Europe
May 16, 2025

Growing interest in data centers in Italy: renewable energy and storage as allies

Italy is attracting significant investment interest as a future digital hub, but faces significant obstacles: a lack of regulatory clarity, grid saturation, and a shortage of skilled labor, warns Francesco Salvan. Renewable energy and BESS are proving essential to sustaining growth.
By Emilia Lardizabal

By Emilia Lardizabal

May 16, 2025
italy data centre renewable storage

Italy is emerging as a strategic hub for data center development in Europe, driven by its geographical position and the growing need for digital infrastructure powered by renewable energy. However, the lack of clear regulations and the saturation of the electrical grid represent urgent challenges to overcome.

Francesco Salvan, Lead Client Delivery Consultant at KIGYO, states that “Italy is at the center of Europe and North Africa, making it an ideal location for internationally oriented data centers.” According to the executive, the country’s connectivity through submarine cables linking Africa and the Middle East further strengthens this privileged position.

The Rise of Data Centers and the Lack of Regulation

Interest in new developments is growing, but it clashes with insufficient regulatory frameworks. “Italy is key to the future of data centers, but it lacks regulation and grid capacity,” insists Salvan. This situation delays investment decisions and creates uncertainty among major tech companies.

According to the Italian Data Center Association, projections indicate a sustained annual growth rate of 30% over at least the next five years, and Italy is expected to reach between 1 and 1.5 gigawatts of installed capacity within five to seven years.

It is also important to note that the global rise of Artificial Intelligence (AI) is driving the growth of data centers, which already consume around 415 TWh annually worldwide, equivalent to 1.5% of global electricity consumption. The United States accounted for the largest share of global data center electricity consumption in 2024 (45%), followed by China (25%) and Europe (15%).

The International Energy Agency (IEA) forecasts that this demand will more than double by 2030, reaching 945 TWh, surpassing Japan’s current total electricity consumption. By 2035, it is expected to reach 1,200 TWh.

Adding to the lack of clear regulation is the saturation of the Italian electrical grid. “The grid is not ready for the number of connections required,” warns Salvan. According to Terna, there are more than 300 GW of pending connection requests, highlighting the significant pressure on the country’s energy infrastructure.

Despite these challenges, international investors remain committed to investing in such projects, according to the specialist.

The Role of BESS Storage Amid the Current Energy Situation

The rise of artificial intelligence and digitalization is driving energy demand to unprecedented levels. “We have never seen such high energy consumption in history,” Salvan warns. In this context, Battery Energy Storage Systems (BESS) have become essential to balance the grid.

However, BESS projects are expensive. “They require multimillion-dollar investments, and developers are waiting for regulatory definitions related to the FER X and MACSE frameworks to assess project profitability,” he explains. These mechanisms will allow investors to accurately calculate financial returns and make informed decisions.

The Growing Need for Professional Profiles in the Construction Phase

Many companies are currently in a waiting phase, pending the definition of regulatory frameworks such as MACSE and FER X, as well as the granting of permits. It is expected that, after this summer, a wave of data center and renewable energy project constructions will begin, triggering a growing and simultaneous demand for specialized professional profiles. The same trend is expected for 2026.

“After the summer, it will be difficult to find available Project Managers and technical profiles in the market. All companies will simultaneously seek talent for the construction phase and PV project developers,” Salvan anticipates. This situation puts the sector on alert, facing not only technical and financial challenges but also a severe shortage of qualified human capital.

The demand for talent goes beyond project management. According to Salvan, companies are actively seeking electrical engineers, BESS storage specialists, Grid Managers, Health & Safety experts, electricians, solar and wind system installers, and large project supervision technicians.

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