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Data Centers in Spain

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Spain – Southern Europe's Connectivity Hub

Spain is a primary digital gateway for Southern Europe, the Iberian Peninsula, and North Africa. For businesses needing low-latency access to these markets, along with robust connectivity into major European hubs, Spain's infrastructure provides a critical strategic advantage for scaling operations and ensuring high availability. Its significant investment in renewable energy also makes it a compelling location for meeting sustainability targets.

Spain: At A Glance

FactorRating / DataNotes
Global Connectivity GradeA+Excellent fiber connectivity to Europe, the Americas, and Africa.
Direct Cloud On-RampsOver 8 – as of September 2025AWS, Azure, Google Cloud (GCP), IBM Cloud, and Oracle Cloud are present.
Power Cost$0.11–$0.15 / kWh (Industrial)Sourced from a 2024 analysis.
Disaster RiskLow (2.6 / 10)Low overall risk profile with moderate, manageable seismic and flood risks.
Tax IncentivesNoSpain does not currently offer specific data center tax incentives as of August 2025.
Sales Tax21% VATStandard Value Added Tax rate as of September 2025.

Network & Connectivity Ecosystem

Spain's network ecosystem is mature and competitive, with significant subsea cable landings making it a crucial interconnection point. The market is well-served by both global and local providers, ensuring resilient and diverse connectivity options.

Carrier Density & Carrier Neutrality With over 50 carriers operating in the country as of September 2025, Spain offers a healthy, carrier-neutral environment. This density is concentrated in Madrid and Barcelona, providing enterprises with extensive choice for transit, peering, and private network services.

Direct Cloud On-Ramps Direct, low-latency access to major cloud providers is readily available. Spain has 8 dedicated cloud on-ramps providing access to over 20 unique cloud regions as of September 2025. Major platforms with local access include:

  • AWS
  • Google Cloud (GCP)
  • Microsoft Azure
  • IBM Cloud
  • Oracle Cloud

Internet Exchange Points (IXPs) The primary Internet Exchange Points are DE-CIX Madrid and ESpanix. These IXPs are vital for efficient traffic exchange, reducing latency and costs by keeping local traffic within the country.

Bare Metal Bare metal server providers are widely available, particularly in Madrid and Barcelona. Companies like Hivelocity and phoenixNAP offer dedicated server solutions for workloads requiring maximum performance and security without a virtualization layer.

Power Analysis

Spain's power infrastructure is a key asset, characterized by competitive pricing and 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. These competitive costs, combined with a favorable energy mix, help control total cost of ownership for large-scale deployments. The grid is heavily supplied by renewables, which accounted for 56% of the mix in 2024.

Power Grid Reliability The national power grid is reliable and well-maintained, particularly in the primary data center markets of Madrid and Barcelona. Facilities in these areas are supported by redundant substations and modern infrastructure, ensuring high levels of uptime for mission-critical operations.

Market Access, Business & Tax Climate

Spain provides a stable business environment with excellent access to multiple high-growth markets.

Proximity To Key Business Districts Data centers are strategically located near the major business and technology parks of Madrid and Barcelona. This proximity enables low-latency connections essential for financial services, digital media, and corporate IT operations headquartered in these economic centers.

Regional Market Reach Deploying in Spain offers effective reach to over 60 million consumers across the Iberian Peninsula (Spain and Portugal). Furthermore, its strategic location and subsea cable connectivity make it an ideal hub for serving markets in North and West Africa, as well as providing a key landing point for transatlantic traffic from the Americas.

Tax Advantage For Data Centers Currently, Spain does not offer specific tax incentives for data center development or operation. The primary financial advantage comes from the country's competitive operational costs, including power and real estate, rather than direct tax relief.

Natural Disaster Risk

Spain has a low overall risk profile for natural disasters, making it a secure location for critical IT infrastructure. The country's INFORM Risk score is 2.6 out of 10, placing it in the low-risk category as of September 2025.

While the overall risk is low, operators should engineer facilities to account for specific regional hazards. Key risks include:

  • River Flood: The highest individual risk factor, primarily affecting specific river basins.
  • Coastal Flood & Tsunami: A consideration for facilities located directly on the Mediterranean or Atlantic coasts.
  • Drought: A recurring environmental challenge that can impact water resources for cooling.
  • Earthquake: A moderate seismic risk exists, particularly in the southern and southeastern regions of the country.
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