Khazna and Eni to Build 500 MW AI Data Center Near Milan

Khazna and Eni to Jointly Develop 500 MW AI Data Center Campus in Lombardy, Strengthening UAE-Italy Tech-Energy Alliance

Khazna Data Centers, a leading global provider of hyperscale digital infrastructure, has signed a landmark Heads of Terms (HoT) agreement with Eni, Italy’s integrated energy giant, to establish a Joint Venture for the development of a state-of-the-art AI Data Center Campus in Ferrera Erbognone, located in the Lombardy region of northern Italy. The proposed data campus, set to deliver a total IT capacity of 500 megawatts (MW), will become one of the most significant hyperscale digital infrastructure investments in continental Europe.

This development represents a major milestone in a broader strategic collaboration launched in February 2025 between Italy and the United Arab Emirates, aiming to catalyze digital transformation and energy cooperation. The bilateral initiative seeks to create a robust digital infrastructure foundation across Italy, with an overall targeted IT capacity of up to 1 gigawatt (GW). The AI Data Center Campus in Lombardy will serve as the flagship of this broader vision, marrying sustainable energy generation with next-generation computing power, particularly focused on enabling artificial intelligence applications at scale.

A Shared Vision for AI, Energy, and Digital Sovereignty

The Heads of Terms agreement outlines the formation of a Joint Venture between Khazna and Eni, detailing the preliminary roles, responsibilities, and governance frameworks for the partnership. It also formalizes both parties’ commitment to accelerate development activities. The joint initiative is based on a shared vision of creating high-performance, energy-efficient infrastructure that will play a vital role in shaping Europe’s digital future.

The AI Data Center Campus will be engineered with a scalable design philosophy, incorporating high-performance computing (HPC) capabilities, next-generation network architecture, and robust physical and cybersecurity measures. These facilities are intended to meet the surging demand for AI processing power while ensuring energy efficiency, operational sustainability, and resilience. With Europe increasingly focused on achieving digital sovereignty and reducing reliance on external data infrastructure, the project is poised to serve as a key enabler of that goal.

The project aligns not only with EU strategic interests in AI and digital infrastructure but also supports Italy’s broader objectives for digital growth, industrial innovation, and climate-aligned technological development. As the digital economy expands and generative AI workloads continue to grow, the demand for localized, secure, and sustainable data processing capabilities will only increase. This venture is positioned to deliver precisely that capacity, at the heart of Europe.

Formal Signing with High-Level Government Support

The HoT signing ceremony took place in the presence of high-ranking government officials from both countries, reflecting the importance of the project within the framework of international cooperation. Among those attending were Reem Al Hashimi, UAE Minister of State for International Cooperation, and Adolfo Urso, Italy’s Minister of Enterprises and Made in Italy. Their attendance underscored the political backing and strategic significance of the venture in advancing economic and technological collaboration between the UAE and Italy.

The agreement was signed by Hassan Alnaqbi, CEO of Khazna Data Centers, and Guido Brusco, Chief Operating Officer of Global Natural Resources at Eni. Both executives emphasized the transformative potential of the partnership and its alignment with their respective companies’ strategic goals.

Hassan Alnaqbi, Chief Executive Officer of Khazna Data Centers, stated:

“We’re proud to partner with Eni, a demonstrated energy leader, on this Heads of Terms, which represents a defining step in Khazna’s European expansion. 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.”

Guido Brusco, COO Global Natural Resources at Eni, added:

“Through this partnership, Eni and Khazna are jointly contributing to delivering a world-class hyperscale infrastructure, strategic for Italy and Europe. We are leveraging our distinctive capabilities in innovation, energy sustainability, and rapid time-to-market execution to address a rapidly evolving digital landscape.”

Sustainable Infrastructure with ‘Blue Power’

A distinguishing feature of the proposed AI Data Center Campus will be its integration with sustainable energy solutions, marking a new benchmark for low-carbon digital infrastructure in Europe. The entire campus will be powered by “Blue Power,” a proprietary form of low-carbon electricity generated by Eni using a newly designed high-efficiency gas-fired power plant with integrated carbon capture technologies. This advanced facility will ensure that energy-intensive AI processing needs can be met without compromising Italy’s decarbonization goals.

The synergy between sustainable power generation and digital infrastructure design is central to the value proposition of the joint venture. By utilizing decarbonized energy and applying energy-efficient cooling and infrastructure strategies, the project aims to minimize its environmental footprint while maintaining optimal performance.

This model aligns with global trends in responsible computing, where data center operators are being held increasingly accountable for their energy use and emissions. Moreover, it positions Italy as a pioneer in the fusion of digital transformation with clean energy innovation—a critical intersection as both sectors evolve in response to climate and technological imperatives.

Strategic Significance for Europe’s Digital Landscape

The planned 500 MW capacity will make the Ferrera Erbognone facility one of the largest AI-focused data centers in Europe. This development is expected to create a ripple effect across the region’s digital and industrial ecosystems by attracting hyperscale cloud providers, enterprise AI users, and data-driven industries seeking low-latency, high-compute infrastructure.

From training complex AI models to enabling real-time analytics for financial services, health diagnostics, autonomous vehicles, and industrial automation, the facility is expected to serve as a central hub for innovation. Additionally, the investment is likely to generate significant employment opportunities during both the construction and operational phases, along with indirect economic benefits for Lombardy and neighboring regions.

Beyond its regional implications, the project marks Khazna’s formal entry into the European market. Known for operating one of the largest networks of hyperscale data centers in the Middle East and North Africa (MENA) region, Khazna brings extensive experience in building and managing mission-critical facilities at scale. The company has rapidly grown its portfolio to meet the exponential demand for cloud and AI services in recent years.

For Eni, the partnership expands its role as not just a traditional energy provider but a critical enabler of digital transformation. The company has been actively diversifying into new energy technologies, carbon capture, and industrial innovation, making the AI Data Center Campus a natural extension of its transition strategy.

A Blueprint for the Future

As Europe continues to deepen its investments in AI, quantum computing, and digital twin technologies, projects like the Eni-Khazna Data Center Campus offer a replicable blueprint for future development. The model—based on strategic public-private partnerships, cross-sector collaboration, and green power integration—offers an attractive path forward for governments and companies seeking to balance digital ambitions with climate responsibilities.

In addition, the bilateral nature of the project underscores how cross-border cooperation can accelerate infrastructure readiness, technological innovation, and geopolitical alignment in critical areas. With the UAE and Italy jointly pursuing a digital and energy partnership of this scale, other countries may follow suit, seeking similar collaborations to bolster their positions in the AI-driven global economy.

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