A2A Increases Investment to €23 Billion, Plans Data Centre Development

Post by : Bianca Suleiman

The Italian energy leader A2A has announced a significant escalation in its long-term investment blueprint, raising its projected spending for 2024-2035 to €23 billion ($27 billion). A significant portion of this budget, amounting to €1.6 billion, is dedicated to the establishment and management of data centres, underscoring the company's commitment to Italy's expanding digital infrastructure landscape.

This revised strategy reflects a €1 billion upsurge in projected investments while slightly enhancing financial targets for the concluding years of the plan. A2A has also assured shareholders of a sustained minimum annual dividend growth of 4%, indicating consistent returns.

A2A shares experienced a 6% decline early Wednesday at 0840 GMT, despite an increase in Milan’s benchmark index. Market analysts pointed to cautious forecasts for the upcoming year as a contributing factor to the stock decrease. Nonetheless, A2A's shares have risen approximately 14% over the past month, demonstrating investor optimism regarding its long-term strategy.

Lombardy's Digital Future

The Lombardy region in northern Italy, which includes the financial epicentre of Milan and the industrial hub of Brescia, is currently experiencing a significant uptick in demand for digital infrastructure. With its established foothold and the recent acquisition of electricity networks in the area, A2A is well-positioned to facilitate the deployment of data centres. This segment is projected to contribute an additional two gigawatts of capacity in the next five years—a tenfold increase from current figures.

Financial Overview

A2A, operating in both the energy and waste management sectors, reported a 4% decrease in core profit over nine months, bringing it to €1.73 billion ($2 billion) year-on-year, primarily due to reduced hydroelectric output. Nevertheless, the company’s reinforced investment strategy reflects a strong belief in its growth potential, particularly within digital energy solutions and infrastructure.