Italy Imposes 200% Tax on Data Centers in Agricultural Zones

The Lombardy Regional Council has introduced measures to regulate data center construction, imposing a 100% tax on projects in rural areas and up to 200% in agricultural and green zones. According to officials, the law aims to prevent uncontrolled land acquisitions by hyperscalers, which often proceed without clear timelines or development plans.

As noted by Regional Councilor Massimo Sertori, while supporting technological progress and job creation, authorities seek to avoid over-exploitation of land. Italy has received applications for data centers with a total capacity of up to 30 GW, over half of which are planned for Lombardy. However, officials argue that permits should only be granted for specific and justified projects.

Milan already hosts 33 data centers, with 10 under construction and 23 awaiting approval. Lombardy leads the country in data center concentration. Regional authorities hope the new taxes will redirect investors to abandoned industrial zones, where infrastructure is already adapted for such needs and environmental and administrative barriers are minimal.

The issue of data center construction is gaining traction globally. For instance, in the U.S., 70% of respondents oppose placing such facilities near residential areas. While public resistance in Italy is less pronounced, authorities fear negative impacts on the environment and energy systems. Opposition politicians criticize the law for insufficient land protection, citing the lack of strict national-level restrictions.