Microsoft’s investment in Italy is designed to help the country seize the opportunities of artificial intelligence and accelerate its digital transformation. Building on the launch of the Italy North cloud region, Microsoft is now expanding that footprint with an additional datacenter, reinforcing its commitment to delivering secure, high-performance cloud services and supporting innovation across key sectors of the Italian economy.

Microsoft is building a datacenter in San Bovio in the municipality of Peschiera Borromeo, in the greater Milan area, to support the growing demand for reliable digital services that enable businesses, public services, and communities to thrive. Datacenters are essential infrastructure that help power cloud computing, digital innovation, and economic growth.

Project update July 2026

In June 2026, the decision-making Services Conference, which involved all the competent bodies, was concluded with a favorable outcome on the proposed San Bovio project, which provides for the redevelopment of the former Postalmarket, an area left vacant for over 15 years.

The authorization process was launched in August 2023 and developed in dialogue with the Municipality of Peschiera Borromeo and the competent authorities at national, regional, and local levels, following all the legal approval procedures step by step.

In March 2024, at the national level, the Ministry of the Environment and Energy Security issued a favorable opinion as part of the Environmental Impact Assessment procedure. The authorization process then continued with the competent authorities at regional and local levels who thoroughly assessed the environmental, landscape, and health protection aspects related to the project, and concluded the related process during 2026 with a favorable outcome following the adoption and approval of the zoning plan with the Municipality of Peschiera Borromeo in 2025 and the related urban planning agreement. Also, a public meeting to present and discuss the project with the local community was organized by the Municipality in October 2024. With all approvals now in place, initial construction works are planned to begin in September 2026.

For those who wish to learn more, public technical documentation is available on the portal of the Ministry of the Environment and Energy Security dedicated to the project.

The latest community presentation is also available here: Datacenter Microsoft San Bovio – Aggiornamento riqualificazione area ex-Postalmarket​.

Site redevelopment

The project focuses on the redevelopment of the former Postalmarket site, which has been vacant for more than 15 years.

The preparatory activities for the construction of the datacenter included the complete environmental remediation of the site, with the complete removal of materials containing asbestos and soils contaminated by diesel.

Between February and November 2025, the demolition of the former Postalmarket building was completed. During this phase:

• Over 35,000 cubic meters of material were reused directly on site.
• Over 2,500 tons of steel were recycled.
• More than 6,000 tonnes of CO₂ equivalent were saved.

Sustainability and infrastructure

The San Bovio datacenter is being developed on the former Postalmarket site, regenerating previously used industrial land and avoiding new land consumption. The facility will support Microsoft’s goal to match its electricity consumption with renewable energy on an annual basis and will include more than 3,000 square meters of on-site photovoltaic panels, exceeding regulatory requirements. The datacenter will connect directly to the national electricity grid, ensuring resilient operations without relying on the local distribution network.

The facility is being designed to LEED Gold standards and incorporates measures to reduce environmental impact, including light-colored roofs and paving surfaces to help mitigate the urban heat island effect. Water resources will be managed responsibly through the use of non-potable groundwater for cooling, rainwater recovery, and reuse solutions, and efficient irrigation systems designed to reduce water consumption in landscaped areas.

Community investment and local benefits

The project contributes to the environmental and urban redevelopment of the territory also through works and interventions provided for in the agreement with the Municipality. In particular, the following are envisaged:

• 11,600 square meters of urban forestation with about 1,200 new plants, with interventions that are being defined and will be implemented in coordination with the Municipality and on the basis of local needs.
• Maintenance of green areas for five years.
• Transfer of areas to the Municipality for 14,900 square meters.
• Free transfer of the building in via Trieste 24, a former bar, currently in the process of regulatory compliance by Microsoft.
• Contribution of 100,000 euros for the construction of the roundabout access to San Bovio.
• Over 10 million euros in total between urbanization charges, monetization, and compensation works.

Microsoft will continue to collaborate with the territory also through social, environmental, and educational initiatives for the community of Peschiera Borromeo, involving the local associations of San Bovio and the territory.

Initiatives already available include programs for the development of digital and technical skills to work in datacenters developed in collaboration with ITS Angelo Rizzoli as part of the Microsoft Datacenter Academy.

Initiatives with local authorities and local organizations are also planned, including through the Microsoft Lombardia Community Challenge managed by ChangeX. Among the projects awarded funding by the Microsoft Lombardia Community Challenge is also the project “Learning outside, together,” dedicated to outdoor education for the school of San Bovio and promoted by the Eureka Social Cooperative.

Design and neighborhood integration

The project was defined taking into account the characteristics of the territory, thanks to the discussion with the Municipality and the local community. To reduce the impact of the intervention and encourage its inclusion in the neighborhood, several measures are planned, including:

• Increase in green areas and the insertion of new trees and shaded areas.
• Architectural and building design solutions designed to be integrated into the landscape and mitigate the visual impact.
• Cycle paths and new redeveloped public spaces.
• Monitoring of air, water, noise, and emissions, which will be periodically shared with the Municipality.
• Systems to reduce noise and emissions and to mitigate the urban heat islands effect, including through light roofs and floors.

As part of the design process, a dedicated acoustic assessment was carried out to evaluate the potential noise impact of the datacenter on the surrounding area, considering 13 representative receptors located nearby.

The modelling indicates the additional noise contribution attributable to the datacenter at nearby residential receptors. During the daytime, the estimated increase ranges between 0.1 and 0.6 dB, with an average increase of 0.3 dB, a variation that is generally considered imperceptible to the human ear. During nighttime period, the predicted increase ranges between 0.5 and 2.8 dB, with an average of approximately 1.4 dB.

These values are well within the differential limits set by Italian regulations, which are 5 dB during daytime and 3 dB during nighttime. The project includes design measures and operational controls designed to ensure that the facility’s operations remain compatible with the local context and consistent with the protection of the surrounding acoustic environment.

Next steps

The construction site has already been started on some preliminary activities. The next steps include the complete mobilization of the construction site by the end of 2026, the start of excavations and major work between 2026 and 2027, and the progressive construction of the datacenter and electrical substation.

Staying connected

We are committed to open and transparent communication throughout construction.

• Follow updates on the Microsoft in your community blog
• Visit the Italy community page