Infranity is leading a €375million ($430m) financing package for the data center arm of Italian telecoms provider Retelit Group.

According to news agency Agenzia Nova, the European asset management firm has committed to €175 million ($200m) of the total package.

The move aims to expand the capacity of Retelit Datacenter’s (RDC) existing facilities and support the development of new sites across Italy.

RDC is the data center platform of the Retelit Group, a wholly owned subsidiary of infrastructure investment manager Asterion Industrial Partners.

It operates 38 data centers nationwide, including the Avalon Campus in Milan, the country’s main interconnection hub, which hosts over 170 national and international operators. It also operates a data center in Innsbruck, Austria.

Marie Dowlatyari, investment director at Infranity, said: “This financing supports a highly strategic digital infrastructure platform in one of Europe’s key markets. We are pleased to support Asterion and Retelit Datacenter in accelerating the expansion of critical data center capacity across Italy.

“This transaction reflects our belief in the value of long-term, capital-intensive assets, which play a key role in the digital transition.”

In January, Retelit was reportedly looking to sell its data center portfolio for €700m ($830m).

According to Bloomberg, quoting sources familiar with the matter, the company was in the early stages of planning the sale, which could take place in 2027. However, Bloomberg’s sources stressed that no decisions had been made.

Retelit completed the acquisition of BT Italy’s operations last October, expanding its fiber optic network to over 47,000 km (29,204 miles) and adding four data centers in the metropolitan areas of Rome and Milan to its portfolio.

Infranity is a European asset management company specialising in sustainable infrastructure investments and is part of the Generali Investments ecosystem.

It is also an investor in Vantage and Etix Everywhere, and recently contributed to a Data4 debt financing. In February 2025, the firm contributed $135m of a total $148 million funding package to fund the expansion of Nordic firm Borealis Data Center.

Learn more about the data center market in Italy and Southern Europe, and meet with other executives and experts from the region at the DCN Milan event later this year