Legal development

Data Centres in Italy: the new Regional law of Lombardy

July 20, 2026

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    1. Introduction 

    On 20 June 2026, Lombardy Regional Law No. 11 of 3 June 2026, entitled “Provisions on the siting of data centres” (the “Law”), entered into force1.

    The Lombardy Region recently enacted a Law pursuing the following objectives: 

    • to support productive growth through digitalisation and technological development, encouraging investments in innovation and promoting siting in disused industrial areas;
    • to promote sustainable development, environmental protection, water resource preservation, urban regeneration, reduction of land consumption, and protection of biodiversity and landscape;
    • to ensure energy efficiency and environmental sustainability, promoting carbon-neutral energy sources, heat recovery (district heating), and efficient cooling technologies;
    • to ensure consistency with infrastructure network capacity

    The new Regional Law may serve as a reference model for other Italian Regions implementing the national single procedure under Art. 8 of the Energy Bills Decree, helping to mitigate regulatory fragmentation pending comprehensive national sectoral legislation.

    The main provisions of the Law are summarised below by way of executive summary, and then analysed in detail in the subsequent sections of this alert: 

    Siting priorities and incentives: the Law establishes siting priorities favouring brownfield and disused areas, mandates carbon-neutral energy sources, thermal energy reuse and water-efficient cooling, and provides cumulative incentive measures (reduced procedural timeframes, simplified protocols, priority access to regional funding, reduction of the construction contribution by 10-30%, and reduction of parking areas by 50-75%). An innovative urban planning classification based on connection capacity (> 5 MW: productive designation; ≤ 5 MW: compatible with productive, tertiary and office designations) enables “edge” data centres in consolidated urban areas. Significant disincentives apply to siting on agricultural land (construction contribution increased by 100-200%). 

    Authorisation procedures: a dedicated Regional Data Centre Office acts as single point of contact. The Region is the competent authority for the Integrated Environmental Authorisation (AIA) for data centres between 50 MW and 300 MW2 within the single procedure under DL 21/2026. A mandatory energy report covering on-site renewable maximisation, supply justifications, predictive KPIs and a heat-recovery feasibility study is required. A multi-agency task force will issue technical-administrative guidelines. 

    Supra-municipal relevance: projects with connection capacity > 10 MW are classified as being of supra-municipal relevance and require a consultative concertation conference, leading to a territorial agreement with equalisation and compensatory measures. The conference is convened by the Region for projects > 50 MW or inter-provincial projects. A photovoltaic deduction mechanism allows on-site renewable capacity to reduce the applicable thresholds. 

    Brownfield mapping: municipalities must identify and update disused, contaminated, degraded, unused or underused areas within 365 days; data must be published via the geoportal within 60 days. Municipal non-compliance does not preclude applications for data centre siting. 

    Monitoring: a Permanent Steering Committee performs advisory and impact-assessment functions; interoperability with the European database under Regulation 2024/1364 is ensured. 

    Transitional regime: the new procedures apply from the publication of technical-administrative guidelines (expected within 60 days of entry into force). Pending AIA procedures are concluded by the Metropolitan City/Province. Key Regional Government resolutions must be adopted within 30-60 days. 

    Operational guidance: the power threshold system (5 MW / 10 MW / 50 MW) is determinative for identifying the applicable urban planning and authorisation regime; the energy report is the key compliance document; the photovoltaic deduction mechanism constitutes a structural incentive for on-site renewable integration; early coordination with the grid operator (TSO/DSO) is recommended. 

    2. Siting and energy-environmental priorities and incentive measures 

    Article 2 of the Law establishes the siting priorities and energy-environmental conditions for data centre siting: 

    • siting in areas identified by municipalities as zones in which to initiate urban and territorial regeneration processes (pursuant to Art. 8, paragraph 2, letter e-quinquies, or Art. 8-bis of L.R. 12/2005), in disused areas (including disused or no longer active quarries and mines), contaminated areas (including orphan sites), potentially contaminated, degraded, unused or underused areas (brownfield), taking into account proximity and compatibility with electricity infrastructure, including in order to reduce the territorial impact of new connection works; 
    • use of carbon-neutral energy sources, maximising the technically feasible use of available surfaces; 
    • reuse of cooling thermal energy through district heating, other cascading thermal uses, renewable energy communities, public or collective services; 
    • cooling solutions that exclude withdrawals from public water supply systems, surface or underground drinking water, irrigation water from protected watercourses or lakes; prioritising high water-efficiency technologies, internal recycling of greywater, use of non-qualified water resources, and the return of used water to compatible irrigation or environmental systems. 

    The technical criteria, parameters and detailed thresholds shall be defined by resolution of the Regional Government within 60 days of the entry into force of the Law, with reference to the energy and sustainability KPIs of EU Regulation 2024/1364. Furthermore, Article 3 provides for potentially cumulative incentive measures for projects complying with the energy-environmental priorities set out above: 

    • reduction of procedural timeframes for the compatibility assessment; 
    • adoption of simplification protocols; 
    • priority access to regional funding for digital innovation, industrial transition, fibre optic connectivity and urban regeneration; 
    • reduction of the construction contribution (Art. 19 DPR 380/2001 – waste disposal component) between 10% and 30%, as determined by municipalities; 
    • reduction of 50% of accessory parking areas (as defined by the PGT), which may be increased up to 75% by municipal council resolution. 

    Such measures are defined in compliance with environmental, urban planning and building regulations, as well as the principles of competition, proportionality, transparency and non-discrimination. Municipalities may provide, within their urban planning regulations, additional incentive measures (Art. 3, paragraph 3). 

    In addition, with respect to urban planning aspects which are relevant for siting purposes, Article 5 introduces an innovative urban planning classification system based on connection capacity: 

    • Data centres with connection capacity > 5 MW: productive (industrial) urban planning designation. 
    • Data centres with connection capacity ≤ 5 MW: compatibility with productive, tertiary and office designations. 

    This is a significant practical innovation that enables the siting of “edge” data centres in consolidated urban areas.

    • The productive designation also applies for the purposes of calculating the construction contribution.
    • Data centres integrated with district heating networks may also be located in areas designated for technological services, provided that the data centre function is complementary or ancillary to the primary designation (Art. 5(1)).

    In addition, the following incentive/disincentive mechanisms should be taken into account.

    Siting on brownfield areas: compensatory measures may be reduced based on the economic-financial assessment of remediation costs incurred.

    Siting on agricultural land (non-priority areas): the construction contribution is increased by 100% (by 200% if in areas falling within the perimeter of protected areas under L.R. 86/1983). The proceeds are earmarked for ecological, environmental, energy and urban/territorial redevelopment compensatory measures. Such measures may also be carried out by the interested operator, by agreement with the municipality, in compliance with the prescriptions issued as an outcome of environmental assessments, where applicable (Art. 5, paragraph 4).

    3. Authorisation procedures and Regional Data Centre Office

    Article 4 regulates the authorisation procedures with the following main provisions:

    • Dedicated regional office. A specialised Regional Data Centre Office will manage the entire permitting process, acting as a single point of contact for operators. ARPA Lombardia provides technical-scientific support.
    • Single procedure & competent authority. The Region issues the Integrated Environmental Authorisation (AIA) for data centres between 50 MW and 300 MW, within the single procedure under DL 21/2026. Below the AIA threshold, ordinary environmental and planning procedures apply (including AIA), but a regional task force will streamline them.
    • Mandatory energy report. Projects must include an energy report covering on-site renewable maximisation, additional renewable supply, justifications for any shortfall, predictive energy-environmental KPIs, and a heat-recovery/district-heating feasibility study. This report informs the assessment and any compensatory measures.
    • Multi-agency task force & transparency. A multi-stakeholder task force will issue technical-administrative guidelines. The procedure must ensure transparency, publicity, and public participation.

    4. Supra-municipal relevance and territorial agreements

    Article 5, paragraph 7, provides that:

    • Projects with connection capacity > 10 MW are classified as being of supra-municipal relevance and require a compatibility assessment through a consultative concertation conference.
    • The conference verifies externalities and impacts on territorial, environmental, infrastructural and social components.
    • Outcome: supra-municipal planning territorial agreement with equalisation and compensatory measures of an ecological, environmental, energy and urban/territorial redevelopment nature. Additional compensatory measures consisting of interventions for integration and socio-economic development of local communities may be adopted according to proportionality criteria. The Law does not expressly provide that the agreement shall take effect as a variation to municipal urban planning instruments; however, it qualifies the agreement as an instrument of “supra-municipal planning” and defers to the Regional Government the definition of the procedural modalities (Art. 5(10)). 
    • The conference is convened by the Metropolitan City/Province; or by the Region for projects > 50 MW or inter-provincial projects.
    • Phased implementation is permitted, subject to verification of the availability of energy and water infrastructure.

    The connection capacity thresholds referred to in paragraph 7 are decreased by the total nominal capacity of photovoltaic plants installed on rooftops or on the ground within the project area, provided they fall within the priority areas under Art. 2, paragraph 1, letter a). The practical effect is to allow the project to remain below the supra-municipal relevance threshold (and the consequent concertation conference), benefiting from a more streamlined authorisation process. This constitutes a structural incentive for the integration of on-site renewable generation (Art. 5, paragraph 12).

    5. Mapping of brownfield areas

    Article 6 regulates the mapping of disused and underused areas:

    • Municipalities must identify/update disused, contaminated, degraded, unused or underused areas within 365 days of the entry into force of the Law.
    • The resolution is adopted by the municipal council and takes effect upon publication in the BURL.
    • Annual updates are required only in case of substantial changes.
    • The Region provides technical support tools, databases and standardised templates.
    • Municipal non-compliance does not preclude the submission of applications for data centre siting.
    • Provinces and the Metropolitan City must publish collected data via the geoportal within 60 days (failure to publish results in exclusion from regional funds for territorial governance).

    6. Monitoring: Steering Committee and European database

    The Law also establishes a monitoring system (Arts. 7–8), centred on a Permanent Steering Committee with advisory and impact-assessment functions, and on interoperability with the European database under Regulation 2024/1364.

    7. Transitional provisions

    Article 9 provides for the following transitional provisions:

    • The procedures under Art. 4 (i.e., single authorisation procedure under Regional competence) apply to applications submitted from the date of publication of the technical-administrative guidelines.
    • Pending AIA procedures shall be concluded by the Metropolitan City/Province.
    • The supra-municipal agreement procedure applies from the publication of the operational modalities.

    Deadlines for Regional Government Resolutions (DGR) and their content:

    • Within 30 days: identification of the competent regional directorate where the Regional Data Centre Office is to be established (Art. 4, paragraph 4);
    • Within 60 days: (i) identification of the criteria, parameters and thresholds of the energy-environmental priorities (Art. 2, paragraph 1, letters b, c, d); (ii) specification of the incentive measures (Art. 3); (iii) approval of the technical-administrative guidance for coordination of AIA and IEA procedures (Art. 4, paragraph 8) – whose publication in the BURL constitutes the dividing line between the transitional regime and the new regulation; (iv) criteria for the compatibility assessment in the concertation conference (Art. 5, paragraph 9); (v) modalities of the procedure for the execution of the supra-municipal territorial agreement and criteria for equalisation and compensatory measures (Art. 5, paragraph 10).

    8. Conclusions and operational guidance for operators

    The Law represents a significant step in the regulation of the data centre sector in Italy, positioning itself as the first regional model for the implementation of the national framework introduced by the Energy Bills Decree.

    The following operational guidance is noted:

    • Incentives for brownfield areas. The Law introduces strong incentives for siting in disused areas (reduced compensation, procedural benefits) and significant disincentives for agricultural land consumption (increase of the construction contribution by 100-200%).
    • Disincentives for siting on agricultural land (non-priority areas). The construction contribution is increased by 100% (by 200% if in areas falling within the perimeter of protected areas under L.R. 86/1983).
    • Energy report as key document. The energy report becomes a fundamental compliance document, with investigative relevance and direct impact on the definition of compensatory measures. Early coordination with the grid operator (TSO/DSO) for the definition of available capacity is recommended. In this regard, the regulatory provision is consistent with established sector practice, where no operator commences project development without having first obtained approval of the Minimum General Technical Solution (STMG) from the grid operator, upon which the connection parameters and, consequently, the effectively available capacity and the identification of the correct authorisation pathway depend3.
    • Edge data centres in urban areas. The recognition of compatibility of data centres with capacity ≤ 5 MW with tertiary and office designations constitutes a practical innovation of primary significance, enabling the siting of “edge” infrastructure in consolidated urban areas.
    • Power threshold system. The threshold system (5 MW / 10 MW / 50 MW) is determinative for identifying the applicable urban planning and authorisation regime. Preliminary verification of the connection capacity parameter is essential in the site selection phase.
    • Photovoltaic deduction mechanism. The system of decreasing power thresholds based on on-site photovoltaic capacity constitutes a significant structural incentive: integrated design of photovoltaic systems may allow projects to remain below the supra-municipal relevance threshold (10 MW), avoiding the concertation conference and benefiting from a faster authorisation process.
    • Deferred operability. The full operability of the regulation is deferred to the adoption of Regional Government resolutions (30-60 days from entry into force): pending applications follow the previous regime. The approval of the technical-administrative guidance (Art. 4, paragraph 8) constitutes the dividing line between the transitional regime and the new regulation.

    Other key contact: Gianluca Di Stefano, Senior Associate.

    1. This is the first regional law in Italy specifically dedicated to the regulation of data centre siting. The Law fits within the national regulatory framework outlined by Article 8 of Decree-Law No. 21 of 20 February 2026 (the so-called “Energy Bills Decree” – Decreto Bollette), converted with amendments by Law No. 49 of 10 April 2026, which introduced the single authorisation procedure for data centres at the state level. The regional legislation is also in continuity with the principles and content of Bill No. 1821 (“DDL Data Centre”), which, once definitively approved, would grant the Government delegation for the organisation, construction, development and enhancement of data processing centres.

    2. As determined by the national framework (Art. 7 (4-ter) of Legislative Decree 152/2006, as referenced by Art. 4(1) of the Law).

    3. The implementation plan or building permit application for the construction or expansion of a data centre equipped with emergency generators must indicate the nominal thermal capacity parameter (MW) of the generators, with an indicative value for the purposes of coordination with EIA procedures and EIA screening. This value constitutes an initial reference for implementation planning purposes, without prejudice to the precise definition at the conclusion of the single authorisation procedure under Art. 8 of DL 21/2026 (Art. 5, paragraph 5). The implementation plan or application must also indicate the requested connection capacity parameter (Art. 5, paragraph 6).

    The information provided is not intended to be a comprehensive review of all developments in the law and practice, or to cover all aspects of those referred to.
    Readers should take legal advice before applying it to specific issues or transactions.

    Key Contacts