Digital Realty Plans €2 Billion Data Center Investment in Italy

According to Digital Realty Trust, the company plans to invest approximately €2 billion (about $2.3 billion) over the next five years to expand its data center footprint in Italy, as part of a broader strategy to strengthen its presence across the Mediterranean region.

Based in Austin, Digital Realty said it will develop new facilities in Rome and Milan while hiring several hundred employees locally to support operations and growth. Alessandro Talotta noted that the Mediterranean corridor plays a critical strategic role in global connectivity, as data traffic from Asia, the Middle East, and Africa flows through the region into Europe.

The company expects Italy to become one of its largest markets in Europe over time. The planned data center network in Rome and Milan will integrate with existing hubs in Barcelona, Marseille, and Athens, forming a wider Mediterranean interconnection ecosystem.

According to Fabrice Coquio, the Mediterranean region is projected to account for 56% of the company’s total capital investment in Europe, the Middle East, and Africa (EMEA) by 2030.

Digital Realty entered the Rome market in 2023 and is currently developing an 84-megawatt facility in Milan. Its Rome data center is designed to reach 62 megawatts of capacity and is expected to become operational in early next year. These projects aim to address rising demand for high-performance computing and cloud infrastructure driven by artificial intelligence workloads.

The company’s stock has gained more than 30% over the past year, supported by accelerating global demand for data center capacity. Across Europe, AI-related infrastructure financing has also been increasing, including debt funding for data center assets and large-scale securitization transactions tied to hyperscale facilities.

Despite strong regional momentum, Digital Realty emphasized that Europe still lags behind the United States in deployment speed, where faster permitting processes and more aggressive industrial policies are accelerating infrastructure buildouts. The company also referenced recent project adjustments in the AI sector as operators optimize cost structures amid rapid expansion.

Industry data suggests that global data center capacity is expected to grow by 22% in 2025, reaching a record high, driven largely by artificial intelligence computing demand. Digital Realty, which operates more than 300 data centers worldwide, expanded its European presence through the acquisition of Interxion in 2019.

In addition to its core expansion projects, Digital Realty is also evaluating participation in a European Union-backed AI “gigafactory” initiative planned in Italy, which could require around 200 megawatts of additional capacity. The company said discussions with the Italian government are ongoing, and the project could represent a significant future investment opportunity.