Italy’s Emerging Regulatory Framework for Data Centres

In late 2025, the Italian government enacted a comprehensive Energy Decree (Decree-Law No. 175 of 21 November 2025) which was supposed to introduce a range of urgent measures on energy policy — including, for the first time, specific regulatory provisions governing data centres. These norms were unexpectedly removed the day before publication, with the announcement that they will soon be included in a specific decree for data centers which is expected soon.

The expected new regulations would mark an important policy shift as Italy seeks to balance the rapid growth of digital infrastructure with streamlined permitting, grid stability and sustainability considerations. 

It should be noted that Italy has no specific regulations on data centers, with only guidelines having been issued to date, mainly for environmental aspects.

Data Centres as Strategic Infrastructure

One of the most notable aspects of the proposed rules is the formal recognition of data centres as infrastructures of strategic national interest. Given their role as major consumers of electricity and foundational components of digital economies, this designation elevates the regulatory priority of data centre projects and signals the government’s intent to coordinate their development more effectively. 

Unified and Simplified Authorisation Procedure

Up to now, data centres in Italy has been facing fragmented permitting processes involving multiple authorities, often resulting in long lead times and regulatory uncertainty. Under the new expected rules:

• Construction and expansion of data centres will require a “single authorisation procedure”. This will replace a series of separate permits with a unified process conducted through a conference of services, combining environmental, technical and connection approvals into one coordinated review.
• The procedure will cover connection networks at any voltage level, including both medium- and high-voltage infrastructure.
• Clear deadlines will be introduced: the competent authority will have to complete the authorization review within 10 months of receiving complete documentation, with only limited extensions permitted in exceptional circumstances. 

In practice, these procedural reforms aim to reduce regulatory delays, enhancing Italy’s competitiveness in attracting both domestic and international data centre investment. 

Division of Competence by Size

The new rules will also distinguish which authority issues approvals based on the size of the data centre:

• Regional or provincial authorities will typically handle authorizations for smaller facilities (up to roughly 300 MW of capacity).
• Larger projects above this threshold will fall under the direct authorization of the Ministry of the Environment and Energy Security (MASE). 

This tiered approach aims to balance local oversight for smaller installations with centralised coordination for major hyperscale projects. 

However, despite the introduction of a unified national framework, one of the main challenges remains the potential fragmentation of regulatory implementation across different regions and municipalities. While the Energy Decree establishes overarching principles and procedures, local authorities retain significant discretion in areas such as land-use planning, landscape protection, and building regulations. This can result in varying timelines, requirements, and interpretations depending on the specific territory, potentially creating uncertainty for investors and operators. Addressing these disparities will be crucial to ensuring the effectiveness and predictability of the new permitting regime nationwide.

Streamlining Environmental Impact Assessments

Environmental permitting has historically been one of the most time-consuming elements of large infrastructure projects. Under the Energy Decree:

• For qualifying data centre projects, environmental impact assessment (EIA) deadlines are reduced by half, shortening assessment periods while maintaining essential environmental safeguards.
• In specific cases (especially for smaller facilities), the EIA requirement may be eliminated entirely, further simplifying the project timetable. 

This reform will respond to industry concerns about bureaucratic bottlenecks, while still embedding environmental considerations into the permitting process. 

It is also important to highlight that the new regulatory framework will be closely coordinated with the Guidelines issued by the Ministry of the Environment and Energy Security (MASE) for the Environmental Impact Assessment (EIA) of data centers, adopted in August 2024. These guidelines provide detailed instructions on project design, health and socio-economic considerations, landscape integration, and environmental monitoring. By aligning the permitting process with these standards, the decree aims to streamline environmental reviews while maintaining robust safeguards, ensuring that data center development proceeds in a sustainable and responsible manner.

Categorisation of Data Centre Types

To provide clarity and consistency, the new rules will differentiate data centres by function and installed capacity. Typical classifications include:

• Hyperscale data centres — with capacity exceeding 100 MW, serving global or continental cloud and large-scale computing needs.
• Medium to large facilities — between 2 MW and 9 MW, often serving enterprise or regional cloud operations.
• Edge data centres — smaller installations (typically 0.4 MW to 1.8 MW) positioned closer to end users to support low-latency services. 

This taxonomy will help authorities tailor regulatory expectations and permits based on the size and role of each project.

Policy Implications and Outlook

The need of specific rules reflects Italy’s effort to address a rapidly growing digital sector without compromising grid stability or environmental goals. Historically, operators and industry bodies have called for clearer, faster permitting regimes to unlock investment potential, especially in regions like Lombardy where demand for data centre capacity has surged. 

By mandating predictable timelines, streamlining environmental reviews, and designating lead authorities, the new rules will seek to reduce regulatory uncertainty, a key barrier identified by investors. At the same time, the new framework will remain grounded in environmental and planning safeguards, attempting to marry growth with sustainability. 

As implementation proceeds, further guidance and secondary regulations will be needed to operationalise these reforms, especially on technical standards, grid integration rules and reporting requirements. These follow-on measures will ultimately determine how effectively the new regime supports Italy’s ambitions in digital infrastructure and energy transition.

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