Lombardy slaps 200% tax on datacenters in green zones

Lombardy has imposed a 200% tax increase on datacenters built in green or agricultural areas, targeting projects that convert protected land into high-energy infrastructure [Il Sole 24 Ore]. The policy, now in effect, directly impacts cloud and AI firms evaluating site locations in Italy’s most industrialized region.

Regional authorities argue the tax will deter developers from repurposing farmland and natural reserves for energy-intensive facilities. The move follows growing scrutiny over datacenter expansion in the EU, particularly in water- and power-constrained areas. In Lombardy, where land pressure is acute, the tax applies only to developments on zoned green or agricultural plots—existing industrial zones remain unaffected.

This isn’t symbolic: a datacenter planned on farmland could now face triple the original fee burden. Operators including AWS, Google Cloud, and local providers will need to recalculate ROI for proposed sites. Some may shift focus to brownfield locations or regions with clearer regulatory pathways.

The tax reflects a broader EU trend—cities and regions are taking unilateral action on datacenter growth. Amsterdam and Frankfurt have imposed moratoriums; Milan is now pricing it out. Unlike incentives or caps, Lombardy’s approach uses direct financial disincentives to shape behavior.

Still, critics warn the policy could push development to less regulated parts of southern Italy or Eastern Europe, without reducing overall demand. If the goal is sustainability, taxing location may not force efficiency—just relocation.