise)
    • 6.4.8 Microsoft Corporation
    • 6.4.9 Fujitsu Limited
    • 6.4.10 Oracle Corporation
    • 6.4.11 Arista Networks Inc.
    • 6.4.12 Juniper Networks Inc.
    • 6.4.13 Huawei Technologies Co., Ltd.
    • 6.4.14 Broadcom Inc.
    • 6.4.15 NVIDIA Corporation (Mellanox)
    • 6.4.16 Extreme Networks Inc.
    • 6.4.17 Ciena Corporation
    • 6.4.18 CommScope Holding Company Inc.
    • 6.4.19 Fortinet Inc.
    • 6.4.20 NetApp Inc.
    • 6.4.21 VMware Inc.
    • 6.4.22 Nokia Corporation (Nuage Networks)
    • 6.4.23 Super Micro Computer, Inc.

7. Market Opportunities & Future Outlook

  • 7.1 White-space & Unmet-Need Assessment
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Italy Data Center Networking Market Report Scope

Data center networking refers to the set of technologies, protocols, and hardware used to connect physical and network-based devices and manage the network infrastructure, storage, and processing of application and data. Data center networking is very critical for 100% uptime of data centers. In the current web-connected world, business workloads are executed on single computers, hence leading to the need for data center networking. Networks provide servers, clients, applications, and middleware with a standard plan to stage the execution of workloads and also to manage access to the data produced.

The Italy data center networking market is segmented by component type, including product (ethernet switches, router, storage area network (SAN), application delivery controller (ADC), and other networking equipment) and services (installation & integration, training & consulting, and support & maintenance). It caters to various end-users such as IT & telecommunications, BFSI, government, media & entertainment, and other end-users.

The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

By Component Products Ethernet Switches
Routers
Storage Area Network (SAN)
Application Delivery Controllers (ADC)
Network Security Appliances
Software-Defined Networking (SDN) Controllers
Optical Interconnects
Services Installation and Integration
Training and Consulting
Support and Maintenance
Managed Network Services
By End-User IT and Telecommunications
Banking, Financial Services and Insurance (BFSI)
Government and Defense
Media and Entertainment
Healthcare and Life Sciences
Manufacturing and Industrial
Other End-Users
By Data-Center Type Colocation
Hyperscalers/Cloud Service Providers
Edge/Micro Data Centers
By Bandwidth Less Than equals to 10 GbE
25–40 GbE
50–100 GbE
Greater than 100 GbE
By Component
Products Ethernet Switches
Routers
Storage Area Network (SAN)
Application Delivery Controllers (ADC)
Network Security Appliances
Software-Defined Networking (SDN) Controllers
Optical Interconnects
Services Installation and Integration
Training and Consulting
Support and Maintenance
Managed Network Services
By End-User
IT and Telecommunications
Banking, Financial Services and Insurance (BFSI)
Government and Defense
Media and Entertainment
Healthcare and Life Sciences
Manufacturing and Industrial
Other End-Users
By Data-Center Type
Colocation
Hyperscalers/Cloud Service Providers
Edge/Micro Data Centers
By Bandwidth
Less Than equals to 10 GbE
25–40 GbE
50–100 GbE
Greater than 100 GbE
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Key Questions Answered in the Report

What is the current size of the Italy data center networking market?

The market is valued at USD 545.2 million in 2025 and is forecast to reach USD 870.4 million by 2030, reflecting a 9.81% CAGR.

Which component segment is growing fastest?

Services, including design, integration and managed NOC contracts, are projected to rise at 12.2% CAGR through 2030 as enterprises outsource scarce networking expertise.

Why is healthcare the fastest-expanding end-user vertical?

Telemedicine, PACS imaging and medical IoT projects funded under Italy’s National Recovery Plan require low-latency, high-bandwidth connections, driving a 13.40% CAGR for healthcare and life sciences.

How will >100 GbE adoption progress?

Bandwidths above 100 GbE are expected to grow at 14.3% CAGR, fueled by AI clusters such as Fastweb’s DGX SuperPOD and research networks upgrading to 400 G/800 G optics.

What regions within Italy attract the most data-center investment?

Lombardy (Milan), Lazio (Rome) and emerging green-energy zones in Tuscany are the front-runners, while Southern provinces gain momentum through PNRR-backed digital-divide programs.

Which factors could restrain market growth?

A persistent skills shortage, high capex for 400 G rollouts and energy-price volatility could shave more than 3% off compound growth if unaddressed.

Italy Data Center Networking Market Report Snapshots