Energy Decree: provisions regarding data centers

Since July 24, a draft decree-law has been circulating titled: “Urgent measures regarding the resolution of virtual saturation of electricity grids, integration of data processing centers into the electricity system, mitigation of wholesale gas market price volatility, and investments in the transport and storage of polluting emissions”.

According to media reports, the draft might be considered at the next Council of Ministers meeting on August 4.

 

Provisions regarding data centers

Article 3 of the draft is titled “Single procedure for issuing authorizations for data center projects” and includes the following main aspects:

• The construction and expansion of data centers are subject to a single authorization procedure, conducted through a conference of services, and applies to user connection networks of any voltage level.
• The competent authority for issuing the authorization is the one responsible for integrated environmental authorization.
• Authorization responsibilities cannot be delegated to sub-provincial entities.
• The authorization will include all required approvals and opinions, such as: landscape authorization, cultural heritage authorization, integrated environmental authorization, environmental impact assessment.
• The single procedure mustn’t exceed ten months, extendable only in exceptional cases by three months.
• Environmental impact assessment timelines will be halved.
• Special cases:
• The single authorization procedure doesn’t apply to data centers declared of national strategic interest under Article 13 of Decree-Law 104/2023.
• If the project requires a user connection above 220 kw, the region is the competent authority for authorizing the connection works, if the project has already obtained enabling titles, including environmental approvals.

 

Comments

Competence

• The single authorization will be issued:
• by the region, or in case of delegation (eg in Lombardy), by the province/metropolitan city for projects up to 300 MW.
• by the Ministry of the Environment and Energy Security (MASE) for projects exceeding that threshold.

Transitional rule

• The draft doesn’t include a transitory rule.

Anyway, authorized projects shouldn’t fall under this new procedure.

Partially authorized projects (eg projects that have completed environmental screening or obtained grid connection authorization), along with those in progress, would be subject to the new procedure.

Potential delays

• If the decree is approved as currently drafted:
• Municipal administrations may need to suspend or close ongoing procedures.
• Applicants may need to resubmit new applications to the competent authority.
• There’s a risk that previously obtained procedural opinions may be deemed invalid, requiring re-initiation of already completed steps.
• Provinces/metropolitan cities may face a sudden influx of new procedures, risking bottlenecks.
• It’s unlikely that environmental impact assessment timelines can truly be halved. Currently, screening takes about a year, and a full EIA takes about two years. Without procedural reform, significant reductions seem unrealistic.

Connection with other initiatives

• In the coming days, it will be important to understand how the draft aligns with the “Strategy for Attracting Foreign Industrial Investment in Data Centers in Italy,” published by the Ministry of Enterprises and Made in Italy (MIMIT) on July 16, which is currently under public consultation (open until August 16).