Today was quite interesting in Milan’s data center industry, as there were talks about a second data center in Milan. The new center will make a distribution of 54MW IT capacity with an area of 18,000 square meters to be built within three floors and located almost in the middle of Milan and Segrate.
It is said that the new data center is a result of the purchase of the former 20 acres site that is about 4 miles to the east of Milan city center, that is near Linate Airport. The purchase is a part of the company’s major investments in Italy’s digital infrastructure to provide for the increasing demand for enterprise cloud and AI workloads.
In planning the project, the aspect of community integration was put at the top of the agenda; hence, it was decided to give back approximately 30% of the site to the local government for public use.
In the endeavor to make a significant contribution to the local area, the developers are consulting with local authorities to agree on landscaping that is in full harmony with the environment and the locals and to cover the noise problems of the new facility by placing noise barriers.
The building of the data center is being done with sustainability as the fundamental principle such that it is the aim to ensure the BREEAM ‘Very Good’ certification at least. The continuity of the building’s functions is, however, therefore sustainable as it will run on 100% renewable energy, and 500 square meters of solar panels together with other renewable energy sources will provide power for the black areas, demonstrating that the company is responsible.
In other news relating to the automotive sector, a well-known carmaker has settled an agreement with trade unions for 350 voluntary workforce reductions from their production plants in southern Italy. The agreement signed affects plants in Pomigliano and Pratola Serra, situated in the Campania region a few kilometers from Naples.
The workforce cut announced recently will affect as many as 250 workers in the assembly site and 50 in the engine manufacturing plant. A representative of the company mentioned that these layoffs will mainly affect the retirement group of employees as considered by the national production strategy and communicated to the Italian government before the meeting.
This case is a representation of a more general order of reorganizations being executed right now in the car industry in Italy. The downsizing of the workforce operations through volunteering is at the base of the strategy to rationalize the operations while managing the industry disruption.
On the other hand, the stock market situation in Milan and the rest of Europe was in a slump today. Milan’s main stock index, the FTSE MIB, finished lower by 0.77% in the face of the general European concern about future developments in most sectors.
There is a marked drift in the banking sector in Italy towards a narrower financial market dominated by fewer banks. A major banking corporation has managed to clear the last barrier, and the company’s offer of €14 billion in shares for its smaller competitor has been given the green light to take off.
share offer documentation has been approved by Consob, the authority overseeing transactions on the stock exchange, such that the offer of this month can proceed as planned. The formal bidding will start on April 28 and finish on June 23, according to the announcement posted by the second-largest bank in Italy.
This bid has just come as one of a number of the main bids that are in the process and are going to make an important impact on the Italian banking sector. The industry is set to register all-time highest profits due to rising interest rates, which have been continuously driving its growth, considering its recovery after a very difficult period between 2008 and 2012.
In sports infrastructure news, it is confirmed that Milan’s two top-flight football clubs remain strongly committed to their ambitious San Siro project that envisions the construction of a new modern football stadium. Clubs’ owners, though having different investments, still have a united vision of making the teams to the next level.
Leaders of the clubs through recent statements have disclosed that building the new stadium will start in 2027. It is a good sign for Milan’s sports infrastructure since it shows not only a huge investment but also confidence in the city’s future as a place for global sports.
The Italian business sector extends its appeal to international investors on many fronts, such as digital infrastructure, manufacturing, and sports. These instances are a clear indication that Milan is not only significant in Italy’s economic system but also plays a big role in the markets of the whole European Union.
Economic data released was a little down which is questionable for the economic future of Italy as the EUR/USD was gearing down to 1.079. The commodity market was calm almost without any changes, indecisive gold was still priced at $3,116.3/ounce, and crude oil was plunged by 0.43% of the morning price.
The gap of 102 basis points in the yield of Italian government bonds relative to Germany’s 10-year bunds was narrowed to +102 basis points, while the Italian BTP 10-year yield was standing at +3.73%. It appears that everything is under control, as no major fluctuations are currently observed in Italy’s bond market, amidst the prevailing market volatility.
Noticeable market-impacting macroeconomic data are expected in the next few days. The numbers that investors are eagerly waiting for will include employment data, factory orders, and various purchasing manager indices from the USA and the United Kingdom that should provide a clearer indication of the current economic direction.
Tech, finance, and infrastructure sectors are the main areas of Milan’s business industry. Quite important changes have taken place in these industries recently. Those investments are the region’s way of saying the economic side is definitely looking up despite the nearly impossible world conditions.
The position of the city as the door to the EU market has not been jeopardized by the recurring diverse investment. Consequently, the city remains a significant and strategic business hub. The creation of new jobs and the region’s development are the potential results should these plans be realized.