El Corte Inglés, known for its leadership in the retail sector in Spain, has decided to expand its horizons towards a completely different but equally strategic market: data centers. In a move that marks a before and after for the company, it has acquired 100% of the Spanish subsidiary of KIO Networks, consolidating itself as a relevant player in the technology sector.
Until recently, El Corte Inglés already owned 50% of KIO Networks in Spain, but now, with this new acquisition, it has decided to take full control. The objective? Positioning itself as a benchmark in cloud services, cybersecurityCybersecurity solutions are essential in today’s era…, and automation for both companies and public administrations, key sectors in the country’s digital future. A highly competitive market in which it will be important to see how a traditional company like El Corte Inglés will adapt.
A market in full expansion
The data center sector in Spain is growing at a rapid pace. It was estimated that by 2023, the market would reach a value exceeding 1.5 billion euros. This figure is only increasing due to the growing demand for digital services, driven by the rise of artificial intelligence (AI), SaaS services, the deployment of 5G, and the Internet of Things (IoT).
In this context, El Corte Inglés’ decision is not only a strategic expansion, but also a bet on the future. Companies and public administrations require increasingly powerful and secure infrastructures to host their data, and data centers have become the backbone of digital transformation.
Madrid, epicenter of the digital revolution
Spain, and particularly Madrid, is positioning itself as one of the most important hubs in Europe for the installation of data centers. More than 70% of the total data center capacity in the country is concentrated in the capital, and major cities like Barcelona and Bilbao are also attracting significant technological investments.
This is due, in part, to Spain’s strategic location, serving as a bridge between Europe and Latin America. Additionally, the commitment of tech giants like Amazon Web Services (AWS), Microsoft, and Google to establish data centers in Spain underscores the country’s relevance in the global digital landscape. For example, AWS has announced the opening of a data center region in Aragon, while Google has invested in a center in Madrid as part of its European expansion. Meanwhile, other 100% Spanish companies like Grupo Aire (OasixCloud) have chosen to build their own data centers in Madrid and other locations on the peninsula such as Lisbon, Talavera de la Reina (Toledo), Malaga, Alicante, the Canary Islands, among others.
David Carrero, co-founder of Stackscale, a leading cloud infrastructure company, comments: “Data centers are extremely demanding facilities from an energy perspective. They not only require continuous and reliable supply, but also advanced cooling systems that consume large amounts of energy to keep servers operating optimally. As the number of data centers in Spain increases, the challenge multiplies, as we need to ensure that the electrical grids can support this additional load without compromising sustainability or supply stability.”
The future of El Corte Inglés in the tech world
El Corte Inglés has made it clear that it not only wants to be a benchmark in department stores, but also in the technological field. By entering the data center sector, the company is laying the foundation to become a major player in the digitalization of companies and the adoption of new technologies, such as artificial intelligence and automation.
Furthermore, its new data center infrastructure will allow it to offer cloud solutions and advanced cybersecurity services, consolidating its role in the technological modernization of the Spanish business fabric.
The energy challenge
With the proliferation of data centers in Spain, important questions arise about the country’s capacity to energetically supply these infrastructures. Data centers require large amounts of energy to operate efficiently, and with so many projects underway, the question arises as to whether it will be possible to maintain the growth pace and ensure that there are enough resources to power all these servers.
Investment in renewable energy and energy efficiency will be crucial to ensure that Spain can remain an attractive destination for these technological investments, without compromising its energy sustainability.
Carrero adds: “The key lies in the adoption of renewable energies and system efficiency. If we fail to make these centers more energy efficient, we will not only face supply problems, but we will also increase our carbon footprint. It is crucial that the growth of this industry is aligned with long-term sustainability goals.”
In summary, El Corte Inglés has taken a firm step in its digital transformation, with a strategy that goes beyond its traditional retail business. By entering the world of data centers, the company joins the technological elite shaping Spain’s digital future. With a rapidly expanding market and growing demand for digital services, this move is shaping up to be a strategic move that will consolidate El Corte Inglés as a key player in the country’s technological revolution.