Hscale Expands Milan Data Center Capacity with Bain Capital

Hscale, a prominent player in the European digital infrastructure sector backed by Bain Capital, has significantly bolstered its presence near Milan, Italy. The company finalized the acquisition of a second substantial data center site in the northwestern outskirts of the city, signaling a major commitment to the region's growing demand for high-capacity digital facilities.

This strategic expansion positions Hscale to offer a combined power capacity of 250MW across its Milanese operations, with facilities slated for service commencement in 2028. The total investment earmarked for these projects is substantial, projected at approximately €2 billion (around $2.32 billion USD). This investment underscores the critical role of the Milan area as a burgeoning digital hub within Southern Europe, attracting significant capital for infrastructure development.

The newly acquired sites are engineered for advanced cooling technologies, accommodating both direct liquid cooling and traditional air-cooled configurations, alongside hybrid solutions. This flexibility is crucial for meeting the evolving needs of hyperscale cloud providers and AI-intensive workloads. Oliver Schiebel, CEO of Hscale, emphasized the forward-thinking design philosophy: "Our campuses are built with the principle that the infrastructure should never be a limitation. We've prioritized liquid-cooling readiness from the outset, ensuring seamless scalability for the most demanding AI and hyperscale applications without requiring costly redesigns or additional capital expenditure."

Hscale's operational strategy includes a unique partnership with Aquila Clean Energy, which facilitates direct access to sustainable power sources, moving beyond conventional power purchase agreements. This focus on renewable energy integration aligns with the increasing pressure on data center operators to minimize their environmental footprint. The company was established last year following Bain Capital's acquisition of 80 percent of Aquila Group's data center division, AQ Compute, in 2024.

Currently, Hscale operates one live facility, the 6MW OSL1 site near Oslo, Norway, a legacy asset from its acquisition. The company has ambitious plans for further expansion, with development pipelines extending to key European markets including Spain (Madrid, Barcelona), Germany (Frankfurt), Switzerland (Zurich), and the Middle East in Dubai. Collectively, Hscale reports a development pipeline totaling 1GW, highlighting its aggressive growth trajectory in the competitive data center market.

The Milan expansion is particularly noteworthy given the broader European data center market trends. The continent is experiencing robust growth, driven by cloud adoption, AI development, and increasing data sovereignty requirements. Major markets like Frankfurt, London, Amsterdam, and Paris (the FLAP markets) are seeing intense competition, prompting operators to look at secondary locations like Milan for strategic expansion. The substantial investment by Bain Capital through Hscale signals strong confidence in the long-term demand for digital infrastructure in Italy and across Europe.