Data Centers in Madrid

Madrid – Southern Europe's Digital Crossroads

Madrid is rapidly becoming the essential digital gateway for Southern Europe. The market is purpose-built for businesses requiring low-latency access to the Iberian Peninsula and serves as a critical network aggregation point for traffic flowing to and from Africa and Latin America. Deploying here ensures high-performance connectivity and scalable infrastructure in one of Europe’s fastest-growing digital hubs.

Madrid: At A Glance

Network & Connectivity Ecosystem

Madrid's connectivity is its defining feature, making it a premier interconnection point in Southern Europe. The market provides direct, low-latency routes to millions of consumers and businesses across Spain and Portugal.

Carrier Density & Carrier Neutrality: The market features nearly 50 unique network providers as of September 2025. A healthy ecosystem of carrier-neutral data centers ensures competitive pricing and diverse routing options.

Direct Cloud On-Ramps: With over 7 dedicated cloud on-ramps serving 19 cloud regions as of September 2025, Madrid offers direct, private access to major platforms. These include AWS, Google Cloud (GCP), Microsoft Azure, IBM Cloud, and Oracle Cloud, reducing latency and improving security for hybrid cloud workloads.

Internet Exchange Points (IXPs): The market is served by two primary exchanges, DE-CIX Madrid and ESpanix. These IXPs are vital for localizing traffic, reducing transit costs, and improving network performance across the Iberian Peninsula.

Bare Metal: On-demand bare metal servers are readily available from multiple providers. Global suppliers like Hivelocity and phoenixNAP offer dedicated compute for performance-sensitive applications.

Power Analysis

Madrid offers a balanced power profile, combining competitive costs with a strong commitment to renewable energy.

Average Cost Of Power: Industrial electricity rates typically range from $0.11 to $0.15 per kWh as of early 2024. This pricing is competitive for a major European capital and is supported by a grid where renewables account for over 56% of the energy mix.

Power Grid Reliability: The power grid serving Madrid's primary data center zones is modern and reliable. Facilities are supported by redundant substations and resilient distribution networks designed to meet the uptime requirements of enterprise and hyperscale clients.

Market Access, Business & Tax Climate

Madrid's location is a strategic advantage, offering access to a large domestic market and serving as a bridge to other continents.

Proximity To Key Business Districts: Data centers are located with easy access to Madrid's financial center and major technology parks. This proximity allows businesses in finance, media, and enterprise sectors to achieve the low latency needed for critical applications.

Regional Market Reach: Madrid is the ideal hub for serving Spain and Portugal. It is also a key landing point for subsea cables connecting Europe with North America, South America, and Africa, making it a crucial hub for international content delivery.

Tax Advantage For Data Centers: Spain does not offer specific tax incentives for data center investment or operation. The primary financial benefits stem from Madrid's competitive operational costs and its position within the European Union's single market.

Natural Disaster Risk

Madrid has a low natural disaster risk profile, with an overall INFORM Risk score of 2.6 out of 10 as of September 2025. This stability is a key advantage for mission-critical infrastructure requiring maximum uptime and physical security.

The region's most notable environmental hazards are:

• River Flood: The highest individual risk factor, though modern flood management mitigates the threat to commercial and industrial zones.
• Drought: A regional environmental concern that can impact water resources but poses a low direct operational risk to data centers.
• Earthquake: A low but present seismic risk, factored into modern data center construction standards.