(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.
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.
