Italy’s race to build the infrastructure underpinning artificial intelligence is gathering pace, with Core Stack and Green Arrow Capital committing more than €1 billion (US$1.12 billion) to develop 13 data centres over the next four years.
The investment represents a significant expansion of Italy’s digital infrastructure ambitions, targeting medium-sized facilities rather than the enormous hyperscale campuses increasingly associated with the global AI boom.
Core Stack, the digital infrastructure business of Lazzari Group, will work alongside investment firm Green Arrow Capital to establish a geographically distributed network of facilities designed to meet growing demand for computing capacity, data storage and enterprise connectivity.
Unlike conventional data centre developments that depend heavily on electricity supplied through national grids, the proposed facilities will use renewable energy generated on-site.
That approach could become increasingly important as Europe’s data centre industry confronts mounting pressure over electricity consumption, grid capacity and the environmental costs of expanding digital infrastructure.
The companies expect to secure permits for their first two developments, located in the northern provinces of Cremona and Verona, by the end of 2027.
Operations at those facilities are scheduled to begin during the first quarter of 2028, establishing the initial phase of a broader national rollout.
Subsequent developments will concentrate on northern and northeastern Italy before construction shifts towards central and southern regions.
The geographical strategy reflects an increasingly important question facing Europe’s technology industry: whether computing infrastructure should remain concentrated around established metropolitan hubs or expand into regional locations closer to businesses and emerging industrial demand.
Smaller, distributed facilities could offer an alternative to large, centralised campuses, potentially reducing the distance between computing resources and the organisations that depend on them.
That could prove particularly relevant for latency-sensitive industrial applications, enterprise AI systems and workloads requiring reliable regional infrastructure.
However, the project’s commercial success will depend on factors extending well beyond construction.
Power availability, network connectivity, planning approvals and the ability to attract customers will all influence whether the proposed developments can compete in an increasingly crowded European market.
The renewable energy strategy also raises practical questions about generation capacity, storage requirements and how facilities will maintain uninterrupted operations when on-site production fluctuates.
Neither company has disclosed detailed technical specifications, individual facility capacities or the precise technologies that will underpin the proposed developments.
One distinctive element is the commitment to an entirely Italian supply chain, potentially creating opportunities for domestic engineering, construction and technology suppliers.
That emphasis also aligns with Europe’s wider debate over technological sovereignty, infrastructure resilience and dependence on international suppliers.
For Italy, the investment signals another attempt to translate rising demand for digital services into long-term domestic infrastructure development.
For Core Stack and Green Arrow Capital, the challenge now shifts from announcing capital commitments to securing permits, delivering operational facilities and demonstrating that renewable-powered regional data centres can compete commercially.
The first real test arrives in 2028, when the initial facilities are expected to begin operations.
