Italy IaaS Market Size and Forecast by Offering, Deployment Model, Organization Size, Subscription Model, and End User Industry: 2019-2033

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Industry Assessment Overview

Industry Findings: Market direction in Italy is increasingly shaped by the country’s rising demand for AI-ready compute and sovereign-aligned cloud services (Nov-2023). Italian enterprises have begun prioritizing providers capable of offering both localized latency and compliance-grade hosting. A clear example is the acceleration of regional datacenter investments in Milan’s hyperscale corridor, which has become a strategic focal point for regulated workloads and hybrid architectures.

Industry Progression: Momentum strengthened after Amazon Web Services confirmed new infrastructure expansions linked to its Milan region, with updated capacity enhancements observed in Mar-2024. These upgrades—supporting higher throughput and AI workloads—reduce bottlenecks for Italian enterprises adopting data-intensive applications. The expansion shifts competitive dynamics, compelling local carriers and cloud integrators to improve interconnect quality and multi-zone redundancy.

Industry Player Insights: Among many players, Italy’s competitive footprint is shaped by Microsoft Azure, Amazon Web Services, Aruba Cloud, and Sparkle. Aruba Cloud’s Jan-2024 expansion of its Rome datacenter introduced new energy-efficient halls and boosted compute density, strengthening Italy’s hybrid-cloud posture and giving domestic enterprises more sovereign-compliant hosting options.