Microsoft (MSFT.O) announced on Wednesday that it is expanding its plans to invest 4.3 billion euros ($4.8 billion) over the next two years to fortify its cloud infrastructure and artificial intelligence (AI) capabilities in northern Italy.

The deal would be Microsoft’s largest investment made by the American company in Italy to date, according to a statement. The cloud area ItalyNorth will become one of Microsoft’s largest data centers in Europe as a result, serving as a hub for data throughout the Mediterranean and North Africa.

The government welcomed an investment that would expand Italy’s digital position in the Mediterranean, according to a message released by the PM’s office following their meeting with Prime Minister Giorgia Meloni on Wednesday in Rome. Brad Smith, vice chair of Microsoft, also attended the meeting.

Meloni met with Larry Fink, the newly appointed tab chief of BlackRock Inc. (BLK.N), a U.S. fund, on Monday. Fink had been to Rome to talk about potential investments in data centers and energy infrastructure support.

A more than $30 billion fund led by BlackRock and Microsoft was unveiled last month with the goal of funding AI-focused data centers, AI supply chains, and energy sourcing. The fund’s initial focus will be on the US market, followed by partner nations in the US.

The need for artificial intelligence (AI) and cloud services is expanding quickly, as businesses in a variety of industries, including gaming and e-commerce, are distinguishing their offers by integrating custom AI models, which are algorithms that use pattern recognition to make choices.