Microsoft logo in New York, USA. Photo: Kyodo/VNA
With this investment, Northern Italy will become one of Microsoft’s largest data center regions in Europe. Northern Italy will also serve as a key data center for the Mediterranean and North Africa, supporting the Global Partnership for Infrastructure and Investment and fulfilling the ambition of Italy’s G7 Presidency to promote cooperation with the Global South.
The US software giant intends to collaborate with industry partners, universities, non-profit organizations, and government organizations to train and upskill Italian workers in AI proficiency, technical AI skills, and promote safe and responsible AI development.
Microsoft will also launch initiatives for skilled workers from disadvantaged communities such as young people, especially women and those in disadvantaged areas, and in southern Italy. Microsoft’s move aims to help Italy maximize the opportunities of AI and contribute to addressing demographic challenges and boosting the country’s global competitiveness, supporting the Italian government’s vision of a resilient, innovative and inclusive economy.
The deal is the latest in a series of Microsoft investments in Europe. Earlier this year, Microsoft made a similarly large AI and cloud investment in Spain, followed by another major investment in Germany.
The announcement said Microsoft’s investment in northern Italy will play a key role in meeting the European data boundary, a geographic boundary where Microsoft stores and processes customer and personal data. European Union (EU) customer data is rarely transferred outside this boundary.
Microsoft says the adoption of generative AI could boost Italy's annual gross domestic product (GDP) by €312 billion over the next 15 years, while also adding €122 billion in value added to small and medium-sized enterprises and 'made in Italy' companies, even as the country faces a talent shortage and an aging population. Italy could lose around 3.7 million workers by 2040.
“This landmark investment underscores Microsoft’s long-term commitment to Italy’s digital transformation,” said Brad Smith, Microsoft’s vice president. “By expanding access to our AI technology and expertise, we are equipping the Italian government, businesses, and workforce at large with the tools to build an AI-powered economy that creates jobs and drives prosperity.”
According to a recent study by THEA Group and Microsoft Italy, Italian companies are seeing a significant increase in productivity thanks to generative AI. Today, 47% of companies using AI solutions report a productivity increase of more than 5%, while 74% have seen a productivity increase of more than 1%. These gains are particularly significant, considering that the overall productivity growth Italy has recorded over the past two decades is only 1.6%.
Earlier, on September 30, Italian Prime Minister Giorgia Meloni met with Larry Fink, CEO of the US investment company BlackRock, to discuss the company's possible investments in Italy to develop data centers, transportation and investment opportunities in other strategic sectors. The two sides agreed to set up a working group coordinated by the Italian Prime Minister to implement the projects to be developed.
Last month, Microsoft and BlackRock teamed up to invest in data centers to support AI development, primarily in the U.S. But the two will also invest some of the funding in “U.S. partner countries.”
