The data center market in Iberia is experiencing one of the most intense moments in recent history. Alongside the traditional demand for colo, cloud, retail, and corporate projects, there is now a wave of high-power AI projects that is reshuffling the map of locations, land prices, and electrical infrastructure in Spain and Portugal.
The outlook for Q4 2025 is clear: there remains strong appetite for buying and developing assets, but location, available power, and proximity to major hubs are more important than ever.
1. Operation Types: Location Is Key
In the buying and selling of data center projects, a fairly defined pattern is observed:
- Prime proximity to Madrid and Barcelona
Projects of 5 to 20 MW IT in the closest surrounding areas (within the first 5–10 km from the M-40 or equivalent rings) are the most liquid. They seek zones with high traffic demand, good fiber connectivity, and scalability options, even if phased. - Other capital cities with solid local demand
Operations of 2 to 10 MW in cities with critical mass of population, business fabric, and a strong fiber network—such as regional nodes or industrial areas connected—continue to attract interest, especially for regional corporate and cloud workloads. - Hyperscale and AI campuses
Large projects of 60 to 150 MW IT are concentrated in locations with , such as Zaragoza or Aceca (Toledo). These sites are already conceived as AI campuses, with multiple buildings and phased growth, where the critical factors are high-voltage lines, dedicated substations, and advanced cooling options. - Projects with more challenges
In the current context, projects below 100 MW IT and located away from main hubs (Madrid, Barcelona, Zaragoza) or large cities face greater viability and marketing difficulties: higher risk of stalling and less interest from major investors or hyperscale clients.
2. M&A and Major Alliances: The Value Chain Is Integrating
Investor enthusiasm is not limited to data center operators. The construction, energy, and operational value chains are also being reconfigured:
- Iberdrola + Echelon Data Centres (November 2025)
Creation of Echelon Iberdrola Digital Infra, a joint venture with a planned investment exceeding €2 billion. The first major campus will be in Aceca (Toledo) with 144 MW IT in its initial phase. - Microsoft + Start Campus + Nscale (November 2025)
Announcing a $10 billion plan in Sines (Portugal) with a potential of 1.2 GW, positioning Sines as one of the peninsula’s strategic hubs for hyperscale and AI workloads. - Grupo ACS (Iridium) enhances capabilities
In July 2025, ACS acquires Segade, a company specialized in high-voltage lines and substations, and in 2024, it completed the purchase of Dornan Engineering to strengthen MEP (mechanical, electrical, plumbing) capabilities in data center construction. This is a clear sign of vertical integration to execute increasingly complex projects. - Colocation funds and platforms
Deals such as Nabiax acquisition by Aermont Capital (approx. €1 billion) or Adam Data Center (Madrid and Barcelona) by CVC DIF in 2024 demonstrate that the traditional colo and edge markets remain attractive to institutional capital.
3. Major Investments and New Campuses: Iberia as a European Hub
The list of ongoing and announced projects in Iberia for Q4 2025 illustrates the scale of this moment:
- Amazon Web Services (AWS) – Aragón (Cloud Region)
Expansion of the AWS Spain Region in Aragón with a multi-site plan surpassing 1,000 MW IT long-term and an estimated CAPEX of €15.7 billion between 2024 and 2033. - Microsoft Azure – Aragón and Sines (Portugal)
Projects in La Muela, Villamayor, and Puerto Venecia, totaling over 500 MW IT and more than €10 billion planned over 15 years, along with the large-scale Sines project with Start Campus (up to 1.2 GW and over €8.5 billion long-term). - QTS / Blackstone – Calatorao (Zaragoza)
Entering Spain with a 300 MW IT campus and an investment plan of approximately €11.8 billion across multiple data centers. - Vantage Data Centers – Villanueva de Gállego (Zaragoza)
A 200 MW IT project with an investment close to €3.2 billion for a full campus. - Azora (Tillion) – Villamayor de Gállego (Zaragoza)
Megacampus of between 150 and 300 MW IT, with an estimated CAPEX of €2 billion. - Iberdrola + Echelon – Aceca (Toledo)
“Madrid South” campus with 144 MW IT in its first phase and joint investment exceeding €2 billion within the joint venture. - Global operators in Madrid and Barcelona
Digital Realty has announced over €500 million between Madrid (MAD5) and Barcelona; Equinix continues expansion in Alcobendas with a project recognized as a Project of Special Interest by the Madrid community, with around €500 million invested; Iron Mountain, Merlin/Edged, Pure Data Centers, and Asterion are also expanding or developing new sites along the Madrid-Barcelona axis and in Portugal.
Overall, these figures confirm that Iberia is solidifying its position as one of Europe’s most relevant data center growth poles, supported by three key factors: availability of renewable energy, still competitive land prices, and its strategic geographic position as a node connecting Europe, Africa, and the Americas.
4. Opportunities… and the Need for Technical Support
For investors, utilities, constructors, and operators, the message is twofold:
- There are clear opportunities in project buying and selling, expanding existing campuses, and new developments.
- However, the technical and regulatory complexity is increasing: high-voltage connections, substation design, integration of renewables and storage, advanced cooling requirements for AI, permit processing, and coordination with TSO/DSO.
If someone is analyzing the purchase, sale, or development of these assets in Spain and Portugal, Osprel can support throughout the entire cycle, from high-voltage engineering and renewable generation (PV, wind, BESS) to technical due diligence and campus development support.
The Q4 2025 outlook confirms that the wave of investment is not over; it is simply becoming bigger, more technical, and more selective.
Image via LinkedIn OSPREL.