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Data Centers in Milan

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Milan – Southern Europe's Connectivity Hub

Milan is the premier Italian market for digital infrastructure, serving as a critical gateway for enterprises targeting Southern Europe and beyond. Its dense concentration of network carriers and direct cloud access provides a low-latency, high-performance environment essential for financial services, media, and multinational corporations. This strategic location delivers reliable, high-speed connectivity crucial for driving revenue and securing digital assets.

Milan: At A Glance

FactorRating / DataNotes
Global Connectivity GradeAExcellent access to terrestrial and subsea cable systems.
Direct Cloud On-RampsOver 7 — as of September 2025AWS, Azure, Google Cloud (GCP), IBM, Oracle.
Power Cost€0.21-€0.26/kWh — as of September 2025Industrial rates reflect a mix of fossil fuels and renewables.
Disaster RiskLow (3/10) — as of September 2025Primary risks are seismic and flood-related; manageable with modern facility design.
Tax IncentivesYesSubsidies are available for implementing energy-efficient systems and infrastructure improvements.
Sales Tax22% VAT — as of September 2025Standard Italian Value Added Tax applies to services.

Network & Connectivity Ecosystem

Milan has firmly established itself as Italy's primary interconnection point and a rapidly growing European hub. The market's rich connectivity is a key reason businesses choose Milan for their colocation and network needs.

Carrier Density & Carrier Neutrality With over 40 unique network providers, as of September 2025, Milan offers a competitive and diverse marketplace. The presence of numerous carrier-neutral data centers ensures customers can connect to the partners and services that best fit their requirements, fostering competition and reducing costs.

Direct Cloud On-Ramps The market features over 7 dedicated cloud on-ramps providing direct, private access to major platforms, including AWS, Google Cloud (GCP), Microsoft Azure, IBM Cloud, and Oracle Cloud. These connections bypass the public internet, offering lower latency and higher security for hybrid cloud workloads connecting to 20 global cloud regions.

Internet Exchange Points (IXPs) The primary exchange in the city is the Milan Internet eXchange (MIX). It serves as the main traffic hub for Italy, facilitating efficient, low-cost peering between hundreds of domestic and international networks.

Bare Metal Bare metal server options are readily available from multiple providers in Milan. Companies like Hivelocity and phoenixNAP offer dedicated server solutions for workloads that demand the highest levels of performance and security.

Power Analysis

Average Cost Of Power Industrial power pricing in Milan typically ranges from €0.21 to €0.26 per kWh, as of September 2025. This rate is influenced by Italy's energy mix, which is approximately 60% fossil fuels and 40% renewables. Predictable power costs are essential for managing the total cost of ownership for data center operations.

Power Grid Reliability The power grid serving Milan's primary data center zones is well-engineered and stable. Major colocation facilities are supported by redundant power feeds from multiple utility substations, ensuring high levels of uptime for mission-critical applications.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Data centers in Milan are strategically located to serve the city's core financial and commercial districts, including the Borsa Italiana (Italian Stock Exchange). This proximity provides low-latency connectivity for trading platforms, banking systems, and corporate headquarters.

Regional Market Reach Milan is an ideal hub for serving not only the 10 million people in its metropolitan area but also the broader markets of Southern Europe, the Balkans, and North Africa. Its dense network and subsea cable connections make it a strategic aggregation point for traffic entering and leaving the region.

Tax Advantage For Data Centers Italy offers tax credits that can lower the capital investment required for new equipment. Subsidies for energy-efficient systems and related infrastructure improvements directly reduce operational expenses and support corporate sustainability goals.

Natural Disaster Risk

Milan has a Low overall disaster risk profile, with an INFORM Risk score of 3 out of 10, as of September 2025. While the overall risk is minimal, operators should engineer facilities to mitigate specific, localized threats.

The most significant natural hazards for the region are:

  • Earthquake: 7.7/10
  • Coastal Flood: 6.5/10 (regional risk)
  • River Flood: 6.2/10
  • Tsunami: 6.1/10 (regional risk)

Although Milan is located inland, regional seismic activity is the primary consideration for structural engineering. Flooding risk is localized and typically addressed through site selection and facility hardening measures.

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