Compass Datacenters and Hines, a global real estate firm, have announced plans to build a new data center campus in Milan, Italy.

For this project, Compass and Hines formed a joint venture through which they have just acquired a 2.3 million square foot land in Noviglio, Milan, on which the duo plan to develop a data center campus that will support over 48MW of IT load with construction scheduled to begin in 2023.

“Building our first European campus in Milan is a major step in Compass’ global expansion strategy. It’s geographic location, undersea cable connectivity, robust fiber availability and affordable power makes it an ideal location for hyperscalers. Hines’ vision for Italy align with our own, and our combined resources should accelerate the timeline for customer availability,” said AJ Byers, President and Chief Development Officer at Compass Datacenters.

“This first investment into the Italian and European data center market establishes a new area of development for Hines, representing significant opportunities in a high-growth sector,” said Mario Abbadessa, senior managing director and country head, Italy, at Hines.

“The Italian data center market is becoming a leading destination for cloud providers with growing capacity requirements commonly referred to as hyperscalers, with $2.6 billion projected to be invested by 2026. Milan’s high level of network connectivity and the region’s multiple submarine cable termination points were key elements in both companies’ mutual identification of the Novigilio site as an ideal data center campus location in Milan’s supply-constrained market.”

Also in June, Compass Datacenters announced a new partnership with Foster Fuels to enable the use of Hydrogenated Vegetable Oil-based biodiesel (HVO) to fuel its on-site generators. Based on the partnership, Foster Fuels will serve as Compass Datacenters’ preferred green diesel provider, bolstering both organizations’ commitment to Greenhouse Gas (GHG) reduction. The initial rollout involves supply to Compass’ facilities in Northern Virginia, Arizona and Texas.