Infranity Leads €375 Million Financing for Retelit to Boost Italy's Data Center Capacity
March 20, 2026
European asset manager Infranity has structured and is leading a €375 million (approximately $430 million) financing package for Retelit Datacenter (RDC), the data center platform of Italian telecoms provider Retelit Group. This strategic investment underscores the intensifying demand for digital infrastructure in Southern Europe, a region experiencing rapid growth fueled by cloud adoption, AI workloads, and increasing data localization requirements.
Infranity has committed €175 million (about $200 million) of the total package. The capital is earmarked to accelerate the expansion of RDC's existing facilities and fund the development of new sites across Italy. RDC, a wholly-owned subsidiary of infrastructure investment manager Asterion Industrial Partners, currently operates a network of 38 data centers nationwide. Its flagship facility, the Avalon Campus in Milan, serves as Italy's primary interconnection hub, hosting over 170 national and international operators. The company also operates a data center in Innsbruck, Austria.
Marie Dowlatyari, Investment Director at Infranity, commented on the transaction's significance: "This financing supports a highly strategic digital infrastructure platform in one of Europe's key markets. We are pleased to support Asterion and Retelit Datacenter in accelerating the expansion of critical data center capacity across Italy." She added, "This transaction reflects our belief in the value of long-term, capital-intensive assets, which play a key role in the digital transition."
The financing comes amid a period of significant activity for Retelit. In January, Bloomberg reported, citing sources familiar with the matter, that the company was in early-stage planning for a potential sale of its data center portfolio, which could be valued around €700 million ($830 million) and potentially occur in 2027. Sources stressed that no final decisions had been made. This latest investment could significantly enhance the scale and appeal of that portfolio. Retelit recently bolstered its infrastructure footprint by completing the acquisition of BT Italy's operations in October of the previous year. That deal expanded its fiber optic network to over 47,000 km and added four data centers in the Rome and Milan metropolitan areas.
Infranity, part of the Generali Investments ecosystem and specializing in sustainable infrastructure, is an active investor in the digital infrastructure space. The firm is also an investor in Vantage Data Centers and Etix Everywhere, contributed to a debt financing for Data4, and in February 2025 provided $135 million of a $148 million funding package for Nordic operator Borealis Data Center. The firm's continued backing of RDC signals strong confidence in Italy's position as a growing data center hub within Europe, driven by its strategic location and increasing enterprise digital transformation.
Source: datacenterdynamics
