Eni & Khazna's 500 MW AI Data Center: A Pioneering Leap in Sustainable Digital Infrastructure

The global race to dominate AI-driven digital infrastructure is intensifying, and Italy is emerging as a strategic hub thanks to a groundbreaking partnership between Eni, Italy's energy giant, and Khazna Data Centers, a UAE-based hyperscale infrastructure leader. Their 500 MW AI Data Center Campus in Ferrera Erbognone, Lombardy, represents a paradigm shift in how nations are aligning energy transition goals with the soaring demand for high-performance computing. This project is not merely a data center—it's a blueprint for sustainable digital transformation, blending scalability, environmental stewardship, and geopolitical collaboration.

The Synergy of “Blue Power” and Hyperscale AI Infrastructure

At the heart of the project is “Blue Power,” a proprietary energy model that combines a high-efficiency Combined Cycle Gas Turbine (CCGT) power plant with carbon capture technology. This ensures the facility operates at near-zero emissions, a first-of-its-kind achievement in Italy. By pairing this low-carbon energy source with purpose-built AI/HPC infrastructure, Eni and Khazna are addressing two critical challenges: the energy-intensive nature of AI workloads and the EU's binding target to cut emissions by 55% by 2030.

The campus is designed to support high-density computing, with modular scalability to meet surging demand for AI, machine learning, and big data analytics. Its Power Usage Effectiveness (PUE) rating—a measure of energy efficiency—will be among the lowest in Europe, thanks to advanced cooling systems and renewable energy integration. For tech giants like Google, Microsoft, or Amazon, which require massive compute power while adhering to ESG mandates, this campus offers a rare combination of performance, cost-efficiency, and sustainability.

Geopolitical Collaboration: UAE-Italy Strategic Ambitions

The project is a cornerstone of the UAE-Italy strategic partnership launched in February 2025, which aims to install 1 GW of IT capacity in Italy by 2030. This collaboration underscores the UAE's shift from fossil fuels to tech-driven growth, while Italy leverages its geographic centrality and regulatory flexibility to become a European AI powerhouse.

The joint venture's governance structure—headed by Khazna CEO Hassan Alnaqbi and Eni COO Guido Brusco—ensures alignment with both nations' priorities. For Italy, it's a step toward digital sovereignty, reducing reliance on foreign cloud providers. For the UAE, it's an investment in Europe's AI ecosystem, positioning Khazna as a go-to partner for hyperscale infrastructure.

The 10 Billion Euro Data Center Boom—and Why This Project is Central to It

The Eni-Khazna campus is part of a larger €10 billion investment surge in Italian data centers by 2026, according to the Data Center Observatory of Milan Polytechnic. This influx reflects Europe's broader €100 billion data center investment target by 2030, driven by AI adoption, cloud migration, and EU sustainability directives.

The 500 MW campus is phase one of a 1 GW master plan, signaling Khazna's confidence in Italy's market. With tech giants already pledging billions to expand in Europe—Microsoft's €4.3 billion cloud investment in Italy and AWS's €1.2 billion in Lombardy—the project's scalability and sustainability make it a magnet for capital.

Investment Opportunities: Riding the AI Infrastructure Wave

For investors, this project offers a multi-pronged opportunity:
1. ESG-Driven Growth: The campus's carbon capture and low PUE align with ESG mandates, attracting institutional investors seeking to reduce carbon footprints while earning returns.
2. Tech Tenant Potential: Anchored by global hyperscalers, the facility could generate stable, long-term revenue streams.
3. Geopolitical Stability: Backed by Italy and the UAE's governments, the project mitigates regulatory and geopolitical risks.

Investors can gain exposure via:
- Eni's stock (ENI): A play on its transition to green energy and infrastructure.
- Data center REITs or ETFs (e.g., QDT): For broader exposure to the sector.
- Direct investment in the joint venture for high-net-worth investors.

Risks and Considerations

• Energy Costs: While Blue Power reduces emissions, gas prices could impact profitability.
• Regulatory Hurdles: EU energy laws, like Germany's 2027 renewables mandate, may increase compliance costs.
• Overcapacity: Europe's FLAP-D markets (Frankfurt, London, etc.) already face congestion, but Ferrera Erbognone's secondary-market positioning avoids this risk.

Conclusion: A Pivotal Moment for AI Infrastructure

Eni and Khazna's campus is more than a data center—it's a model for how nations can harmonize AI growth with climate goals. With Italy's investment boom and EU's digital sovereignty push, this project sits at the intersection of tech, sustainability, and geopolitics, making it a must-watch for investors. For those seeking to capitalize on AI's rise while meeting ESG criteria, this is a strategic entry point into one of the 21st century's defining industries.

As the world's data demands soar, the Ferrera Erbognone campus is poised to be a lighthouse—illuminating the path forward for sustainable digital innovation.