Microsoft Breaks Ground on New Data Center in Northern Italy, Advancing $4.75 Billion Investment Plan
February 5, 2026
Microsoft has commenced construction on a new data center campus in Bornasco, Italy, marking a significant step in its multi-billion dollar commitment to expand cloud and artificial intelligence infrastructure in the country. The move underscores the intensifying competition among hyperscalers to build capacity in key European markets to meet soaring demand for AI and cloud services. The tech giant has begun building the facility at Via dei Pioppi & Via Rimembranze in Bornasco, a town located approximately 25 kilometers south of Milan. Preliminary site preparation work, including excavation and land grading, was initiated in September 2025 by contractor GSE Italia, with official construction launching on January 12, 2026. The project, first proposed in a June 2022 application, is set to feature two data center buildings and will be supported by 50MW of on-site backup generation capacity.
This development is a direct component of Microsoft's broader €4.3 billion ($4.75 billion) investment plan for Italy, announced in October 2024. The company stated at the time that it aimed to transform its Northern Italy cloud region into one of its largest in Europe. The Italian Azure region, initially announced in May 2020 and launched in 2023, is primarily based in Milan. Industry sources, including a statement from data center operator Stack, suggest part of the region is hosted at Stack's Milan facility. Furthermore, in a May 2025 partnership, Microsoft teamed with Italian provider Aruba to offer localized Azure services from data centers in Bergamo, Arezzo, and Rome. The Bornasco project also aligns with Microsoft's sustainability goals for the region. Earlier this month, renewable developer Enfinity Global brought a 33.8MW solar farm online in Italy under a long-term power purchase agreement (PPA) with Microsoft. This project is part of a larger PPA framework expected to deliver up to 366MW of renewable energy capacity to power Microsoft's Italian operations.
The expansion solidifies Italy's position as a growing hub for digital infrastructure in Southern Europe, providing critical compute resources for local businesses and the public sector while contributing to the continent's overall AI readiness.
Source: datacenterdynamics
