Description
Rome is a nascent data centre market that is starting to emerge to serve cloud service providers, OTTs and content providers that need to get close to the large population in Italy’s capital city, as well as the wider central and southern parts of the country, given Milan’s location in the north.
The market is projected to grow at a five-year CAGR of over 30% to nearly 95MW by 2029, but that forecast could be conservative given the various headwinds in play. Rome is the seat of the central government, which is driving a cloud-first strategy in a country where adoption among administrations and enterprises is still at a very early stage. It has a dense concentration of public sector organisations, utilities and R&D as well as strength in industries like pharmaceuticals and automotive that could generate localised AI demand. This could translate into accelerated demand at some point in the near-term.
Hyperscale cloud infrastructure regions are currently concentrated in Milan, but both Google and Oracle have opened regions in Turin, also in the north of the country. Rome is a likely contender for full cloud regions and challenges in the market will favour colocation over self-builds. Italy’s Aruba is a recent new entrant to Rome and it likely will not be the last as multiple companies, both domestic and international, have projects at various stages. We anticipate there could be sufficient hyperscale-grade data centre capacity, with geographic and operator diversity to serve cloud regions, as early as 2026.
Connectivity is an important piece of the puzzle as new subsea cables land in Rome to improve domestic and international connectivity. At the same time, terrestrial fibre is being expanded and upgraded to connect in the multiple subsea cables landing in the south of the country. The Rome market is not without its challenges. Land availability is good outside the city centre, but the acquisition process can be complicated, while permitting is complex and lengthy. There is a lack of knowledge about the data centre industry and its requirements among local officials and general contractors. These issues are being overcome as more operators descend on the market, and guidelines on data centres approved in the Milan area in summer 2024 should trickle down to Rome.
This is the first report in a new Structure Research series of Market Spotlights highlighting markets with signals of hyperscale demand and growth that have not yet reached a level of critical mass. This report is an excellent resource for any service provider, investor or enterprise end user looking to understand and project the data centre market in Rome or find a service provider.
Check out the report preview HERE
