UK infrastructure developer Greenfield and Finsbury Infrastructure have announced a strategic partnership to develop a 36MW data center east of Milan, Italy.

The companies plan to invest up to €360 million ($418m) in the project and the local region over the next three years.

Greenfield said in a LinkedIn post that it has already secured 80MW of power capacity for the site.

The London-based firm said the data center will be designed to support growing demand from AI, cloud computing and enterprise customers while also contributing to regional investment, employment and the growth of Italy’s digital economy.

Greenfield’s data center portfolio includes nine projects in Switzerland and Italy, where it has an office in Pisa. The company says it incorporates “sustainable practices and energy-efficient technologies” to reduce the environmental impact of its clients.

Finsbury Infrastructure is a specialist developer and investor headquartered in Ireland and focused on renewable-powered data center campuses. The firm said its team has a track record of 5GW of renewable projects under development across Europe and Australia.

Peter Connolly, finance director at Finsbury Infrastructure, said: “We are delighted to invest in our first project in Milan with Greenfield, who have huge experience developing power infrastructure in Italy and across Europe.

“We look forward to developing the project with Greenfield and investing in further projects in Italy as it grows as a center for the European digital economy.”

Ciro Morlino, chief growth officer of Greenfield, said: “Demand for digital infrastructure continues to accelerate as artificial intelligence, cloud computing, and digital transformation reshape the global economy.

“Our partnership with Finsbury represents an important milestone for Greenfield as we continue to expand our digital infrastructure activities across Europe. By bringing together land, power, planning, and connectivity, we are creating a flagship development capable of supporting the next generation of digital services.”

Lombardy, particularly the Milan metropolitan area, has become a hotspot for data center development in Italy. Its strategic connectivity, lower operational costs compared to more mature markets, and renewable energy access have made the area particularly desirable for international tech companies.

Major hyperscalers, including Google, Microsoft, and AWS, already operate cloud regions in the region.

But the expansion of data centers has also sparked a backlash from residents and local politicians who have raised concerns about the viability and environmental impact of these energy-intensive projects.

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 next year