Lombardy, Italy’s economic powerhouse, has enacted a 200% tax on data center development in agricultural and green zones to curb unchecked hyperscaler expansion and steer projects toward underused industrial sites.
Policy rationale and structure
The regional council approved the measure to address what officials describe as speculative land purchases by hyperscalers, often made “without clear timeframes and plans.” A 100% tax applies to rural areas, while the 200% levy targets agricultural and green zones. Councilor Massimo Sertori stated the goal is to “keep the phenomenon under control by avoiding excesses and the exaggerated exploitation of the territory.”
The law explicitly exempts developers who build in disused industrial zones, which already have appropriate infrastructure and permitting pathways. This creates a clear financial incentive: choosing agricultural land carries a penalty, while brownfield redevelopment carries none.
Energy and capacity pressures
Lombardy currently hosts 33 active data centers, with 10 under construction and 23 more in the application pipeline—the highest concentration in Italy. Sertori noted that total data center applications across Italy have reached up to 30 gigawatts (GW), yet only 2 GW correspond to “real and concrete projects.” The region faces a significant gap between speculative demand and deliverable capacity.
Energy consumption is a parallel concern. Data centers require substantial and reliable power, and Lombardy officials worry that uncoordinated development will strain local grids and environmental commitments. The tax is designed to slow the pace of approvals and force developers to demonstrate project viability before securing permits.
Broader European and U.S. context
Lombardy’s move mirrors growing friction in other markets. In the United States, a recent survey found 70% of respondents oppose data centers near their homes, and a Texas county has imposed temporary limits while studying environmental and infrastructure impacts. European regulators are increasingly scrutinizing land use and energy demands from AI-driven data center buildouts.
Opposition politicians in Lombardy argue the tax does not go far enough. Democrat Matteo Piloni said the law “lacks real and decisive soil protection,” and called for a national framework to prevent market-driven overdevelopment. The region’s approach is a stopgap, not a comprehensive land-use policy.
Forward-looking conclusion
Lombardy’s tax signals a shift from passive permitting to active industrial policy for data center development. By penalizing greenfield construction in agricultural zones and incentivizing brownfield reuse, the region aims to balance AI infrastructure growth with environmental and community priorities. The success of this model will depend on whether developers redirect investments to industrial sites—and whether other regions adopt similar fiscal levers to manage the data center boom.
