Microsoft is investing €4.3 billion (around $4.75 billion) in Italy to enhance AI infrastructure and build more data centers. The company will establish the ItalyNorth cloud region, which is set to become one of Microsoft's largest data centers in Europe.
The facility will not only serve Italy and Europe but also act as a vital data hub for the Mediterranean region and North Africa. The move is part of Microsoft's broader strategy to enhance its global cloud infrastructure, as demand for AI and cloud services continues to soar across various industries.
On Wednesday, Microsoft Vice Chair and President Brad Smith met with Prime Minister Giorgia Meloni in Rome to discuss this investment. Smith's visit coincided with Meloni's earlier meeting on Monday with Larry Fink, CEO of BlackRock Inc. BlackRock and Microsoft also have a $30 billion fund aimed at investing in AI-focused data centers and supply chains. However, this fund is to target the U.S. market first before expanding to partner countries like Italy.
AI applications often require extensive computational resources to process massive datasets and perform complex calculations. This requires specialized data centers equipped with hardware capable of handling such workloads. Microsoft is also expanding its presence in regions like Iowa, Virginia, and Washington by building new data centers. Other companies such as Google and AWS are also expanding their data centers globally to be ready for the same.
Microsoft's expansion of its data centers is also built on its commitment to using 100% carbon-free energy by 2025. The Redmond company recently made headlines by acquiring the Three Mile Island nuclear facility in Pennsylvania to meet its energy demands for data centers in the U.S. by partnering up with Constellation. The deal will allow Microsoft to source up to 35% of its energy from nuclear power.
Nvidia has also shown interest in nuclear power as part of its broader energy requirements. CEO Jensen Huang recently said that nuclear energy is a wonderful option for powering its data centers, along with other sources of energy.
via Reuters | Photo via DepositPhotos.com
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