Data Centers in Italy: AI Boosts Density, but the Electric Grid Remains the Limiting Factor

AI is changing the way data centers are designed. Not only because it increases demand for computing capacity but also because it brings more power into the racks, more heat to manage, and more energy to supply. Growth is no longer measured solely in square meters or the number of servers; it depends on the availability of electricity, the quality of utility services, and the efficiency of cooling systems that need to operate continuously.

This is the field where Georg Fischer, a Swiss multinational with over 200 years of history in industrial and infrastructural plant engineering, operates. In data centers, GF provides cooling systems, prefabricated solutions, and design support. Not just a single component to be installed at the end but part of the engineering architecture.

For Enrico Lucchin, Business Developer Cooling and Data Center at Georg Fischer, the leap in density affects how we view data centers more concretely. Servers, chillers, pipes, thermal power stations, and the electric grid can no longer be viewed separately, especially when liquid cooling brings water near high-density electrical equipment.

"We are talking about bringing water to cool something where there is electricity. The safety of what you propose must be absolute," explains Lucchin.

Demand Increases and the Grid Must Keep Up

In Italy, requests for connections for new data centers have reached very high levels, in the order of tens of gigawatts. But there is a significant gap between connection requests and actual projects. It’s necessary to verify if the project is feasible, whether the area is served, how much load the grid can handle, and in what time frames.

"[Constructors] may want and expect the Moon, but we must keep in mind the real possibilities of implementation," says Lucchin. Therefore, the availability of electric power becomes critical in every new project.

Terna is working on strengthening the lines, but the timelines are not immediate. Moreover, a more robust distribution network won't suffice if energy production doesn't grow at the same pace. Data centers add to an already increasing demand: industry, electrification of processes, mobility, new digital loads.

"It's the biggest question mark," affirms Lucchin. "Beyond how I organize distribution, I need raw material, which is energy. Where we go in terms of production is quite a challenge: nuclear, biomass, renewables; there are proposals in every direction."

Thus, not all requests will automatically become data centers. Some projects will need to be downsized, others relocated, and some will remain feasibility studies. The demand is there, but selection will be driven by available energy, connection times, and the economic sustainability of the investment.

Milan Remains Central, but Cannot Absorb Everything

Milan is still the most mature Italian hub for those wanting to build a new data center. It aggregates connectivity, companies, cloud demand, expertise, and a supply chain accustomed to working on these projects. This is also where the market organized itself first, and where investors continue to pay close attention.

"Milan is currently the most organized area in Italy, but it is also the densest in data center activities," observes Lucchin.

However, this concentration cannot grow indefinitely. Every new facility brings significant demands for power, cooling, space, and services. Therefore, the Italian map is expanding. Lucchin mentions Genoa, Padua, Rome, and Turin as areas where utilities, infrastructure, and location can support new establishments.

It's not just the hyperscalers moving. Alongside large campuses, medium and small data centers are taking shape, built by companies that are beginning to consider digital capacity as an asset. Not just an internal cost for data storage but a resource to be utilized internally and partially made available to third parties.

"An investment to store data, taken alone, is a naked and raw cost. Today I can also consider it as a platform to rent," explains Lucchin.

GF has worked on a data center in Verona built for the company’s internal needs. The next project, in Treviso province, will have a broader scope: serving the company while opening part of the capacity to the market.

Heat Can Re-enter the Urban Circuit

Cooling remains one of the heaviest items in managing a data center. The heat produced by servers needs to be removed but doesn't always have to be simply dissipated. Where district heating networks exist, it can be recovered and reused.

Lucchin cites the case of Brescia, where GF worked with A2A and a design firm to transfer the heat from a data center to an existing network. Not enough to power a city, but sufficient to prevent some thermal energy from being wasted externally.

"From a data center, we managed to utilize heat that otherwise we would have had to dissipate to supply a network serving some residences," he recounts.

The value of these interventions heavily depends on the context. If the district heating network is already in place, heat recovery can become part of the project. If it needs to be built from scratch, the approach changes. In any case, the interesting point is that the data center is no longer viewed solely as an energy load but also as a thermal source to integrate with urban infrastructures whenever possible.

Liquid Cooling Brings New Materials to Facilities

Increased density pushes towards liquid cooling. And when cooling changes, the choices regarding systems also change. Metal piping has dominated for years, but today weight, maintenance, corrosion, condensation, and installation time directly affect data center management.

GF proposes systems made from pre-insulated plastic material, such as COOL-FIT. In Milan, the company intervened in a data center about fifteen years old, replacing traditional solutions and installing a new line to support the plant’s expansion.

"We installed COOL-FIT, a pre-insulated system that is much lighter than iron, free from all types of maintenance, and with a lifetime projection greater than applications from fifteen years ago," explains Lucchin.

The transition isn't automatic. Designers and installers know iron, trust iron, and often prefer to stick with what they have always used. But in high-density data centers, this habit weighs more. Every downtime, every maintenance intervention, every issue on the cooling line can directly impact service continuity.

"You have to consider plastic material," says Lucchin. "Iron can create limitations that you cannot afford in a data center that operates 365 days a year, 24/7."

Hyperscalers Arrive with Defined Packages. The Local Supply Chain Leaves More Space

Large hyperscalers arrive in Italy with already defined architectures. They have global standards, internal teams, established procedures, and limited margins for modifying the project. This does not mean they overlook sustainability or efficiency. It means they often have already chosen how to build, with what criteria, and with which suppliers.

"Sustainability studies, energy savings, heat dissipation, and energy consumption are already very clear to them. These are determined and fairly closed ideas," explains Lucchin.

With Italian operators, design firms, and local installers, the work is different. Discussions include heat recovery, thermal power stations, materials, maintenance, depreciation, and consumption reduction. The process is longer, requires more calculations, and more dialogue, but it allows customization of the plant to the territory.

A data center in Milan does not have the same constraints as one in Padua, Turin, Rome, or Genoa. Energy availability, utility services, external temperatures, spaces, existing networks, and thermal recovery possibilities vary. It’s based on these differences that the design can have an impact.

The Market Doesn't Slow Down, but More Coordination is Needed

For now, projects continue. Design studies are working on initiatives of various sizes, and the AI push increases the demand for capacity. The risk isn’t a lack of demand; it’s that demand runs faster than the grid, authorization processes, and electricity production.

"This crisis is only sensed, not breathed," says Lucchin. "The lungs are still full of air, but not that big. The number of projects between design firms, hyperscalers, and owners is immense."

The growth of Italian data centers will therefore rely on a more challenging balance than seen so far. Private investments, network upgrades, new electric capacity, clearer authorizations, and better-designed plants will be necessary. AI drives demand, but the actual decisions about where to build will rely on much less visible factors: available power, piping, thermal power stations, utility services, and connection times.