A2A, Italy's data center investment company, has increased its investment plan by $27 billion.

A2A, an Italian multi-utility company, announced on Wednesday that it has increased its projected total investments for 2024-2035 from 23 billion euros to 27 billion dollars. 1.6 billion euro of this amount is earmarked to create and manage data centres.

The updated business plan, which will be presented later to analysts, increases projected investments by 1 billion euro and raises financial targets in part three of the strategy.

A2A has also confirmed a minimum dividend growth rate of 4%.

At 0840 GMT the shares of A2A fell 6%, while Milan’s blue-chip index grew. Traders attributed the decline to overly conservative financial forecasts for next year.

A2A's stock price has increased by 14% over the past 30 days.

A PRIVILEGED Position to Support Data Centres

The northern region of Italy, Lombardy, includes the financial capital Milan, as well as the industrial city Brescia. A2A believes that new digital infrastructures will increase electricity demand, network connectivity, and thermal management requirements.

A2A CEO Renato mazzoncini stated in a press release that "A2A’s long-standing existence in Lombardy, together with the acquisition of significant electricity networks in provinces of Milan & Brescia put the group into a privileged situation to actively support roll-outs of data centres".

Mazzoncini, who spoke last month, said that data centres in Milan will add two gigawatts to their capacity within the next five-year period, which is a tenfold rise from what they are currently doing.

Separately, A2A, a company that specializes in energy and waste disposal in Italy, reported an 8% drop in its core profit for the nine months to 1,73 billion euros ($2billion), due to a lower hydroelectric output. ($1 = 0.8575 euro) (Reporting and editing by Gavin Jones, Alexander Smith and Francesca Landini)

(source: Reuters)