Data Centers in Bilbao

Bilbao – Northern Spain's Emerging Digital Hub

Executive Summary

Bilbao is establishing itself as a key digital infrastructure hub for Northern Spain and a viable secondary market to Madrid. The city offers a compelling combination of competitive power pricing, strong regional connectivity, and a remarkably low natural disaster risk profile. This makes it an ideal location for businesses requiring resilient and cost-effective colocation for serving the Iberian Peninsula and Southwestern Europe.

Bilbao: At A Glance

Network & Connectivity Ecosystem

Bilbao's connectivity ecosystem is growing, supported by a healthy mix of local and national providers operating within its data centers.

Carrier Density & Carrier Neutrality The market features 8 data centers with access to over 7 unique network providers, as of September 2025. Carrier-neutral facilities provide the primary interconnection points, offering diverse options for network redundancy and competitive pricing.

Direct Cloud On-Ramps There are no direct public cloud on-ramps within Bilbao, as of September 2025. Secure, low-latency access to all major cloud providers, including AWS, Google Cloud, and Microsoft Azure, is achieved via dedicated private network connections to the primary interconnection hub in Madrid.

Internet Exchange Points (IXPs) While Bilbao does not host a major public internet exchange, most peering is handled efficiently through private interconnects or via Spain's primary IXPs in Madrid, such as ESpanix and DE-CIX Madrid.

Bare Metal Bare metal server options are available in the region, providing dedicated, high-performance computing resources. Providers like phoenixNAP offer deployment options in nearby markets for low-latency service to Bilbao.

Power Analysis

Spain's power infrastructure is both cost-effective and increasingly sustainable, presenting a significant advantage for data center operations.

Average Cost Of Power Industrial power rates in Spain range from $0.11 to $0.15 per kWh, as of January 2024. This competitive pricing, combined with a high percentage of renewable energy, helps control operational expenditures while meeting sustainability goals.

Power Grid Reliability The national power grid is well-engineered and reliable, particularly in key economic zones like Bilbao. Data centers in the area are supported by redundant power feeds from multiple substations, ensuring high levels of uptime for mission-critical operations.

Market Access, Business & Tax Climate

Bilbao provides strategic access to a significant economic region within a standard European tax framework.

Proximity To Key Business Districts Data centers in Bilbao serve the city's thriving port, industrial, and financial sectors. The location is ideal for supporting logistics, manufacturing, and service-based companies throughout the Basque Country and Northern Spain.

Regional Market Reach Bilbao is positioned to serve the entire northern coast of Spain and is a logical point of presence for connecting to markets in Southwestern France. Its infrastructure can effectively reach millions of consumers and businesses within a low-latency radius.

Tax Advantage For Data Centers Spain currently offers no specific tax incentives for data center development or operation, as of August 2025. The financial advantage of operating in Bilbao stems from competitive operational costs, particularly power and real estate, rather than government tax relief programs.

Natural Disaster Risk

Bilbao has an exceptionally low risk profile for natural disasters, making it a highly secure location for critical infrastructure.

The region's overall risk is rated as Low, with an INFORM Risk Score of 2.6 out of 10, as of September 2025. This score reflects minimal exposure and high coping capacity. The most notable, yet still low, natural hazards are:

• River Flood: 6.4/10
• Coastal Flood: 4.9/10
• Tsunami: 4.6/10
• Drought: 4.4/10
• Earthquake: 2.9/10