DigitEconomy.24

“Data centres require energy planning; it is short-sighted to rule out SRMs”

An interview with Undersecretary Alessio Butti. A data centre, he says, is not measured solely in square metres or servers, but in available megawatts.

Alessio Butti, sottosegretario alla Presidenza del Consiglio

4' min read

Translated by AI
Versione italiana

4' min read

Translated by AI
Versione italiana

Italia has the advantage of its geographical location to position itself as a European hub for data centres and supercomputing, but the real sticking point is the energy required to power them. And on this front, ‘dedicated planning’ is needed. This is according to Alessio Butti, Under-Secretary to the Prime Minister’s Office with responsibility for Technological Innovation, in an interview with DigitEconomy.24, in collaboration with Digit’Ed, a group active in training and digital learning. Undersecretary Butti is working very closely with the Minister for the Environment and Energy Security, Gilberto Pichetto, to find a solution. Part of this could involve SMRs – small modular nuclear reactors. Resolving this issue is, moreover, essential given the strategic importance of these assets.

“Data centres,” says Butti, “are an essential part of digital sovereignty and national security. Whoever controls data and critical infrastructure controls an increasing share of decision-making processes within the economy and the state. This is why Italy must set its sights high. We have a number of objective advantages, such as our geographical position in the Mediterranean and our undersea cable networks. The Digital Decade Report acknowledges that Italia is above the EU average in terms of 5G, fibre, digital services, cloud computing and data usage, and also recognises Italia’s leading role in AI governance. The point, however, is not simply to host other countries’ infrastructure, but to develop national and European capabilities. This is the rationale behind the launch of major initiatives such as Q-ARCA, in collaboration with the Ministry of Defence: a national HPC, AI and quantum computing platform, under public governance, open to research and industry, capable of supporting strategic applications in healthcare, energy and defence. We must give the development of data centres a national strategic framework.’

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Undersecretary, the Milan area is currently seeing the fastest growth in data centres – is there a risk of other geographical areas being left out?

Milan is currently the most dynamic market because it brings together demand, businesses and connectivity. Liguria also has a strong potential in this area. But we cannot build a digital country at a single pace.

The South, and Sicily in particular, has some very interesting characteristics: its location in the Mediterranean, its submarine cables, its proximity to digital data flows between Europe, Africa and the Middle East, and the availability of land and energy potential. Palermo and Sicily could become a key component of a decentralised national strategy.

The aim is to develop a model capable of attracting investment from north to south and of enhancing the country’s resilience, redundancy and operational continuity.

Data centres consume a lot of energy, and energy is expensive in Italia. What solutions are you looking into to address this huge energy demand?

Energy is the key issue. A data centre is not assessed solely in terms of square metres or servers, but in terms of available, continuous, reliable and competitively priced megawatts. It is clear that dedicated energy planning is required.

With Minister Pichetto, the matter is very much under discussion and we are working in very close collaboration. We are working on several fronts: streamlining the authorisation process, renewables, energy storage, heat recovery, energy efficiency and, looking ahead, new stable energy sources.

In this context, SMRs (small modular reactors) could be part of the solution. The prospect of this type of nuclear power requires rigour in technical, regulatory and industrial terms, but it would be short-sighted to exclude it from the debate.

The proposed European ‘Cloud and AI Development Act’ regulation aims to triple the capacity of EU data centres and provides incentives for ‘buying European’. However, from the perspective of US Big Tech companies, these rules could be seen as industrial protectionism. How can a balance be struck?

The European approach is understandable: without the cloud, data centres and computing power, there can be no strategic autonomy in artificial intelligence.

The key is balance. Europe must not close itself off to foreign investment, because we also need investment from major international players. But neither can we be entirely dependent on non-European infrastructure, technologies and jurisdictions for public data, healthcare, defence, energy or critical services.

So I would not speak of protectionism, but rather of selective and proportionate sovereignty. For ordinary services, the market must remain open and competitive. For strategic assets, it is right to introduce stricter criteria regarding security, localisation, control, interoperability and operational continuity. The Commission is also considering sovereignty criteria for the most sensitive public procurement contracts, precisely to reduce critical dependencies.

With a focus on the cloud, linked to data centre infrastructure, the National Strategic Hub will in all likelihood become majority-owned by Poste Italiane (provided Poste’s takeover bid for TIM – which currently controls 45 per cent of the Hub – goes through, and should Poste acquire the 20 per cent stake held by CDP Equity). Do you expect any benefits?

The PSN was established to fulfil a very specific purpose, namely to provide the public administration with cloud infrastructure that is secure, reliable and consistent with the national interest. It is a decision we have always linked to cybersecurity, data protection and digital sovereignty. The PSN is also highly regarded by other European countries precisely because it combines innovation and security. And it is no coincidence that Italia has spearheaded the creation of an EDIC (European Digital Infrastructure Consortium, ed.) on this issue, for which we have been appointed executive vice-chair.

Should the ownership structure evolve towards a greater stake held by Poste Italiane, this could bring benefits in terms of long-term industrial capacity and integration with the public digital ecosystem, given Poste Italiane’s extensive nationwide reach.

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