Italy Data Center Market - Investment Analysis & Growth Opportunities 2024-2029

MARKET INSIGHTS

The Italy data center market will witness investments of USD 3.83 billion by 2029, growing at a CAGR of 3.98% during the forecast period. Milan solidifies its position as a significant data hub with 37 existing data centers and seven more in the pipeline, reflecting its growth trajectory and strategic importance in the Italy data center market. Furthermore, Aruba, CloudHQ, and Compass Data Centers are poised for substantial expansion initiatives. Aruba's IT4 data center is expected to be operational by Q2 2024, representing a significant investment of USD 320 million over five years.

Italy's rapid digitalization and thriving ICT market attract investments from global giants like STACK Infrastructure and Compass Data Centers, driving growth in the data center industry. Also, the launch of the Italian Datacenter Association (IDA) fosters industry-wide cooperation and standards, providing a platform for monitoring and driving the colocation landscape. Further, Italy's commitment to economic development is demonstrated through initiatives like Free Trade Zones and Special Economic Zones, which attract investments and drive the growth of the Italy data center market.

AWS and Microsoft have made significant investments in Italy's cloud market, fueling the demand for data center services and driving further growth in the Italy data center market. Furthermore, data center operators like Microsoft commit to powering their operations using renewable energy sources, contributing to sustainability goals and environmental conservation efforts.

KEY HIGHLIGHTS

• The cloud market in Italy is witnessing significant growth, attracting investments from international hyper scalers such as Google and Microsoft. Milan's strategic geographic location has made it a central point for connectivity, and the ongoing and planned expansion initiatives of the global colocation data center operators further underscore the city's prominence.
• Leveraging a strategic global connectivity framework facilitated by a network of submarine cables, the nation strengthens digital connectivity, solidifying its role as a prominent data hub. Italy has 28 operational submarine cables, with five more in the pipeline.
• Italy aims for climate neutrality by 2050 and invests in renewable energy. The European Investment Bank loaned Asja Ambiente Italia in February 2023 to finance renewable energy projects, aligning with Italy's environmental goals.
• Italy is witnessing substantial investments in AI, with over 470 AI-based startups. Italy's Strategic Program for Artificial Intelligence includes a USD 164 million fund to support AI startups, fostering innovation and economic growth.
• Italy is experiencing growth in IoT adoption, leading to growth in the Italy data center market. Rai Way's Edge project, launched in April 2023, involves establishing 18 edge data centers across Italy, catering to IoT and edge computing needs.
• Italy has high 5G coverage, with operators covering around 98.9%-99.7% of the population. TIM's completion of tenders for 5G backhauling in January 2023 reflects efforts to advance Italy's digitalization and expand broadband infrastructure.

WHY SHOULD YOU BUY THIS RESEARCH?

• Market size is available in terms of investment, area, power capacity, and Italy colocation market revenue.
• An assessment of the data center investment in Italy by colocation and enterprise operators.
• Investments in the area (square feet) and power capacity (MW) across cities in the country.
• A detailed study of the existing Italy data center market landscape, an in-depth market analysis, and insightful predictions about market size during the forecast period.
• Snapshot of existing and upcoming third-party data center facilities in Italy
  • Facilities Covered (Existing): 62
  • Facilities Identified (Upcoming): 10
  • Coverage: 16+ Locations
  • Existing vs. Upcoming (Area)
  • Existing vs. Upcoming (IT Load Capacity)
• Data Center Colocation Market in Italy
  • Market Revenue & Forecast (2023-2029)
  • Retail & Wholesale Colocation Pricing
• The Italy data center market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
• A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
• Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the market.
• A transparent research methodology and the analysis of the demand and supply aspects of the market.

VENDOR LANDSCAPE

• Some key investors in the Italy data center market include Aruba, DATA4, Equinix, Telecom Italia, IRIDEOS, and STACK Infrastructure.
• The Italy data center market also witnessed the entry of colocation operators such as Compass Datacenters and Vantage Data Centers.
• The construction contractors in the country have both a global and local presence, which supplies major operators in the market, for instance, AECOM, Ariatta, DBA PRO, Future-tech, Eiffage, EDITEL, ISG, and NORMA Engineering, among others.
• There is a slight fluctuation and variation in construction costs due to land-related activities.

EXISTING VS. UPCOMING DATA CENTERS

• Existing Facilities in the Region (Area and Power Capacity)
  • Milan
  • Other Cities
• List of Upcoming Facilities in the Region (Area and Power Capacity)

REPORT COVERAGE:

This report analyses the Italy data center market share. It elaboratively analyses the existing and upcoming facilities and investments in IT, electrical, mechanical infrastructure, general construction, and tier standards. It discusses market sizing and investment estimation for different segments. The segmentation includes:

• IT Infrastructure
  • Servers
  • Storage Systems
  • Network Infrastructure
• Electrical Infrastructure
  • UPS Systems
  • Generators
  • Transfer Switches & Switchgears
  • PDUs
  • Other Electrical Infrastructure
• Mechanical Infrastructure
  • Cooling Systems
  • Rack Cabinets
  • Other Mechanical Infrastructure
• Cooling Systems
  • CRAC & CRAH Units
  • Chiller Units
  • Cooling Towers, Condensers & Dry Coolers
  • Economizers & Evaporative Coolers
  • Other Cooling Units
• General Construction
  • Core & Shell Development
  • Installation & Commissioning Services
  • Engineering & Building Design
  • Fire Detection & Suppression Systems
  • Physical Security
  • Data Center Infrastructure Management (DCIM)
• Tier Standard
  • Tier I & Tier II
  • Tier III
  • Tier IV
• Geography
  • Milan
  • Other Cities

VENDOR LANDSCAPE

• IT Infrastructure Providers: Atos, Cisco Systems, Dell Technologies, Hewlett Packard Enterprises, Huawei Technologies, IBM, Lenovo, NetApp, Nutanix, Oracle, Pure Storage.
• Data Center Construction Contractors & Sub-Contractors: AECOM, Ariatta, DBA PRO, Future-tech, Eiffage, EDITEL, ISG, NORMA Engineering.
• Support Infrastructure Providers: ABB, Alfa Laval, Caterpillar, Climaveneta Climate Technologies, Cummins, Emicon, Eaton, Legrand, HiRef, Honeywell, Piller Power Systems, Munters, Pramac, Rittal, The R&S Group, Schneider Electric, Siemens, Socomec, STULZ, Trane and Vertiv.
• Data Center Investors: Aruba, DATA4, Equinix, Telecom Italia, IRIDEOS, STACK Infrastructure.
• New Entrants: Compass Datacenters, Vantage Data Centers.

TARGET AUDIENCE

• Real Estate Investment Trusts (REIT)
• Construction Contractors
• Infrastructure Providers
• New Entrants
• Consultants/Consultancies/Advisory Firms
• Corporate and Government Agencies