QTS Data Centers, an American company owned by Blackstone, is preparing a new data center campus in Vimercate, about 16 miles north of Milan. The project, still in the evaluation phase, plans to convert the former IBM industrial site into a complex of three buildings with a total capacity of approximately 220 MW and an investment that could reach €2.3 billion.
This operation well summarizes the current state of the data center market. The demand for infrastructure for AI, cloud, and enterprise workloads is pushing major operators to seek land, energy, and connectivity in new locations, also outside the more saturated European markets. Milan, with its industrial position in northern Italy and its connection to the rest of Europe, is increasingly emerging as an interesting node for large-scale projects.
The Vimercate case also carries symbolic significance. The land was part of an IBM campus since the 1960s, dedicated for decades to technological and industrial activity. According to Data Center Dynamics, IBM manufactured computer systems there until the plant was sold to Celestica Italy in 2000. The complex gradually closed, and the last offices associated with that era disappeared around 2014.
From the old IBM campus to an AI and cloud complex
QTS’s project would develop over an area of about 277,800 square meters, nearly three million square feet. The company has it listed as “under consideration,” meaning it is in the study or planning phase, and the proposal is pending environmental approval from Italy’s Ministry of Environment.
Italian local press has detailed that QTS Italy submitted the plan to the community in Vimercate on 06/24/2026, and that the process included a period for public comments and review of environmental documentation. Il Cittadino di Monza e Brianza also estimates the electrical capacity at 220 MW and mentions a design with three buildings over nearly 280,000 square meters.
The real estate investor Kryalos, in which Blackstone has a stake, is also linked to the project. Such structures are common in the sector: large campuses require land, permits, energy agreements, civil works, financing, specialized construction, and an operator capable of attracting hyperscale clients. Technological aspects are essential, but real estate and energy development weigh as much as the servers.
QTS is not entering Europe from scratch. The company already operates or develops assets in markets like the Netherlands, Finland, Spain, and the UK, according to local Italian press sources. Entering the Milan area would strengthen its presence in Southern Europe, a region where cloud demand is growing but access to energy, land, and permits is beginning to dictate project pacing.
Energy, water, and local acceptance
A 220 MW campus is no ordinary tech building. It is a large industrial infrastructure with high electricity consumption, impacting grids, land use, permits, employment, local taxes, and public perception. For this reason, projects of this size tend to generate both interest and questions.
Il Cittadino reports that the plan includes a new Terna power station to manage the site’s energy needs and mentions 133 emergency generators. It also notes that QTS promotes sustainability goals, environmental impact reduction, the use of clean energy, and cooling systems with less strain on water resources.
This point will become increasingly relevant. Data centers have become essential infrastructure for the digital economy, but their growth sparks local debates over water, energy, noise, land use, economic return, and real employment. AI has accelerated demand, but also made the physical costs of the cloud more visible.
QTS withdrawing from the Prince William Digital Gateway project in Virginia after years of opposition and litigation highlights the importance of social license. The Financial Times reported this week that QTS canceled that plan in northern Virginia amid protests over its proximity to a historic battlefield and growing local rejection of large data centers.
This contrast helps us understand QTS’s expansion. The company canceled a contentious project in Virginia but has not slowed down its activity. On the contrary, it is involved in new developments in Italy, Alabama, Iowa, Texas, and South Carolina. The demand remains, but operators are learning that each location requires its own negotiations with territory, authorities, and communities.
QTS also accelerates in the United States
While expanding in Europe, QTS maintains a very active agenda in the US. The company has been identified as the operator behind Project Marvel, a large campus planned in Bessemer, Alabama, which could reach up to 1.2 GW across 18 buildings after a land expansion to about 1,600 acres.
Bessemer is in Jefferson County, near Birmingham, one of the Alabama regions where data center development is gaining momentum. Project Marvel’s size places it on a different scale: no longer a regional campus, but an infrastructure platform designed for massive cloud and AI demands.
QTS is also exploring a potential project in Clinton, Iowa. According to DCD, the company explained that this plan is in its early stages and would use a closed-loop cooling system to reduce water consumption. They also indicated that they would assume the energy infrastructure costs without impact to existing Alliant Energy customers if the development proceeds.
In Texas, QTS lists plans in Howard County, on land outside Big Spring, though few public details are available. This combination of locations shows how major operators are targeting markets with available land, grid capacity, and political margins for large campus developments.
QTS also achieved a milestone in York County, South Carolina. Builder Gilbane completed the steel structure of the first campus building, announced in 2023 on approximately 400 acres, with up to nine buildings planned in three phases. Construction Owners also reports that the campus will incorporate closed-loop cooling to reduce potable water use and that construction is ongoing.
QTS’s expansion reflects the sector’s new scale
The pattern is clear: QTS is building capacity in multiple directions simultaneously. Europe opens new markets for cloud and digital services; the US concentrates much of the hyperscale and AI demand; and well-funded operators are seeking land and energy before the bottleneck becomes even tighter.
Blackstone acquired QTS in 2021, and since then, the operator has become a key part of private capital’s push into digital infrastructure. The financial logic is straightforward: if AI and cloud continue to grow, data centers increasingly resemble basic infrastructure. But the actual deployment is far more complex. Permissions, power agreements, water and cooling infrastructure, equipment, specialized construction, and local acceptance all matter.
The future Vimercate campus fits into this race but also represents a transformation of old European industrial zones. Repurposing land from historic technological complexes for digital infrastructure makes narrative and urban planning sense, even though environmental and energy challenges remain.
For Italy, a 220 MW campus near Milan could reinforce its position as a data center market in southern Europe. For QTS, it would be another piece of its international expansion. For the local community, the debate will be more concrete: jobs, investment, electricity consumption, environmental impact, industrial landscape, and tangible benefits for the region.
The cloud is no longer an abstraction. It has substation infrastructure, generators, cooling towers, energy agreements, and neighbors. QTS’s expansion makes it clear: digital infrastructure is growing fast, but each new campus must demonstrate its ability to integrate into its local environment.
Frequently Asked Questions
What is QTS planning near Milan?
A data center campus in Vimercate featuring three buildings with a total capacity of about 220 MW.
Where would the project be built?
On the former IBM industrial site in Vimercate, a tech and industrial area with a history in Italy’s IT sector.
How much might QTS invest in Vimercate?
Published information suggests up to €2.3 billion, though the project remains in the evaluation and permitting stages.
What other projects does QTS have ongoing or planned?
The company is linked to developments in Bessemer, Alabama; Clinton, Iowa; Howard County, Texas; and York County, South Carolina.
Why do these large data centers generate debate?
Because of their energy consumption, land needs, impact on local infrastructure, water usage, noise, actual employment, and community relationships.
via: datacenterdynamics
