The rise of artificial intelligence and cloud computing is causing an unprecedented surge in land prices for data centers. Spain is joining the global stage alongside the United States, Northern Europe, and Asia-Pacific.
By the second half of 2025, the global data center land market has entered a boiling point. Prices have hit record levels, transforming what was once seen merely as another industrial real estate asset into the new currency of digital growth. Major tech companies — from AWS and Microsoft to Google, Oracle, and Meta — are racing to secure lands with immediate access to energy and connectivity, factors that are becoming scarcer as demand for intensive computing grows for AI, gaming, and financial services.
Spain is not on the sidelines. Madrid and its surroundings, especially areas like San Sebastián de los Reyes, Alcalá de Henares, or Getafe, are experiencing skyrocketing logistics land prices driven by interest from tech giants and investment funds. Barcelona, Valencia, and regions near Zaragoza are also gaining attention due to their connectivity, competitive costs, and progress in environmental permits.
According to industry sources, the price per square meter for data center projects in some Madrid areas has increased by more than 35% year-over-year, while the availability of lands near electrical substations has drastically decreased. This phenomenon isn’t exclusive to Spain; similar trends are observed in Frankfurt, Virginia, Texas, Singapore, and Johor (Malaysia).
In 2025, the value of land for data centers isn’t measured only in hectares but in kilowatts of available power. In regions where the electrical grid is stretched, such as Frankfurt or northern Virginia, lands near substations, solar parks, or hydroelectric plants are now paid up to four times more than 18 months ago.
Developers are prioritizing areas with streamlined licensing processes, access to cooling water, and direct connectivity to dark fiber networks or interconnection points. As a result, Nordic markets — Sweden, Finland, and now Norway — are attracting hyperscalers interested in sustainability and efficiency.
In the European context, Madrid is establishing itself as Southern Europe’s premier data hub, competing with Paris, Dublin, and Amsterdam. Spain’s appeal lies in its balance of energy costs, favorable climate, submarine cable access, and increasingly supportive legislation for such infrastructure. Lisbon is also beginning to attract land banking operations linked to data center development focusing on Latin America and Africa.
Leading the surge are hyperscalers like AWS, Microsoft, Google, and Oracle, signing multi-year land and energy agreements—sometimes years before they need capacity. They now account for over 60% of global land acquisitions for data centers.
Tech REITs like Digital Realty, Equinix, and CyrusOne are expanding into secondary markets seeking higher returns amid downturns in traditional real estate.
Infrastructure and private equity funds are betting on greenfield development (building from scratch), accelerating projects in exchange for higher capitalization margins.
One of the major transformations in 2025 is the shift in order: land isn’t purchased first to find energy later, but transactions are completed once energy supply is guaranteed. Long-term power purchase agreements (PPAs), grid access rights, and renewable incentives are becoming the true “passport” for land acquisition.
In Spain, this approach is already evident in projects in Guadalajara, Aragón, and Andalucía, where developers seek direct alliances with REE and companies like Iberdrola or Naturgy.
For developers, investors, and governments alike, this landscape presents challenges and opportunities:
For developers, margins on land are tightening, but quick sales following permit approvals can offset this. Partnerships with utilities and authorities are key.
For investors, data centers are positioning themselves as core assets amid declining yields in offices, retail, and residential markets.
For governments, streamlining procedures and ensuring a clean energy supply have become strategic priorities to attract tech investment.
Looking ahead through the rest of 2025:
- Spain and Portugal: Enhancing infrastructure and submarine cables make them critical for South Atlantic and Mediterranean connectivity.
- Chile and Colombia: Emerging entry points for US cloud services in Latin America.
- South Africa and Nigeria: Noticing land movements linked to the continent’s cloud growth.
- Asia-Pacific: Malaysia, the Philippines, and Thailand benefit from the spillover effect from Singapore.
In summary, by the second half of 2025, control over land + energy will determine who controls the future of data. Buying land for data centers has become a geostrategic tool in the AI era, and with its logistical, energy, and regulatory potential, Spain is already on the global map.
The cloud needs solid ground, and that ground is becoming increasingly expensive.
References: datacenters