Due to the increasing demand for data processing and AI technologies, Milan’s data center capacity is expected to increase tenfold over the next five years, according to utility company A2A, which is benefiting from increased power demand from data centers and other AI-related industries.
Around 2 gigawatts (GW) of new capacity is expected to be added to data centers in the region, up from the 200 megawatts (MW) currently installed, said Renato Mazoncini, CEO of Italian energy group A2A (A2.MI).
Milan becomes a data center hub
Milan is on track to become one of Europe’s fastest growing cities data center hub. Its production capacity is expected to increase tenfold within the next five years.
With the rapid expansion of digital infrastructure, the demand for reliable electricity is rapidly increasing, creating new opportunities for companies like A2A, Italy’s third largest energy company by number of customers and the largest energy company in Lombardy.
“The rapid expansion of data centers required to drive artificial intelligence promises increased revenues for power companies like A2A that provide the necessary power,” Mazoncini said at an event in Milan on Friday.
All of Milan’s data centers currently use approximately 200 megawatts (MW) of electricity together, which is only a fraction of the city’s total peak electricity demand of 1.5 gigawatts (GW). expected Increased capacity The total power demand from the data center alone will approach the city’s existing peak power consumption.
Increasing demand for renewable and thermal energy
To meet the surge in electricity demand, Lombardy authorities are looking to expand both renewable and thermal power generation. More than 3 GW of additional thermal capacity has already been built, is under construction or has been approved, Mazoncini said.
The CEO explained: new data center It will be connected directly to Italy’s high-voltage power grid or to a nearby power plant. This strategy was adopted to avoid pressure on local distribution networks managed by A2A. This approach is designed to ensure that the city’s broader energy needs remain stable even as the data infrastructure grows.
Mazoncini said the government is supporting the transition by encouraging the use of renewable energy generation, such as solar and wind power.
Regarding Italy’s higher energy prices compared to other European countries, Mazoncini said, “Electricity prices are becoming concentrated across Europe.” “Spain, Italy and Ireland can produce solar panels and wind turbines at the same cost. That’s where the world is heading.”
He added that operators can also secure power through power purchase agreements (PPAs) with utility companies, which provides long-term price stability and helps companies meet their sustainability goals.
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