Microsoft is making a significant investment of €4.3 billion (approximately $4.75 billion) in Italy to bolster AI infrastructure and establish additional data centers. This initiative will see the creation of the ItalyNorth cloud region, poised to become one of Microsoft’s largest data center operations in Europe.
This strategic move is part of Microsoft’s ongoing effort to improve its global cloud infrastructure, in response to the increasing demand for AI and cloud services across a range of industries.
On Wednesday, Microsoft Chairman Brad Smith discussed this significant investment with Prime Minister Giorgia Meloni during their meeting in Rome. Smith’s discussions followed Meloni’s earlier meeting on Monday with Larry Fink, the CEO of BlackRock Inc. Notably, BlackRock and Microsoft have partnered in a $30 billion fund dedicated to investing in AI-focused data centers and supply chains, initially targeting the U.S. market before expanding to partner nations such as Italy.
AI applications necessitate considerable computational power to manage extensive datasets and execute complex calculations. This demand requires specialized data centers outfitted with the necessary hardware for such tasks. In addition to its initiatives in Italy, Microsoft is broadening its footprint in regions like Iowa, Virginia, and Washington through new data center constructions. Competitors such as Google and AWS are similarly expanding their data center capabilities to meet the growing demand.
Microsoft’s data center expansion is aligned with its commitment to achieving 100% carbon-free energy by 2025. Recently, the software giant made headlines by acquiring the Three Mile Island nuclear facility in Pennsylvania. This acquisition, in collaboration with Constellation, is expected to help Microsoft meet its energy needs for U.S. data centers, with plans to source as much as 35% of its energy from nuclear power.
Furthermore, Nvidia has also demonstrated an interest in incorporating nuclear energy to fulfill its energy requirements. CEO Jensen Huang has expressed that nuclear energy represents a compelling option for powering its data centers, alongside other energy sources.
via Reuters | Photo via DepositPhotos.com
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