Italy Data Center Power - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Italy Data Center Power Market size is estimated at USD 268.70 million in 2024, and is expected to reach USD 431.80 million by 2029, growing at a CAGR of 9.80% during the forecast period (2024-2029).

The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country.

Key Highlights

• Under construction IT load capacity: The upcoming IT load capacity of the data center market in Italy is expected to reach 300 MW by 2029.
• Under construction raised floor space: The country's construction of raised floor area is expected to increase by more than 2.0 million sq. ft by 2029.
• Planned racks: The country's total number of racks to be installed is expected to reach 102,000 units by 2029. The Greater Milan region will likely house the maximum number of racks by 2029.
• Planned submarine cables: There are close to 32 submarine cable systems connecting Italy, and many are under construction.

The increasing need for data storage has resulted in an upsurge in the number of data centers, and the rising usage of data centers has increased electricity consumption in the country. Italy made clear progress in increasing competition in electricity and natural gas markets. It has reduced the use of fossil fuels and increased the share of renewable energy. The country’s economy is also becoming less energy-intensive. Moreover, to further reduce energy consumption, key market players are focusing on introducing efficient power management systems such as PDUs, busways, and UPS for the purpose of controlling unnecessary expenditures in data centers, which is expected to drive the market’s growth.

Italy Data Center Power Market Trends

IT & Telecommunication Segment to Hold Major Share in the Market

• The increased adoption of cloud computing services in the country has increased the number of IT infrastructure components. Many technology companies have launched cloud services to support the digital transformation efforts of many enterprises. Moreover, the increased adoption of e-commerce services has facilitated digitization. These instances are anticipated to boost the Italian data center power market during the forecast period.
• Moreover, the data center market is achieving new records due to the increasing penetration of connected devices, including consolidation and the emergence of new players. Such cases are expected to have a positive impact on the market’s growth.
• The number of servers in data centers in Italy is likely to increase due to the growing demand for these digital services. Changing adoption of end users, primarily focused on digital connectivity, requires more data storage. Typically, this situation corresponds to increased demand for data centers. Increasing data centers necessitates more systems for power facilitation.
• The increase in data consumption in the country is a result of the high competition among telecom service providers, leading to increased discounts and offers on data and the adoption of 4G and 5G services among consumers, which increased the affordability of mobile data. The increase in the number of 5G devices may significantly increase data consumption because of the increased average data speeds delivered, which would further generate more data to be processed. Such developments are expected to generate crucial demand for data center facilities to efficiently handle and analyze data sets.
• The significant number of internet exchanges in Italy highlights how the region will benefit from fiber connectivity expansion, jointly contributing to strengthening the region's connectivity portfolio. The highly potent internet exchange facilities support data centers for data transmission functions, which is expected to positively affect the data center power market.

PDUs Expected to Hold Significant Share in the Market

• The growing focus on digitization, internet penetration, and e-commerce across the country has created more need for storage capacity, resulting in huge demand for data centers and increased power consumption. The growing need for data storage is leading to the adoption of intelligent power distribution units (PDUs) to optimize power consumption in data centers rather than simple multi-socket rack installations and servers and networking devices.
• PDUs are essential components of data center and server room infrastructure, allowing real-time monitoring of power consumption, voltage, current, and other electrical parameters. This data allows administrators to make informed decisions about power allocation and capacity planning.
• By tracking power consumption trends, managers can plan for future growth and avoid exceeding power capacity, preventing overloads that can lead to equipment failure. It also helps identify inefficiencies and optimize energy consumption. This eliminates unnecessary power consumption, lowers costs, and reduces environmental footprint. In addition, administrators can access and control it remotely, reducing the need for physical presence and minimizing disruption to operations.
• Industrial end users are gravitating toward cloud platforms such as Microsoft Azure, Google Cloud, and AWS. Growth trends indicate rapid adoption of cloud-based applications by end users. This opens up opportunities for intelligent and compact PDUs that can meet the increasing power requirements to operate such platforms.
• With the growth of mega and massive data centers in the country, the need for PDUs is also increasing. Faster internet speeds and the associated proliferation of accessible devices play an important role in determining and estimating national data consumption. The number of 5G mobile connections has increased significantly, which means that the penetration rate of 5G mobile in the country is high. Increased data traffic may further increase the demand for DC facilities with intelligent PDU systems.

Italy Data Center Power Industry Overview

The data center power market in Italy is moderately concentrated due to higher initial investments and low availability of resources. It is dominated by a few major players like Schneider Electric SE, Fujitsu Ltd, Cisco Technology Inc., Eaton Corporation, and ABB Ltd. These major players, with a prominent market share, focus on expanding their customer base across foreign countries. Major companies leverage strategic collaborative initiatives to increase their market share and profitability. However, with technological advancements and product innovations, mid-size to smaller companies have increased their market presence by securing new contracts and tapping new markets. For instance,

• January 2024: Vertiv announced plans to double its manufacturing capacity for busway, switchgear, and integrated modular solutions (IMS) by 2025. The expansion plans include increasing the utilization and footprint in the United Arab Emirates, Ireland, South Carolina (United States), Mexico, Slovakia, and Northern Ireland.
• December 2023: Eaton, an intelligent power management company, announced the launch of its new Rack PDU G4 (4th generation) that provides high security and business continuity data centers. It also combines with C39 outlets that securely connect both C14 and C20 power cords, backed by a locking mechanism and a built-in high retention system that secures the power cord.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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