Microsoft Headquarters Credits: Gerard Julien/AFP via Getty Images.

Microsoft to invest billions in Italy

Business News

On Wednesday, Premier Giorgia Meloni met with Brad Smith, President of Microsoft, at Palazzo Chigi to discuss the company’s latest investment plans in Italy. Microsoft has committed to a €4.3 billion initiative aimed at expanding its cloud and artificial intelligence (AI) infrastructure over the next two years.

This investment represents Microsoft’s largest to date in Italy and is intended to support the country’s growing digital needs while enhancing its position as a technological hub in the Mediterranean.

According to a statement from Palazzo Chigi, Meloni welcomed the investment, particularly highlighting its role in meeting the increasing demand for AI services. The expansion will also focus on leveraging Italy’s expertise in higher education and research, contributing to the nation’s broader goals under the Mattei Plan for Africa and the G7-led Partnership for Global Infrastructure and Investment (PGII).

“Meloni expressed satisfaction for the important investment that Microsoft has announced to make in Italy to increase the data centres needed to support the growing demand for artificial intelligence services”, it said.

“The strengthening of computational capabilities, leveraging Italian excellence in higher education and research, will contribute to consolidating Italy’s role as a digital hub in the Mediterranean, also in line with the priorities of the Mattei Plan for Africa and the Partnership for Global Infrastructure and Investment (Pgii), a strategic initiative launched within the G7”.

New datacentres in Italy

One of the core elements of Microsoft’s initiative is the establishment of new datacentres in Northern Italy, which will serve both domestic needs and the broader Mediterranean and North African regions. This infrastructure is designed to meet European data requirements while enhancing Italy’s cybersecurity posture. Additionally, the investment will provide digital skills training to over one million Italians by 2025, with a focus on equipping the workforce with the skills needed to thrive in the AI-driven economy.

Microsoft’s investment comes at a critical time for Italy, as the country faces long-term challenges, including a shrinking workforce and an aging population. AI technologies, coupled with cloud services, are seen as key to addressing these demographic shifts by increasing productivity across various sectors such as healthcare, manufacturing, finance, and public administration.

The initiative is also expected to benefit small and medium-sized enterprises (SMEs), a vital part of Italy’s economy, by fostering innovation and entrepreneurship. Generative AI in particular has the potential to contribute significantly to Italy’s GDP, with estimates suggesting it could boost the economy by up to €312 billion over the next 15 years.

Recently Mario Draghi questioned the EU’s stance on AI.

Security and sustainability

Security and sustainability are integral aspects of Microsoft’s plans. The company is committed to ensuring its infrastructure operates under strict security protocols and environmental standards. Microsoft’s datacenters in Italy will adhere to the EU Code of Conduct for energy efficiency, and renewable energy sources will be prioritized to power the facilities.

In line with its commitment to responsible AI development, Microsoft is also focused on ensuring that AI technologies are used in ways that benefit society. The company has signed the Rome Call for AI Ethics, a global initiative that promotes a principled approach to AI, supported by diverse faith groups and organizations.

The Italian government views this investment as an opportunity to strengthen its digital economy and improve its global competitiveness. By integrating AI across industries and investing in skills development, Italy can make significant strides in technological innovation and economic growth, aligning with the government’s vision for a more resilient and inclusive future.

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