Rising in the Intelligent Age: Milan’s Tech Revolution

Every day, we interact with digital technologies that simplify and enrich our lives-helping us work more efficiently, learn faster and shop smarter. And it's not just consumer digital experiences that have changed our world. Advancements in high-speed connectivity, AI and the Internet of Things (IoT) have led to groundbreaking innovation in every industry, from manufacturing to healthcare to transportation.

Much of the technology that has transformed our world feels invisible and intangible. But behind the scenes, physical IT infrastructure and human talent have been essential elements of the digital revolution. All the cutting-edge technologies that define the digital era require foundational IT infrastructure and technical know-how.

We're taking a closer look at some of the places where technology and people have come together to power the intelligent age. Milan, Italy's economic hub, is one such place. Traditionally known for fashion, arts and culture, manufacturing and design, Milan has become central to the Italian economy, the home of a burgeoning startup culture, and Italy's connection to the rest of Europe and the world. As digitalization continues to take the world by force, Italy is investing in the growth of its digital economy and attracting global leaders in banking, telecommunications, luxury goods and much more to Milan, where they can innovate, collaborate and grow.

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Milan: The economic powerhouse of Italy

Italy has the third largest economy in Europe and eighth largest in the world. Milan serves a critical role in this economy as the home of the country's main stock exchange, Borsa Italiana. It's also a key link to Europe's primary stock exchange, Euronext, as well as to the largest exchanges in Frankfurt, Zurich and London. This makes Milan a natural hub for traders, companies, financial services applications, and the growing fintech community in Italy. The city's geographic position in the north of the country also makes it a strategic location where businesses can easily connect to other European markets.

Twenty-eight of the Forbes Global 2000 companies are headquartered in Italy, many of which are based in Milan. The list includes several banks as well as oil and gas, telecommunications and luxury goods businesses. Thousands of startups have originated in Milan, and countless regional and global enterprises have a presence in the Milan area.

Investing in the digital economy

As with other parts of the world, digital transformation has been underway for businesses and municipalities in Italy for many years. As the nation's digital economy grows, the government has made significant investments to accelerate the adoption of emerging technologies and improve the country's digital capabilities and global competitiveness.[1] This includes investing in ultra-broadband and 5G connectivity, AI research and adoption, workforce upskilling, public use of digital services and more.

Nearly a decade ago, Milan adopted a formal "Digital Transformation Plan" to streamline government processes and improve citizens' quality of life, as well as the sustainability of the city.[2] Among its many initiatives, the city expanded ultra-broadband and 5G connectivity; leveraged IoT sensors to collect data about traffic, security, energy use and more; and began efforts to bridge the gender gap in STEM education. As its digital economy flourishes, Milan has seen significant growth in the information and communications technology (ICT) industry, including the cloud and data center markets.

Milan now sits at the heart of technology innovation in Italy. As digitalization efforts expand, technology companies and data centers have exciting opportunities, not only to be part of that transformation but to capitalize on it.

Milan's thriving startup ecosystem

Amidst Italy's digitalization efforts, Milan has emerged as a tech innovation hub. The city's startup ecosystem has seen 15-fold growth in the last decade.[3]

Leading areas of startup investment include:

• Payment solutions startups like Scalapay and Satispay
• Healthcare and life sciences startups in biotechnology and molecular genetics, such as Geneta Science, InnovHeart and Genespire
• AI and machine learning across several industries
• Renewable energy and sustainability solutions like Up2You and Chiron Energy

Milan's AI ecosystem, in particular, is advancing quickly. Neuronova, for instance, is developing AI chips that deliver higher performance with lower energy consumption. Indigo.ai provides conversational AI-based virtual assistants to help companies evolve their customer experience. Lexroom.ai focuses on AI-driven legal research to save lawyers time. These are just a few of many examples. Italy's AI market also includes companies advancing innovation in liquid cooling and air cooling that enable data centers to support next-generation workloads.

IT talent development in Milan

As Milan's IT ecosystem and startup community grow, the city has become a central hub for talent development for Italy. Milan is home to several universities that offer advanced training in STEM fields, such as:

• Polytechnic University of Milan (Politecnico di Milano), the largest Italian scientific-technological university
• Bocconi University, known for strong programs in business and technology, including degrees focused on AI, data science and cyber risk strategy
• The University of Milan, which offers training in AI, computer science, network security and much more

These institutions of higher learning are contributing to talent development not only for the IT industry but for technical roles across sectors. Students trained in Milan go on to contribute to innovation and digital growth in Italy and across Europe.

The role of data centers in Milan's technology landscape

Given the growth of the digital economy, startup investments and skilled labor force in Milan, it should be no surprise that the city is a major market for data center investment. Major clouds and service providers, as well as global enterprises, are eager to have a presence in the Milan area. The city holds a significant share of Italy's existing data center capacity today, and a whopping 98% of upcoming capacity in Italy is expected to be concentrated in Milan.[4]

Data centers provide foundational infrastructure to support digital transformation, innovation and business growth. A skilled workforce is needed to design, build and operate facilities that can tackle AI and other data-intensive workloads. The Italian Datacenter Association is working hard to build a strong and efficient data center industry in Milan that will support the needs of the digital economy in an increasingly data-driven future.

Equinix currently operates four data centers in Milan and is continuing to heavily invest in building capacity around greater Milan to support a diverse range of companies. Our high-performance data centers provide a neutral meeting place for global enterprises and local startups to join with major clouds and SaaS providers, network service providers and other business partners to exchange value. We actively source talent from Milan's universities and technical schools, because cutting-edge technology infrastructure requires a highly skilled workforce.

As the world progresses into the intelligent age, Milan will no doubt be at the heart of innovation for Italy, Europe and the world.

Visit our website today to learn more about Equinix high-performance data centers.

[1] Italy Country Commercial Guide: Digital Economy, International Trade Administration, September 20, 2024.

[2] Milano Digital Transformation, Yes Milano.

[3] Milan Ecosystem Report 2024: A Rising Tech Powerhouse in Europe, Startup Reporter, December 29, 2024.

[4] Italy Existing & Upcoming Colocation Data Center Portfolio Report 2024: Detailed Analysis of 48 Existing Data Centers and 12 Upcoming Data Centers - 98% of the Upcoming Capacity is in Milan, GlobeNewswire, July 15, 2024.