HSCALE: Fulfilling the Power Requirements of AI Clusters
As compute-hungry AI workloads seek new infrastructure to accommodate the cooling and power requirements of AI clusters across Southern Europe, HSCALE has secured its second hyperscale data centre campus in Northwest Milan.
This expansion brings its total committed power capacity in the region to 250MW.
The two campuses are scheduled for service in 2028. According to HSCALE, more than €2bn (US$2.32bn) has been committed to the Milan market, with pre-construction and procurement work already underway.
Infrastructure designed for AI density
Both Milan campuses are built to support high-density AI deployments alongside traditional cloud computing workloads. HSCALE says the cooling infrastructure allows operators to switch between air-cooled, direct liquid-cooled and hybrid configurations without structural changes or additional capital expenditure.
This design approach could address one of the main operational challenges facing AI infrastructure operators. Training and inference workloads now require rack densities that exceed what air cooling systems can handle, while networking and storage infrastructure continues to rely on conventional cooling methods.
The ability to deploy multiple cooling technologies within the same facility could reduce deployment timelines for operators running mixed workload environments. It also means operators can shift cooling strategies as AI chip architectures change without requiring facility redesigns.
"We designed HSCALE's Milan campuses around a simple principle, the building should never be the bottleneck," says Oliver Schiebel, CEO at HSCALE.
"Our base design is liquid-cooled first, built for the most demanding hyperscale and AI workloads and can pivot to air-cooled traditional deployments in the same physical structure. No redesign, no additional capex. We design and build like this because we understand the long-term commitments our customers must make."
Power and site control
HSCALE says both sites are fully owned, with power already committed and development milestones secured. In markets where power access and permitting can delay projects by several years, the company positions delivery certainty as a core element of its strategy.
Located in Settimo, Northwest Milan, the campuses sit within one of Europe's established hyperscale locations. The area hosts cloud providers and continues to attract infrastructure investment due to connectivity access and available grid capacity.
According to HSCALE, almost 50% of the campuses' power supply will come from renewable sources including solar, wind and hydroelectric generation. The company says it intends to increase the renewable share as additional grid capacity becomes available across Northern Italy.
HSCALE has partnered with Aquila Clean Energy to access integrated renewable energy supply rather than relying on conventional power purchase agreements.
This approach could provide more predictable energy costs for AI workloads, which consume substantially more power per rack than traditional compute environments.
Milan as AI infrastructure location
Milan continues to grow as a connectivity location outside Europe's traditional FLAP-D markets of Frankfurt, London, Amsterdam, Paris and Dublin. The city hosts MIX, Italy's largest internet exchange point, which connects more than 420 networks.
Its location places it between European and Mediterranean network routes, which could support growing demand for regional AI training and inference infrastructure. Operators seeking alternatives to capacity-constrained markets in Northern Europe have been evaluating locations with stronger energy availability.
"Milan is one of the strongest hyperscale markets in Europe and we are committing around €2bn (US$2.32bn) to this region because we understand what the market needs and are serious about its growth potential," says Paul Berry-Selwood, CCO at HSCALE.
"Our team closed the second site, secured the power and is already progressing through pre-construction, ensuring we deliver real capacity, as fast as possible."
Deployment timeline and backing
HSCALE is backed by Bain Capital, which manages approximately US$225bn in assets across private equity, venture capital, credit markets and real assets investments.
The Bain Capital backing could provide the capital required for long-term infrastructure commitments as AI operators seek multi-year capacity agreements.
The company expects the campuses to support employment growth during construction and operational phases. According to HSCALE, the developments will draw from Milan's engineering, IT and data centre operations workforce.
HSCALE says it is supporting local community initiatives through sponsorship of the Festival di Villa Arconati – a cultural event in the Milan metropolitan area.
With both campuses progressing through development, HSCALE is continuing work across its hyperscale infrastructure pipeline while preparing for delivery milestones scheduled for 2028.
