Italian multi-utility A2A said on Wednesday it had raised its total projected investments for 2024-2035 to 23 billion euros ($27 billion), with 1.6 billion euros earmarked for creating and managing data centres.

The updated business plan to be presented to analysts later increases projected investment by 1 billion euros and nudges up financial targets in the final part of the strategy.

A2A also confirmed minimum annual dividend growth of 4%.

Shares in A2A were down 6% at 0840 GMT, while Milan’s blue-chip index rose, with traders citing overly cautious financial estimates for next year as the reason for the drop.

A2A stock has risen by around 14% in the last 30 days.

Italy’s northern region of Lombardy encompasses the country’s financial capital Milan and the industrial city of Brescia, a geographic area where A2A sees a surge in new digital infrastructures that will boost electricity demand, network connection and thermal management needs.

“A2A’s long-standing presence in Lombardy together with the significant acquisition of electricity networks in the provinces of Milan and Brescia, put the group in a privileged position to actively support the roll-out of data centres”, A2A CEO Renato Mazzoncini said in a statement.

Data centres around Milan are expected to add around two gigawatts of capacity over the next five years, a tenfold increase from current levels, Mazzoncini said last month.

Separately A2A, which specialises in energy and waste management in Italy, reported a 4% year-on-year decline in its nine-month core profit to 1.73 billion euros ($2 billion), due to lower hydroelectric production.

Source: Globalbankingandfinance