Madrid now accounts for more than 60% of operational capacity, with public and private investments anticipating a 35% annual growth rate until 2030.
Spain is at a pivotal point in its digital infrastructure development. The country is experiencing unprecedented expansion in data centers, driven by the rise of artificial intelligence, cloud computing, and the Internet of Things (IoT). Industry estimates suggest that installed capacity could have multiplied sixfold in just two years, reaching 600 megawatts (MW) by early 2025, representing a cumulative increase of 275%.
Projections are clear: demand for data centers in Spain will grow between 25% and 35% annually through 2030. This trend reflects the increasing reliance on digital services in daily life: from mobile telephony and email to streaming, financial transactions, and AI applications.
Madrid, a hub of interconnectivity
The Spanish capital now hosts over 60% of the country’s operational capacity and has established itself as one of Southern Europe’s most strategic digital hubs. According to the ICT Report 2024 by DoubleTrade Spain, last year saw 16,682 ICT tenders—a 3% increase from 2023—valued at €11.749 billion. Madrid led technology public spending with €4.652 billion, followed by Andalusia (€1.486 billion) and Catalonia (€1.167 billion).
The influx of European Next Generation funds has accelerated this transformation. Authorities are implementing the Digitalization Plan 2021-2025, aimed at modernizing public services and enhancing administrative efficiency.
Multi-million dollar investments and strategic projects
The private sector’s interest in Spain is steadily rising. Amazon plans to invest €15.7 billion in Aragón, while a large-scale data center of 500 MW is under development in Cantabria with an investment of €3.6 billion. Microsoft, Meta, and Google are also strengthening their presence on the peninsula, attracted by submarine cable connectivity, regulatory stability, and energy availability.
According to Xavier Piccinini, CEO of DoubleTrade Spain, “We are seeing a shift towards hybrid models where the public sector relies on private industry to develop more efficient and sustainable data centers. Companies that can anticipate public procurement opportunities will be well-positioned to capitalize on this wave of growth.”
The energy challenge and sustainability
The rapid growth of this infrastructure presents a significant challenge: a single data center can consume more than 100 MW, surpassing the electricity usage of tens of thousands of homes. Projections indicate that the sector’s energy demand could double before 2030, highlighting the need for solutions based on renewable energy, efficient cooling, and operational optimization.
Sustainability has become a top priority, with projects integrating renewable sources, waste heat reuse, and energy efficiency strategies.
An engine for the economy and digital sovereignty
Beyond technological impact, the rise of data centers offers a strategic opportunity for economic growth and employment, as well as strengthening Spain’s and the European Union’s digital sovereignty. The combination of record public investment, growing private interest, and strategic geographic location places the country on the radar of major tech corporations and international interconnection initiatives.
Frequently Asked Questions (FAQ)
1. Why is Spain an attractive destination for data centers?
Because of its strategic position as a gateway to Europe, submarine cable connectivity, regulatory stability, energy availability, and institutional support for digitalization.
2. What role does Madrid play in this sector?
Madrid hosts over 60% of Spain’s data center capacity and has positioned itself as one of Southern Europe’s most important digital hubs.
3. What challenges does this growth pose?
The main challenge is the high energy consumption, which calls for a transition to more sustainable models and greater use of renewable energy.
4. How do European funds impact sector development?
Next Generation funds are financing key projects under the 2021-2025 Digitalization Plan, modernizing infrastructure and speeding up the adoption of advanced technologies.