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Microsoft to invest €4.3B in Italy AI infrastructure

Italy AI
Italy AI

Microsoft has announced its largest investment in Italy to date. It plans to invest €4.3 billion ($4.8 billion) over the next two years to expand its country’s artificial intelligence (AI) and cloud infrastructure. The investment will establish the ItalyNorth region as one of Microsoft’s biggest European data centers, serving as a key hub for the Mediterranean and North Africa. The move aims to help Italy maximize the opportunities of AI and support the government’s focus on long-term economic growth and demographic challenges.

Microsoft’s data center expansion and its commitment to provide digital skills training to more than 1 million Italians by the end of 2025 address the rising demand for AI computing and cloud services nationwide. Brad Smith, Vice Chair and President of Microsoft, met with Prime Minister Giorgia Meloni in Rome, where the Prime Minister’s office welcomed the investment to bolster Italy’s digital role in the Mediterranean. Smith emphasized Microsoft’s long-standing commitment to Italy’s digital transformation: “By expanding access to our AI technology and expertise, we are equipping the Italian government, businesses, and the broader workforce with the tools to build an AI-driven economy that creates jobs and drives prosperity.

Adopting AI in small and medium-sized enterprises (SMEs) can unlock new levels of innovation and entrepreneurship, address demographic challenges, and strengthen Italy’s global competitiveness.

Security remains at the core of this investment, ensuring technology and services protect and maintain trust while supporting Italy’s cybersecurity posture.

Microsoft boosts Italy’s AI infrastructure

To help companies understand AI’s growth opportunities, Microsoft Italy has created a network of over 320 companies and 30 local partners.

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Over the past year, this network has developed more than 450 Generative AI projects, with 50 percent already operational. Companies using AI solutions have experienced tangible productivity gains, with 47 percent reporting increases of more than 5 percent. Microsoft and its partners will introduce training programs to skill more than 1 million people in Italy by 2025, focusing on AI fluency, technical AI skills, AI business transformation, and promoting safe and responsible AI development.

Collaborations with certified training partners, universities, nonprofit organizations, government institutions, and associations will launch skilling initiatives for professionals and students, including those from disadvantaged communities. Earlier this week, Prime Minister Meloni also met with BlackRock Inc’s chief Larry Fink in Rome to discuss potential investments in data centers and support for energy infrastructure. Last month, BlackRock and Microsoft announced a fund valued at over $30 billion, aimed at investing in AI-focused data centers, AI supply chains, and energy sourcing, with an initial focus on the U.S. market and subsequent expansion to U.S. partner countries.

This significant investment from Microsoft marks a crucial step in Italy’s digital transformation journey, promoting innovation, upskilling the workforce, and securing Italy’s competitive edge in the global AI economy.

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