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Italy Data Center Market Size

The Italy Data Center Market is projected to experience significant growth in its market size over the forecast period, driven by increasing demand for data processing and storage solutions. The expansion of Tier 4 data centers, in particular, is expected to lead the market in terms of capacity, as these facilities cater to the rising needs of sectors such as BFSI, media and entertainment, and manufacturing. The shift towards smart cities and the surge in video-on-demand subscriptions further contribute to the growing demand for larger data center facilities. As a result, the market's infrastructure is evolving, with a notable increase in the number of racks and the development of Tier 3 and Tier 4 facilities to accommodate this growth.

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Market Size of italy data center Industry

Italy Data Center Market Summary
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svg icon Study Period 2017 - 2029
svg icon Market Volume (2024) 411.4 MW
svg icon Market Volume (2029) 805.2 MW
svg icon Largest Share by Tier Type Tier 4
svg icon CAGR (2024 - 2029) 14.37 %
svg icon Fastest Growing by Tier Type Tier 3
svg icon Market Concentration High

Major Players
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*Disclaimer: Major Players sorted in no particular order

Key Players

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Italy Data Center Market Analysis

The Italy Data Center Market size is estimated at 411.4 MW in 2024, and is expected to reach 805.2 MW by 2029, growing at a CAGR of 14.37%. Further, the market is expected to generate colocation revenue of USD 2,006 Million in 2024 and is projected to reach USD 3,926.3 Million by 2029, growing at a CAGR of 14.37% during the forecast period (2024-2029).

USD 2006.01 Million

Market Size in 2024

USD 3,926.2 Million

Market Size in 2029

17.4%

CAGR (2017-2023)

14.4%

CAGR (2024-2029)

IT Load Capacity

411.4 MW

Value, IT Load Capacity, 2024

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The IT load capacity of the Italian data center market may grow steadily and reach 805.2 MW by 2029. Media & entertainment, manufacturing, BFSI, and e-commerce primarily catalyse growing IT load capacity by increasing data consumption.

Total Raised Floor Space

Sq. Ft. 2.74 M

Volume, Raised Floor Space, 2024

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The market is witnessing the entry of new players into the market, including the joint venture between Compass Data Centers and Hines. This joint venture would build a major facility with a capacity of 48 MW.

Installed Racks

137,135

Volume, Installed Racks, 2024

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The country's total number of installed racks is expected to reach 268,408 units by 2029. Greater Milan will likely house the maximum number of racks by 2029.

# of DC Operators & DC Facilities

16 and 29

Volume, DC Facilities, 2024

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Due to the growing demand of digitalization and the land required for the development of data centers is easily available and affordable, resulting in the increasing number of facilities from 29 to 31 in the future.

Leading Market Player

18.6%

Market Share, Aruba S.p.a, 2023

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Aruba led the market in 2023, with a share of 18.6% and an operational capacity of 72.8 MW. The company is expected to strengthen its presence in the Italian market by developing DC facility with an IT load capacity of 30 MW in Rome.

Tier 4 data center accounted for majority share in terms of volume in 2023, and is expected to dominate through out the forecasted period

  • The initial data centers were built in accordance with the minimal demand. Hence the data structure facilities created were small. These facilities were mainly Tier 1 & 2 certified due to their minimal requirements, and they had minimum racks installed. These data centers are expected to hold 3% of the market share, which is expected to decrease to 1% by 2029, with the segment accounting for an IT load capacity of 14.1 MW.
  • Tier 4 data centers lead the market in terms of capacity. Tier 4 data center capacity is expected to increase from 227.6 MW in 2023 to 918.2 MW in 2029 at a CAGR of 26.2%. The increasing demand for smartphone applications to view streaming content, play online games, and shop online by Italian users has led data center companies to increase the number of racks in their facilities.
  • Tier 3 facilities are expected to witness the second-highest growth of 15.8% during the forecast period, while the segment's IT load capacity is expected to grow from 163.06 MW in 2023 to 394.08 MW by 2029. It is also expected to hold a market share of 40.5% in 2023, which is expected to decrease to 29.7% by 2029, owing to the increasing development and infrastructural advancements of facilities to procure Tier 4 certification from the Uptime Institute.
  • As more cities adopt smart systems and evolve into smart cities, the demand for huge facilities to process data is expected to grow proportionally. The number of subscribers to VOD in Italy increased by five times, from 3.3 million in 2017 to 15 million in 2021. Thus, BFSI, media and entertainment, and manufacturing are end-user segments expected to boost the growth of Tier 4 and Tier 3 facilities in line with huge data generation.
Italy Data Center Market

Italy Data Center Industry Segmentation

Greater Milan are covered as segments by Hotspot. Large, Massive, Medium, Mega, Small are covered as segments by Data Center Size. Tier 1 and 2, Tier 3, Tier 4 are covered as segments by Tier Type. Non-Utilized, Utilized are covered as segments by Absorption.

  • The initial data centers were built in accordance with the minimal demand. Hence the data structure facilities created were small. These facilities were mainly Tier 1 & 2 certified due to their minimal requirements, and they had minimum racks installed. These data centers are expected to hold 3% of the market share, which is expected to decrease to 1% by 2029, with the segment accounting for an IT load capacity of 14.1 MW.
  • Tier 4 data centers lead the market in terms of capacity. Tier 4 data center capacity is expected to increase from 227.6 MW in 2023 to 918.2 MW in 2029 at a CAGR of 26.2%. The increasing demand for smartphone applications to view streaming content, play online games, and shop online by Italian users has led data center companies to increase the number of racks in their facilities.
  • Tier 3 facilities are expected to witness the second-highest growth of 15.8% during the forecast period, while the segment's IT load capacity is expected to grow from 163.06 MW in 2023 to 394.08 MW by 2029. It is also expected to hold a market share of 40.5% in 2023, which is expected to decrease to 29.7% by 2029, owing to the increasing development and infrastructural advancements of facilities to procure Tier 4 certification from the Uptime Institute.
  • As more cities adopt smart systems and evolve into smart cities, the demand for huge facilities to process data is expected to grow proportionally. The number of subscribers to VOD in Italy increased by five times, from 3.3 million in 2017 to 15 million in 2021. Thus, BFSI, media and entertainment, and manufacturing are end-user segments expected to boost the growth of Tier 4 and Tier 3 facilities in line with huge data generation.
Hotspot
Greater Milan
Rest of Italy
Data Center Size
Large
Massive
Medium
Mega
Small
Tier Type
Tier 1 and 2
Tier 3
Tier 4
Absorption
Non-Utilized
Utilized
By Colocation Type
Hyperscale
Retail
Wholesale
By End User
BFSI
Cloud
E-Commerce
Government
Manufacturing
Media & Entertainment
Telecom
Other End User
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Italy Data Center Market Size Summary

The Italy Data Center Market is experiencing significant growth, driven by increasing demand for data processing and storage solutions. The market is characterized by a shift towards more advanced data center tiers, with Tier 4 facilities leading in capacity expansion. This growth is fueled by the rising use of smartphone applications for streaming, gaming, and online shopping, which has prompted data center companies to enhance their infrastructure. The market is also witnessing a transformation in its demographic landscape, with smart city initiatives and increased broadband penetration contributing to the demand for robust data center facilities. Despite challenges such as an aging population and legislative measures affecting smartphone sales, the overall trend indicates a strong upward trajectory in data center capacity and revenue.

The market is fairly consolidated, with major players like Aruba SpA, Data4, Equinix, Inc., Irideos SpA, and Vantage Data Centers LLC dominating the landscape. These companies are actively investing in new facilities to meet the growing demand, as evidenced by recent expansions and developments in key locations such as Lombardy and Rome. The strategic focus on enhancing fiber connectivity and ultra-broadband services is expected to further bolster the market, enabling faster data delivery and improved interaction with internet exchanges. As Italy continues to advance in digitalization and telecommunications, the data center market is poised for substantial growth, supported by both technological advancements and strategic investments.

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Italy Data Center Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2029 AND ANALYSIS OF GROWTH PROSPECTS)

    1. 1.1 Hotspot

      1. 1.1.1 Greater Milan

      2. 1.1.2 Rest of Italy

    2. 1.2 Data Center Size

      1. 1.2.1 Large

      2. 1.2.2 Massive

      3. 1.2.3 Medium

      4. 1.2.4 Mega

      5. 1.2.5 Small

    3. 1.3 Tier Type

      1. 1.3.1 Tier 1 and 2

      2. 1.3.2 Tier 3

      3. 1.3.3 Tier 4

    4. 1.4 Absorption

      1. 1.4.1 Non-Utilized

      2. 1.4.2 Utilized

        1. 1.4.2.1 By Colocation Type

          1. 1.4.2.1.1 Hyperscale

          2. 1.4.2.1.2 Retail

          3. 1.4.2.1.3 Wholesale

        2. 1.4.2.2 By End User

          1. 1.4.2.2.1 BFSI

          2. 1.4.2.2.2 Cloud

          3. 1.4.2.2.3 E-Commerce

          4. 1.4.2.2.4 Government

          5. 1.4.2.2.5 Manufacturing

          6. 1.4.2.2.6 Media & Entertainment

          7. 1.4.2.2.7 Telecom

          8. 1.4.2.2.8 Other End User

Italy Data Center Market Size FAQs

The Italy Data Center Market is projected to register a CAGR of 14.37% during the forecast period (2024-2029).

Aruba SpA, Data4, Equinix, Inc., Irideos SpA and Vantage Data Centers LLC are the major companies operating in the Italy Data Center Market.

Italy Data Center Market Report Snapshots

Italy Data Center Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029