Italy unveils €10 billion plan to accelerate ultra-broadband infrastructure for AI era

Italy is drafting a €10 billion strategy to enhance its ultra-broadband network, aiming to meet the rising demands of artificial intelligence and data centres, with significant investments from government and private sectors.

Italy is drawing up a new push to bolster ultra-broadband infrastructure as policymakers weigh how to keep pace with the demands of artificial intelligence and data centres. According to Wired Italia, a draft strategy already on the desk of the digital transformation department at Palazzo Chigi centres on a proposed Next Generation Edge Network, or Ngen, designed to give the country a stronger backbone for computing capacity and data sovereignty.

The plan carries an estimated price tag of about €10 billion. Wired Italia reported that roughly €5 billion would be needed for physical and network infrastructure, to be financed through a mix of national money still to be allocated and European funds, including cohesion resources, while the remainder would be left to private investors. The document also foresees a sharp rise in the electricity required by data centres in Italy, with demand projected to increase by 900 megawatts by 2030 to reach around 1.4 gigawatts overall.

The proposal comes as Italy tries to build on earlier connectivity schemes. The country’s broadband policy already includes the government’s 2023-2026 ultra-broadband strategy, worth up to €2.8 billion, while the European Commission says Italy’s wider digital connectivity framework includes €5.3 billion for ultra-broadband projects such as Italy 1 Giga, Italy 5G, connected schools and healthcare facilities, and links for smaller islands. In a separate move, the European Investment Bank recently approved a €1 billion package for FiberCop to expand and modernise fibre-to-the-home coverage, with an initial €500 million tranche aimed at connecting a further 5.8 million property units by the end of 2027.

Private operators are also moving on related upgrades. Retelit has said it is investing €20 million in a network overhaul it describes as AI-ready and protected against quantum threats, with capacity of up to 800 Gbps per circuit and coverage planned for more than 70 provincial capitals by 2026. For supporters of the new Italian plan, the argument is clear: without faster and more resilient digital infrastructure, the country risks missing out on the next wave of AI investment and leaving critical data flows dependent on systems it does not fully control.

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Source: Fuse Wire Services