Spain’s data center market is on a meteoric rise, with Arizton’s latest report revealing a staggering 11.39% compound annual growth rate (CAGR) from 2024 to 2030. This growth is not just a number; it’s a testament to Spain’s transformation into a digital powerhouse. The market is set to reach an impressive $4.30 billion in investment, 733,000 square feet in area, and 170 MW in power capacity by 2030. This growth is fueled by a perfect storm of factors: the expansion of 5G connectivity, a surge in internet users, and the adoption of cutting-edge technologies like AI and IoT. Government initiatives, such as the UNICO program, are further accelerating this growth by improving broadband access in rural areas.
The report highlights that major cloud service providers like AWS, Microsoft, and Oracle are not just dipping their toes but diving headfirst into the Spanish market. Oracle’s $1 billion Madrid data center and Microsoft’s $2.1 billion Spain Central region investments are just the tip of the iceberg. New facilities from Equinix, CyrusOne, and EDGNEX are enhancing Spain’s digital infrastructure, positioning it as a key player in the global data center landscape. The expansion of 5G and stringent data protection laws are further supporting this growth, making Spain an attractive hub for data center investments.
Spain is also leading the charge in renewable energy, with renewables accounting for about 60% of the country’s power generation in the first half of 2024. Solar energy has emerged as the second-largest source, and Spain is positioning itself as a leader in green hydrogen production. Notably, a ten-year Power Purchase Agreement (PPA) between Elawan Energy and Cellnex will supply over 400,000 MW of renewable energy annually from solar and wind farms in 2024. This aligns with Spain’s commitment to achieving carbon neutrality by 2050, as outlined in the EU’s climate neutrality goals. Major companies are expanding their renewable-powered infrastructure in Spain, including Prime DataCenter’s new facility in Madrid, AWS’s $17 billion investment in Aragon, and Apple’s 105 MW solar power agreement in Segovia.
The colocation data center market in Spain is booming, with around 60 existing facilities and Madrid hosting over 30 of them. Leading operators like AtlasEdge, CyrusOne, Equinix, and Digital Realty are driving this growth, with occupancy rates averaging 80% in Spain and 70% in Madrid as of H1 2024. The market is experiencing rapid growth, driven by increasing demand and emerging hyperscale footprints. Significant investments from companies like AQ Compute, Atlantic Data Infrastructure, and Prime Data Centers are expanding the market. Prime Data Centers, for instance, acquired over 280,000 square feet of land in Madrid to develop a 40 MW facility.
Spain’s data center infrastructure is also supported by key operators such as Delta Electronics and Vertiv. The cloud & IT sector leads in colocation demand, followed by BFSI. In 2024, companies like Equinix, Form8tion Data Centers, and Digital Realty are developing around 19 new data centers in cities like Madrid, Barcelona, Bilbao, and Valencia. The lower-end retail colocation market, driven by ISPs and hosters in small data rooms, is expected to shrink due to consolidation. This trend is likely to reshape the market, with larger players gaining more significant market shares.
The report also highlights the key players and support infrastructure in Spain’s data center market. Global support infrastructure providers, including ABB, Caterpillar, Cummins, Delta Electronics, Schneider Electric, and Vertiv, are enhancing the market’s competitiveness. Leading colocation data center investors include Adam Ecotech, AtlasEdge, CyrusOne, Digital Realty, Equinix, and Iron Mountain, driving significant growth. The market also features a range of local and global construction contractors, such as ACS Group, Ferrovial, Ramboll, and Mercury.
This news shapes the development of the sector in several ways. Firstly, it underscores the importance of renewable energy in the data center industry. Spain’s commitment to green energy and sustainable development initiatives sets a benchmark for other countries to follow. Secondly, it highlights the growing demand for colocation services, driven by the increasing adoption of cloud-based services and digital platforms. This trend is likely to continue, with more companies investing in colocation data centers to meet their growing data storage and processing needs.
The report also challenges the norm by highlighting the role of government initiatives in driving market growth. The UNICO program, for instance,
