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Microsoft to open $1.5bn cloud region in Italy

Microsoft is to open its first cloud data centre region in Italy to deliver better connectivity and lower latency for customers, partners and service providers using its Azure cloud services. The five-year, $1.5bn investment plan aims to create new business opportunities from a base in Milan, Northern Italy. Earlier this month, cloud service provider rival Amazon Web Services launched its first cloud region in Milan too.

The pair's investments will be a boon to the struggling Italian economy as the country begins to recover from the effects of the pandemic.

Jean-Philippe Courtois, executive vice president and president for Microsoft global sales, marketing and operations, said: “This plan will support those working across the country to sustain and rebuild businesses, to explore new entrepreneurial opportunities and help solve some of the country’s most difficult challenges, all while meeting critical security and compliance needs.”

He said: “We see enormous potential to accelerate innovation within the national ecosystem through cloud services, AI and digital skilling. Our mission is to empower the people and organisations of Italy to achieve more.”

Giuseppe Conte (pictured), prime minister of Italy, said: “This ‘Ambizione Italia #DigitalRestart’ plan will help accelerate the digital transformation of our country. Microsoft’s initiative, with cloud services and digital smart-working programmes dedicated to small and medium-sized enterprises, will certainly help Italy move even faster in this direction. The new Sustainability Alliance that Microsoft aims to bring is also of utmost importance to the national Green New Deal.”

According to joint research conducted by Politecnico di Milano School of Management and Microsoft Italia, establishing a data centre region of this size “may” generate more than 10,000 job-related opportunities and an estimated $9bn in “direct and indirect business impact” by the end of 2024. The forecast covers data centre construction and operations as well as opportunities for businesses and the technology ecosystem.

Microsoft has not confirmed when the new data centre capacity will open up and which data centre operators it will be using to deliver it. Amazon's Milan cloud region is already “live”.