Italian fibre network operator Retelit, backed by Asterion Industrial Partners, is exploring a potential sale of its data centre business, valued at up to €700 million ($760 million). This early-stage review aims to cut debt and capitalize on surging demand for cloud infrastructure and AI-driven connectivity in southern Europe. Despite no formal process initiated, the move reflects private equity exit strategies in European data centres, where investor appetite has intensified. A successful divestiture would significantly deleverage Retelit’s balance sheet and crystallize value for Asterion, aligning with broader trends of infrastructure funds seeking high-growth digital assets.
- Company Exploring Sale
- Retelit (backed by Asterion Industrial Partners)
- Asset Under Review
- Data centre business unit
- Estimated Valuation
- Up to €700 million ($760 million)
- Primary Strategic Driver
- Cut debt and unlock value from assets
- Market Context
- Surging demand for cloud infrastructure and AI-driven connectivity in southern Europe
- Current Investment Program
- €370 million to expand data centre capacity
- Retelit Acquisition Date
- 2021 by Asterion Industrial Partners
- Retelit Acquisition Value
- €1.1 billion
- Data Centre EBITDA Contribution
- Over 40% of group EBITDA (2025 filings)
- Retelit Net Debt (Q3 2025)
- €850 million (4.2x EBITDA)
- Projected Leverage Post-Sale
- Under 2.5x EBITDA
- Milan Data Centre Growth
- Stock surpassing 500 MW by late 2025, 300 MW under construction
Italian fibre network operator Retelit, backed by private equity firm Asterion Industrial Partners, is evaluating a potential sale of its data centre business valued at up to €700 million ($760 million), according to people familiar with the matter cited by Bloomberg. The early-stage review aims to cut debt and unlock value from assets buoyed by surging demand for cloud infrastructure and AI-driven connectivity in southern Europe.
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Retelit has not launched a formal sale process and emphasized that data centres remain integral to its strategy, with a €370 million investment program underway to expand capacity. Asterion echoed this, stating no sale has been initiated. Still, the move reflects private equity exit strategies in European data centres, where investor appetite has intensified amid hyperscaler expansions.
Strategic Context and Market Drivers
Retelit operates extensive fibre-optic networks and data centres across Italy, serving telecom operators, enterprises, and cloud providers. Milan has solidified as a pivotal hub for southern European data centre development 2026, drawing commitments from Google, Amazon Web Services, Microsoft Azure, and Data4. CBRE data shows Milan’s data centre stock surpassing 500 MW by late 2025, with 300 MW under construction—positioning it as Europe’s fastest-growing market outside traditional Frankfurt and London clusters.
Asterion acquired Retelit in 2021 for €1.1 billion from a consortium including F2i and CDP Equity. The data centre unit, contributing over 40% of group EBITDA per 2025 filings, has benefited from Italy’s low-latency advantages for Mediterranean edge computing. Bain & Company’s 2026 Global Private Equity Report notes data centre assets trading at 15-20x EBITDA multiples, up from 12x in 2023, fueled by AI workloads requiring 10x more power per server.
Financial Rationale and Debt Reduction Focus
A €700 million transaction would represent a multiple on invested capital exceeding 3x for Asterion, aligning with private equity infrastructure exits in telecom 2026. Retelit’s net debt stood at €850 million as of Q3 2025, per company reports, with leverage at 4.2x EBITDA. Proceeds could deleverage the balance sheet to under 2.5x, enhancing covenant headroom amid rising European interest rates.
| Metric | Value (€M) | YoY Change |
|---|---|---|
| Revenue | 450 | +12% |
| Data Centre EBITDA | 120 | +18% |
| Net Debt | 850 | +5% |
Potential Buyers and Comparable Deals
Interest could come from infrastructure funds like KKR, which deployed €2.5 billion into European data centres in 2025, or hyperscalers seeking colocation capacity. Goldman Sachs’ 2026 M&A Outlook highlights cross-border M&A trends in data centres 2026, with U.S. buyers targeting EMEA for diversification. Kirkland & Ellis advised on 15 such deals last year, citing regulatory tailwinds from EU’s Digital Markets Act easing foreign investments.
Recent precedents include:
- Digital Realty’s €1.2 billion acquisition of a 200 MW Italian portfolio from IRIDEOS (2025), at 18x EBITDA.
- Asterion’s €450 million sale of Spanish fibre assets to Digi (2024), yielding 2.8x MOIC.
- Equinix’s €900 million Milan campus expansion, signaling hyperscaler anchor demand.
Industry Implications and Regulatory Outlook
A sale would underscore European telecom infrastructure divestitures 2026, where operators unbundle data centres to fund 5G and fibre rollouts. McKinsey’s 2026 Infrastructure Report projects €50 billion in data centre capex across southern Europe by 2030, but power constraints and EU sustainability mandates pose risks. Italy’s ARERA regulator approved 20% higher grid allocations for Milan hubs in December 2025, mitigating bottlenecks.
For Asterion, the process—potentially formalizing in 2027—fits a pattern of value crystallization ahead of fund lives ending in 2028. Retelit CEO Federico Protto has prioritized hybrid models blending fibre and edge data centres, per January 2026 interviews. Buyers would gain from 99.999% uptime SLAs and proximity to Equinix LD4 interconnections.
Any deal hinges on valuation discipline amid softening power pricing forecasts from BCG’s 2026 analysis, which tempers multiples for non-hyperscale assets.
Sources
