The Italian cloud computing market hit €8.13 billion in 2025, surging 20% year-over-year, fueled by AI workloads and sovereign data demands. For startups and enterprises building multi-agent systems with CrewAI—like researcher-planner-critic-executor crews—the biggest headache isn’t just orchestration; it’s skyrocketing, unpredictable GPU inference costs from hyperscalers (source: Osservatori).
Imagine scaling your AI project only to watch costs explode by 15% overnight, thanks to an unannounced GPU price hike from a major hyperscaler., will eat your margins, especially as hardware shortages and AI frenzy push prices up across the board.
The culprit? Hyperscalers like AWS, Azure, and Google Cloud dominate nearly 90% of Europe’s cloud spend, but their pricing is shifting from “always down” to inevitable hikes amid AI infrastructure costs. AWS broke its 20-year precedent in January 2026 with a 15% jump on EC2 Capacity Blocks for ML workloads, taking p5e.48xlarge instances (eight NVIDIA H200 GPUs) from $34.61 to $39.80 per hour. Forecasts predict 5-10% increases industry-wide by mid-2026, driven by 15-25% server hardware inflation from DRAM shortages and GPU demand.
This is where Regolo steps in. As Europe’s leading LLM as a Service provider, we deliver high-performance NVIDIA H100/A100/L40S GPU clusters—100% green, zero data retention, and fully sovereign with data in Europe. No vendor lock-in, pay-as-you-go pricing, and low latency that slashes your TCO compared to hyperscalers.
Italy’s Cloud Market Surge in 2025
Italy’s cloud ecosystem hit €8.13 billion in 2025, up 20% from 2024, outpacing Europe’s 20% growth to $112 billion. Public & Hybrid Cloud led with €5.83 billion (+21%), where IaaS jumped 23% to €2.63 billion—45% of total spend—thanks to virtual machines powering AI apps.
SaaS followed at €2.2 billion (+19%), boosted by AI-integrated security and analytics tools, while PaaS crossed €1 billion (+21%) via generative AI APIs. Private Cloud grew fastest at +23% to €1.39 billion, driven by sovereignty demands and national providers.
For SMEs, adoption holds at 67%, but Public & Hybrid spend rose 18% to €690 million, focusing on security and apps. Public Administration migrations via Strategia Cloud Italia and Polo Strategico Nazionale further fueled this.<!– Suggerimento immagine: Chart showing Italy cloud market breakdown by segment (Public/Hybrid, Private, IaaS/SaaS/PaaS) for 2025 vs 2024, with growth percentages. Alt text: “Italy cloud market growth 2025: €8.13B total, +20% YoY” –>
Hyperscaler Price Skyrocketing: The AI Cost Crisis
Hyperscalers’ dominance comes at a price—literally. AWS’s January 2026 15% GPU hike marked the end of its “prices only go down” era, hitting ML Capacity Blocks hard amid H200 shortages. OVH Cloud’s CEO forecasts 5-10% rises across AWS, Azure, GCP, and Oracle by September 2026, as 15-25% hardware inflation (RAM, NVMe) passes through.
Global cloud infra spend hit $102.6B in Q3 2025 alone (+25% YoY), with hyperscalers’ capex exploding to $600B+ in 2026—75% AI-tied. Enterprises face “cloud inflation”: even with some compute discounts, AI-driven consumption offsets them, pushing bills up 5-10% YoY.
| Provider/Event | Price Change | Details | Impact on AI Workloads |
|---|---|---|---|
| AWS EC2 p5e.48xlarge (8x H200 GPUs) | +15% (Jan 2026) | $34.61 → $39.80/hour | First-ever AWS hike; forces Capacity Blocks for availability |
| Industry Forecast (OVH CEO) | +5-10% (Apr-Sep 2026) | Hardware inflation 15-25% | Affects all hyperscalers; GPUs, storage hit hardest |
| General Compute/Storage | +5-10% YoY (2025) | Incremental rises in EC2, S3 | AI consumption amplifies effective costs |
Why Sovereignty Matters Amid Price Volatility
Europe’s 90% hyperscaler reliance sparks sovereignty alarms—54% of large orgs cite slow European provider innovation. Italy pushes back with sovereign clouds, as 46% of mega-firms adopt hybrid strategies (+10% YoY), ditching pure Cloud First (down to 32%).
AI amplifies this: 25% use AI-as-a-Service APIs, 23% ready apps, 16% dev platforms—but only 30% trust Public Cloud fully, preferring Private/on-prem for control. Challenges like 59% lacking AI data policies and 46% struggling with AI Act traceability persist.
Regolo embodies this: EU-resident infra ensures GDPR compliance, zero retention protects IP, and green energy cuts hidden costs. No US data risks or lock-in.
AI and Cloud: Inseparable but Risky
Cloud powers AI, but dependency bites. Italy’s growth ties to AI, yet governance gaps loom: over half prioritize AI for 2026, but cybersecurity (72%) and regs like NIS2/DORA/AI Act (39%) dominate projects.
Hyperscaler hikes exacerbate this—enterprises negotiating hybrids gain leverage, locking lower rates. Regolo’s pay-as-you-go GPU clusters scale on-demand, benchmarking 2x cheaper for steady LLM inference vs. post-hike hyperscalers.
Example: A startup fine-tuning Llama 3 on H100s pays $31.40/hour on AWS Capacity Blocks. Switch to Regolo: same perf, lower latency, sovereign data—at fraction of cost with no upfront commitments.
Regolo: your Sovereign GPU Alternative
Tired of price surprises? Regolo’s LLM as a Service delivers NVIDIA H100/A100/L40S clusters tailored for AI devs and data scientists.
- Cost Savings: Pay-as-you-go avoids hyperscaler hikes; green energy optimizes TCO.
- Sovereignty: 100% EU data residency, zero retention, privacy-first.
- Performance: Low-latency inference/training; scales seamlessly.
- Easy Start: Free trial, no credit card needed.
| Feature | Hyperscalers (AWS/Azure/GCP) | Regolo GPU Clusters |
|---|---|---|
| Pricing Model | On-demand + hikes (e.g., +15% GPUs) | Pay-as-you-go, stable |
| Data Sovereignty | US-centric risks | EU-resident, zero retention |
| AI Focus | Broad, capacity scarce | LLM-optimized H100/A100/L40S |
| Green/Energy | Variable | 100% green, efficient |
| Latency | Global variability | Low, Europe-optimized |
FAQ
Why is Italy’s cloud market growing so fast in 2025?
AI demands and sovereignty push it to €8.13B (+20%), with Private Cloud up 23% for data control.
Are hyperscaler prices really increasing?
Yes—AWS hiked GPUs 15% in 2026; 5-10% more expected industry-wide by mid-2026 due to hardware costs.
What is cloud sovereignty and why care?
It means EU control over data/infra, vital for GDPR/AI Act amid 90% US hyperscaler dominance.
How does Regolo beat hyperscaler costs?
Pay-as-you-go GPU clusters, no hikes, sovereign EU infra—often 2x cheaper for LLMs.
Can SMEs benefit from sovereign cloud?
Absolutely—Italy SMEs upped spend 18%; Regolo’s scalable, low-entry model fits perfectly.
Is AI driving these cloud price changes?
Yes, $450B+ hyperscaler capex in 2026 is 75% AI-related, spiking GPU/RAM prices.
Ready to Ditch Hyperscaler Hikes?
Italy’s €8.13B cloud boom signals opportunity—but hyperscaler price surges threaten your AI edge. Prioritize sovereignty, control costs, and scale smartly with Regolo’s green GPU clusters. Don’t wait for the next 15% hike.
Start your free trial now at https://regolo.ai/ and transform your LLM workloads today.
Book a personalized demo to crunch your numbers — your margins will thank you 🙂
- Regolo Discord – Share your thoughts
- GitHub Repo – Code of blog articles ready to start
- Follow Us on X @regolo_ai
- Open discussion on our Subreddit Community
🚀 Ready to scale?
Built with ❤️ by the Regolo team. Questions? support@regolo.ai or chat with us on Discord