Data4 Plans €1 Billion Italian Data Center Investment

(Bloomberg) -- Data center operator Data4 plans to create a new campus in Milan called “Mil02” in an effort to expand its Italian reach.

The company purchased a 77,000-square-meter (829,000 square feet) parcel of land where it will build eight data centers, according to a press release on Saturday. The facility will be its second investment in Italy, after setting up another center that’s also close to Milan. 

The new campus -- in Vittuone, west of the city -- is expected to be completed by 2027 and represents a real estate investment of €500 million ($535 million). 

“For the development of our digital infrastructures in Italy, Data4 plans to invest €1 billion between 2023 and 2029,” said Data4’s country director Davide Suppia. The company is also targeting turnover of €800 million by 2029.

Financing for the deal comes from a €2.2 billion loan, extendable to €3.2 billion, according to a spokesperson. BNP Paribas, Natixis, ABN AMRO and Deutsche Bank are the lenders. A first tranche of €1.2 billion has been used to refinance existing debt. 

“We have also already signed an option for a further tranche of up to €1 billion, which could be activated soon,” CFO Claire Vandromme added.

Paris-based Data4 specializes in the design, construction and management of buildings used as data centers in Europe. Brookfield Infrastructure bought the firm from Axa IM in November 2023.

Related:Amazon Said to Be Mulling Data Center Construction in Italy

Once the second campus is operational, the company will have 18 data centers in Italy and a total power of around 300 MW.

Italian newspaper Il Sole 24 Ore previously reported the investment plans.