MILAN, Jan 16 (Reuters) - Investments into Italy's data

centres will double to 10 billion euros ($10.3 billion) in the

2025-2026 period compared with the previous two years as

technology heavyweights roll out spending plans, a research hub

of Milan Polytechnic University said on Thursday.

The country however has to tackle potential power grid

bottlenecks and high energy costs to support investments in the

country, the report said, adding that access to cheap power has

emerged as increasingly attractive for large cloud developers.

WHY DOES IT MATTERS

Italy is looking to attract investments from heavyweight

technology firms, which are keen to boost their cloud capacity

to meet growing AI-driven demand.

CONTEXT

Last year Microsoft ( MSFT ) announced a plan to invest 4.3

billion euros in Italy to develop its cloud network there.

Amazon Web Services (AWS) said it would invest 1.2 billion euro

over five years.

KEY QUOTES

"The development of increasingly powerful infrastructures

raises questions about their energy supply and the

sustainability of the Italian electricity grid," said Marina

Natalucci, director of the data centre research hub.

($1 = 0.9718 euros)