Milan's data centre capacity set to surge tenfold in five years, A2A CEO says

Core Insights - Data centres in Milan are projected to increase capacity by approximately two gigawatts over the next five years, representing a tenfold growth from current levels [1] - The expansion of data centres is driven by the demand for artificial intelligence, which is expected to enhance revenues for utility companies like A2A [1] Group 1: Current Capacity and Demand - Milan currently has about 200 megawatts of installed data centre capacity, with peak electricity demand at 1.5 gigawatts [2] - New data centres will connect to Italy's high-voltage grid or directly to power plants, minimizing strain on the local distribution network managed by A2A [2] Group 2: Infrastructure and Support - A2A has over 3 gigawatts of additional thermoelectric power either built, under construction, or authorized in the region [3] - Local authorities are promoting an increase in renewable generation and thermal capacity to meet rising demand [2] Group 3: Market Dynamics - Despite higher electricity costs in Italy compared to other European countries, data centre developers remain undeterred [3] - The cost of electricity is becoming more uniform across Europe, with solar and wind energy production costs converging in countries like Spain, Italy, and Ireland [4] - Operators can secure power through purchase agreements with utilities, enhancing their operational viability [4] Group 4: Company Position - A2A is recognized as Italy's third-largest utility by customer numbers and the largest in the Lombardy region surrounding Milan [4]