Eni and Khazna Forge AI‑Ready Data Hub Near Milan

Eni and Khazna have formalised a preliminary agreement to build a 500 MW AI‑oriented data centre campus in Ferrera Erbognone, near Milan, marking the first phase of a broader drive to establish up to 1 GW of IT capacity across Italy under Italy–UAE cooperation.

The project will tap “blue power” generated from an Eni-operated high‑efficiency gas plant featuring carbon-capture technology. This low-carbon power model aligns with efforts to decarbonise digital infrastructure and support AI workloads at scale. Analysts at Milan Polytechnic forecast investment in Italy’s data‑centre sector to double to €10 billion during 2025–26, propelled by tech sector expansion.

Under a heads‑of‑terms agreement—signed in Rome by Khazna CEO Hassan Alnaqbi and Eni COO Guido Brusco and witnessed by UAE Minister Reem Al Hashimy and Italy’s Minister Adolfo Urso—the partners will establish a joint venture to design, build and operate the campus. Khazna brings hyperscale data‑centre design expertise, while Eni contributes its energy-transition leadership.

Khazna’s Alnaqbi described the collaboration as a foundational step in the firm’s European expansion, stating: “Together with Eni, we are enabling the infrastructure needed for exponential AI growth—delivering the scale, sustainability and operational precision that next‑generation compute demands”. Brusco emphasised combining innovation and sustainability to deliver world‑class hyperscale infrastructure for Italy and Europe.

The data‑centre will be purpose-built for high‑performance computing, AI and HPC workloads, incorporating scalable and energy‑efficient designs that align with Europe’s digital ambitions. The use of blue power aims to pioneer a model linking decarbonised gas generation and data‑centre operations in Italy.

This venture emerges from a Letter of Intent dating to February’s state visit by UAE President Sheikh Mohamed bin Zayed Al Nahyan, in which Italy and the UAE committed to milestones in AI, energy‑transition and digital infrastructure. The 500 MW campus marks the first step toward a 1 GW national capacity plan.

Eni’s diversification strategy, including ventures in renewables, biorefining, carbon capture and sustainable data infrastructure, was highlighted earlier this year, when it announced plans for a carbon-capture and storage business and data‑centre offerings. The Milan project dovetails with this shift, deploying Eni’s carbon‑capture capabilities to support digital infrastructure.

Locating the facility in Lombardy taps into northern Italy’s advanced industrial ecosystem and connectivity infrastructure. Its proximity to Milan ensures high‑bandwidth access and seamless integration with enterprise and academic ecosystems—key for AI growth.

With data‑centre investment projected to double to €10 billion in the coming two years, Italy is emerging as a European hub for digital infrastructure. National authorities are expected to streamline permitting and grid expansion to support large‑scale developments, balancing the need for economic growth and environmental safeguards.

Risks include ensuring successful deployment of carbon‑capture technology, navigating regulatory approvals, and maintaining timelines. Public acceptance—particularly in light of industrial and environmental sensitivities—will also be crucial. Both Eni and Khazna will need transparent community engagement and robust sustainability credentials to uphold credibility.

The strategic Italy–UAE partnership extends beyond infrastructure to encompass finance, trade, and technological cooperation under a broader €40 billion investment framework. The AI data‑centre venture complements UAE investments in European AI, including a €1 billion supercomputer project announced earlier, positioning Italy as a continental AI node.

The Eni‑Khazna data‑centre campus shifts Italy’s digital landscape. If delivered as envisioned, its energy‑frontier model could provide a blueprint for decarbonised computing in Europe. The next 12–18 months will test execution on permitting, construction and operation, but this collaboration signals a bold stride in melding energy and digital transition.