Italy Cuts Red Tape For Data Centers

On February 20, 2026, Law Decree No. 21 (the Decree) was published in the Official Gazette. It contains urgent measures on energy that introduce a significant new regulatory framework for data center development in Italy. Article 8 of the Decree establishes a single national authorization procedure (procedimento unico nazionale) designed to streamline and accelerate data center construction, expansion, and grid connection in Italy.

The new framework provides applicants with a single point of contact for all necessary authorizations, reducing administrative burden and project timelines through expedited decision-making. This reform signals the Italian government's commitment to positioning the country as a competitive destination for hyperscale and enterprise data center investment, as part of broader efforts to strengthen Italy's digital infrastructure and energy security.

Key features of the new authorization framework

Single authorization procedure

The Decree consolidates multiple permits and approvals into a single authorization, issued by the competent authority for Integrated Pollution Prevention and Control (IPPC) under Legislative Decree No. 152/2006 (the Italian Environmental Code). The authorization covers data center construction and expansion, as well as related user grid connection networks of any voltage.

Competent authority

Jurisdiction is allocated based on thermal capacity:

• Regional or Autonomous Provincial authorities are competent for facilities with generators having a nominal thermal capacity of 50 MW or more.
• The Ministry of the Environment and Energy Security (MASE) is competent for facilities with thermal capacity of 300 MW or more.

Notably, authorization functions cannot be delegated to sub-provincial entities.

Consolidated permits

The single authorization encompasses all necessary environmental and administrative approvals, including IPPC and EIA, landscape and cultural heritage authorizations, water use permits, and atmospheric emission permits.

Accelerated timelines

Ten-month maximum duration

The unified procedure must be completed within ten months from verification of complete documentation. This timeline may be extended by a maximum of three months only in exceptional circumstances related to the nature, complexity, location, or scope of the project.

Reduced EIA timelines

Timeframes for environmental impact assessments under the new procedure are halved compared to ordinary deadlines.

Screening EIA procedure

Where a project undergoes screening to evaluate whether an EIA is required and is subsequently determined to require a full EIA, the environmental assessment application must be filed within a mandatory 90-day deadline. Failure to meet this deadline results in automatic withdrawal of the authorization application (save for the possibility to resubmit the application and restart the process).

Projects of strategic national interest

Data center projects declared to be of strategic national interest pursuant to Article 13 of Decree-Law 104/2023 (converted by Law 136/2023) will receive authorization from a special commissioner under expedited procedures. This legislation is designed to facilitate foreign investment programs in Italy with a total value of at least EUR1 billion, including through the appointment of special commissioners. The special commissioner is appointed by decree of the president of the Council of Ministers, in agreement with the president of the relevant region, to ensure the coordination and administrative action necessary for the timely and effective implementation of such projects.

Transitional provisions

For data center projects that have already obtained their required permits (including environmental approvals) prior to the Decree's entry into force, and that require authorization for user connection works with voltage exceeding 220 kV, the competent authority is the territorially affected region.

Where such works span multiple regions, jurisdiction lies with the region containing the largest portion of the works to be realized.

Implications for regional legislation—the Lombardy Region case

The establishment of a unified national procedure represents a clear centralization of authorization competence. Regions will no longer be able to establish parallel or alternative authorization procedures, nor unilaterally redefine the authority competent for environmental permits. Regional authorities retain important functions in territorial governance, urban planning, energy programming, localization criteria, and compensatory measures, and will participate in the services conference (conferenza di servizi) convened under Law 241/1990.

This development is particularly relevant in Lombardy, Italy's leading region for data center concentration, where two regional legislative proposals (PDL No. 123 and PDL No. 150) addressing data center authorization are currently under discussion. These proposals will require revision to align with the new national framework.

Entry into force and conversion

The Decree entered into force on February 21, 2026 and must be converted into law by Parliament within 60 days.

Practical considerations for investors

The new unified procedure offers several advantages for international clients considering data center investments in Italy:

• A single point of contact and consolidated permit process reduces administrative complexity.
• Binding maximum timelines of ten months (extendable to 13 months) provide greater predictability for project planning.
• The halving of EIA timelines significantly accelerates the environmental review process.
• Clear allocation of competence between regional and national authorities eliminates jurisdictional uncertainty.

The Decree must still undergo parliamentary conversion by April 21, 2026, during which amendments may be introduced.

We will continue to monitor the legislative process closely and engage early with competent authorities to understand how the new procedures will be implemented in practice, and we remain available for further clarifications.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.