Italian council sets 200% tax on data center development in agricultural zones — aims to spur the use of old industrial areas instead and limit environmental impact

Source: Tom’s Hardware

The region of Lombardy, Italy—whose capital is Milan—has approved a 100 % tax on data‑center developments in rural areas and a 200 % tax for projects located in agricultural and green zones. According to the Italian news outlet Il Sole 24 Ore, the law aims to discourage hyperscalers from acquiring large tracts of countryside for data‑center projects that are often pursued “without clear timeframes and plans.”

“We cannot, in the light of these numbers, block the development of companies and employment, the race for artificial intelligence is already a fact,” Lombardy councilor Massimo Sertori told the publication. “We can, however, try to keep the phenomenon under control by avoiding excesses and the exaggerated exploitation of the territory.”

Policy Overview

• 100 % tax on data‑center construction in general rural areas.
• 200 % tax on developments in designated agricultural and green zones.
• The higher levy is intended to push developers toward disused industrial zones, which are already suited for such facilities and do not carry additional environmental burdens.

Industry Context

Data‑center developers across Europe have begun targeting rural land because it often offers fewer restrictions, lower costs, and faster permitting.

• An article on Tom’s Hardware discusses how developers are seeking rural locations to bypass city council approvals, rezoning votes, and public scrutiny: AI data‑center developers target rural territory.

• In Texas, a county passed a one‑year moratorium on data‑center construction while studying the potential impact on rural land: Texas county limits AI hyperscalers’ ambitions.

Italian lawmakers hope the Lombardy tax will redirect investment to underused industrial sites, which are already equipped for high‑density computing operations and avoid additional environmental strain.

Energy Concerns

Councilor Sertori highlighted that data‑center power consumption in Italy has reached 30 GW, with more than half of that demand projected for Lombardy. The region plans to authorize only 2 GW of new capacity based on “real and concrete projects.”

• Currently, Milan hosts 33 active data centers, with 10 under construction and 23 awaiting approval, making Lombardy the Italian region with the highest concentration of such facilities.

Public Reaction

While opposition to data‑center siting is more vocal in the United States—70 % of Americans say they do not want a data center near their homes (Tom’s Hardware survey)—Italian authorities are also wary of unchecked expansion.

“In Lombardy, we have tried to fill the void of the Meloni government on industrial policies. The development of data centers is necessary, but it cannot be left to chance or to the market alone; a political vision is needed,” said Democrat Mattero Piloni. “However, this law lacks real and decisive soil protection, because neither the government nor the region have put in place stringent constraints. We will have to wait for a national law.”