Italy is the next port of call on Microsoft's hyperscale grand tour

Microsoft has just announced plans to splurge €4.3 billion over the next two years to expand its hyperscale cloud and AI infrastructure in Italy. The initiative comes with a pledge to provide digital skills training to more than 1 million locals by the end of 2025.

When complete, the expanded data centre will be one of Microsoft's largest in Europe, boosting the continent's digital ambitions – particularly with regards to data sovereignty.

It will also serve as a data hub for the Mediterranean and North Africa. As current president of the G7, this aligns neatly with Italy's stated aim of fostering closer ties with the so-called Global South. However, it's also worth noting that the data centre itself will be located in northern Italy, which could reinforce the economic disparity between north and south in its own back yard.

Irrespective of where the data is centred, Microsoft says its investment will spur Italy's adoption of generative AI (GenAI) services, the expected economic benefits of which are impossible to overlook – mainly because it hired think tank TEHA to work them out.

According to the study, broad adoption of this technology could boost Italy's annual GDP by up to €312 billion over the next 15 years, and add €122 billion of value to Italian-headquartered companies and SMEs. This would more than offset the expected decline in productivity that Italy faces over the coming years, with its workforce on course to shrink by 3.7 million by 2040.

Microsoft is also keen to point out that the expanded facility meets all the requirements when it comes to sustainability.

It has signed three power purchase agreements (PPAs) for renewable energy and said it is "pursuing additional contractual opportunities in the near future."

Microsoft is also in the midst of converting its backup generators to run on biofuel, which should reduce net carbon emissions. The data centre in its current form has also achieved LEED Gold certification – a measure of how green a building is. Microsoft said its owned data centres in its Italy North region also tick all the necessary EU boxes for energy efficient data centres.

"This new investment confirms our commitment for the sustainable growth of Italy by helping organisations harness the power of cloud and generative AI while providing Italians with the skills to maximise these technologies. Our Italy North Region will continue in accelerating digital transformation and skills in Italy, ensuring that no one is left behind," said Vincenzo Esposito, general manager of Microsoft Italy.

The announcement comes mere months after Microsoft unveiled plans to spend $3.2 billion to expand its cloud and AI infrastructure in Sweden. In April, it made a similar announcement pertaining to its Japan operation.

And this is just one hyperscaler. Amazon Web Services (AWS), Google Cloud – they're at it as well. Given the rate at which these already huge companies are expanding, it might be time to start considering the potential downsides of a global cloud monoculture.