Italian multi-utility A2A has outlined a significantly strengthened long-term roadmap to 2035, increasing total investments to €23 billion and placing equal emphasis on decarbonisation, circular resource systems, and the rapid rise of digital infrastructure. The updated strategy positions the company at the forefront of Italy’s electrification push while preparing the energy system for the demands of an increasingly data-driven economy. With Europe facing mounting pressure to scale renewable energy and expand digital capacity, A2A’s revised vision raises a central question: can the utility sustain rapid growth while maintaining financial discipline and delivering on its long-term sustainability commitments?

Expanding Strategic Vision for a High-Energy, High-Digital Italy

The new plan reinforces the company’s framework around two principal pillars: the Energy Transition and the Circular Economy. More than one third of the €23 billion investment package has already been committed or initiated, signalling A2A’s intention to accelerate execution rather than simply outline aspirational targets.

Chief Executive Renato Mazzoncini described the revised roadmap as a platform designed to build and operate the core infrastructure of Italy’s modern economy. The plan seeks to address rising electricity consumption, integrate large volumes of renewable capacity, support industrial decarbonisation and enable the expansion of digital services that require reliable power and thermal management. The company continues to anchor its growth strategy around its Net Zero 2050 objective while pursuing an industrial scale-up capable of supporting both national and European energy objectives.

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Strengthening Grids, Expanding Renewables and Accelerating Electrification

A2A’s recent acquisition of electricity distribution assets in Milan and Brescia gives it a central role in Italy’s electrification pathway. These networks form the backbone of a planned €4.9 billion investment programme dedicated to grid reinforcement, connection capacity and system resilience. The company aims to prepare its infrastructure for increasing volumes of distributed generation and the integration of new flexible loads, such as electric mobility and data centres.

On the generation side, A2A plans to reach 3.7 gigawatts of wind and solar capacity by 2035, marking a significant expansion of its renewable footprint. These assets will be complemented by upgraded thermal power plants designed to operate more efficiently and support the intermittency of variable renewables. The company’s mobility strategy includes installing 16 thousand publicly accessible charging points by 2035, a move intended to align with Italy’s broader electrification ambitions. In the retail segment, A2A expects to serve around five million customers, increasingly dominated by electricity accounts as households and businesses shift away from fossil fuels.

Circular Economy Expansion and a Strategic Push into Data Infrastructure

A major structural change in the updated plan is the creation of a dedicated Circular Economy division responsible for managing water resources, district heating, waste treatment and energy recovery. This business unit is expected to handle 6.6 million tonnes of waste annually by 2035 while unlocking more opportunities for material reuse and renewable thermal generation. With €7 billion earmarked for this pillar, the company seeks to address Italy’s persistent infrastructure gaps in waste management and circular resource flows.

The most notable addition to the circular economy pillar is A2A’s entry into the data centre market. The company plans to invest €1.6 billion to develop and operate data centres that maximise synergies with its energy infrastructure, including heat recovery, efficient cooling and stable power supply. Lombardy’s emergence as Italy’s primary digital hub gives A2A a strategic advantage in offering integrated energy and thermal solutions for operators requiring high reliability. This move reflects a broader European trend where utilities are increasingly positioned at the intersection of digital and energy systems.

Anchoring Growth with Governance, Capital Discipline and International Expansion

The financial architecture of the plan supports both expansion and stability. A2A aims to maintain a Net Financial Position below 2.8 times EBITDA, while projecting EBITDA of €2.4 billion by 2028 and €3.6 billion by 2035. Ordinary net income is forecast to exceed €1.1 billion in the final year of the plan. Dividend growth of at least four percent annually was reaffirmed, reflecting management’s commitment to shareholder stability during a period of heightened investment.

Internationally, A2A intends to enter select European markets using a controlled expansion model. The company plans to acquire or partner with local platforms and subsequently scale operations through incremental investments in renewable energy, waste-to-energy and related infrastructure. This approach is designed to reduce execution risk while offering entry points into markets undergoing similar transitions.

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Implications for Europe’s Dual Shift Toward Energy Security and Digital Capacity

A2A’s long-term strategy reflects a broader transformation across the European utility sector. As decarbonisation accelerates, energy companies are evolving into multi-infrastructure providers capable of linking renewable generation, advanced waste systems and digital infrastructure into a cohesive industrial ecosystem. The convergence of data centre development and energy planning in A2A’s roadmap illustrates how utilities are adapting to new patterns of electricity demand and emerging revenue opportunities.

For policymakers and investors, A2A’s plan offers a real-world example of how utilities can pair emissions reduction with economic expansion. The challenge lies in managing rising capital requirements, ensuring transparent governance and maintaining progress toward long-term climate goals as energy and digital systems evolve. In many ways, A2A’s performance over the next decade will serve as an indicator of how effectively European utilities can navigate the intersection of sustainability, digitalisation and industrial competitiveness.

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