Pranav Hotkar
Milan, Italy - February 4, 2026 - Italian digital infrastructure provider Retelit S.p.A. said it will invest EUR 100 million (~USD 118 million) to develop two new data centers in Milan, expanding its footprint in one of Southern Europe’s fastest-growing data center markets and positioning the facilities to support artificial intelligence and high-density enterprise workloads.
The investment will be used to build the new facilities in Milan’s Bisceglie area, adjacent to Retelit’s existing Avalon Campus, forming an integrated data center hub designed to meet growing demand for cloud, edge computing, and AI-driven services. Retelit confirmed that it has acquired a real estate complex for the development, which will be integrated with its current Avalon3 site.
According to the company, the expanded campus will initially provide around 10 megawatts of IT capacity across approximately 10,500 square meters and will be designed to meet Tier IV standards, the highest classification for data center availability and fault tolerance. The facilities are expected to support enterprise customers, telecom operators, public sector organizations, and digital service providers.
Retelit said the new data centers will be AI-ready by design, incorporating infrastructure capable of supporting high-performance computing workloads, advanced cooling architectures, and scalable power distribution. The project also places a strong emphasis on energy efficiency and sustainability, including the potential for heat recovery systems that could be integrated into Milan’s district heating network.
Chief Executive Officer Jorge Álvarez said the investment strengthens Retelit’s long-term strategy to expand its role as a national and international digital infrastructure provider.
“This investment reinforces Milan’s position as a strategic digital hub and enables us to respond to increasing demand for secure, high-performance, and sustainable data center services,” Álvarez said, according to company statements.
Milan has emerged as Italy’s primary data center market, driven by rising demand from enterprises and cloud service providers seeking low-latency connectivity and proximity to major fiber routes. Industry analysts note that interest in AI-capable facilities has accelerated investment activity across the region, particularly for campuses that can scale power capacity while maintaining energy efficiency.
Retelit’s expansion comes as European data center operators increasingly prioritize modular growth, energy optimization, and AI readiness amid rising power constraints and sustainability requirements. The company said the Milan investment is part of a broader plan to strengthen its digital infrastructure portfolio and support Italy’s ongoing digital transformation.
