Data Centers in Madrid

Madrid – Iberia's Emerging Cloud Hub

Madrid is rapidly becoming the primary digital gateway for Southern Europe. Its strategic location, coupled with a surge in new data center investment and robust fiber connectivity, makes it the ideal hub for businesses targeting the Iberian Peninsula and North Africa, ensuring low-latency and high-performance application delivery.

Madrid: At A Glance

Network & Connectivity Ecosystem

Madrid's connectivity is first-rate, providing a resilient foundation for digital infrastructure. The market has seen significant investment in new subsea cable landings and terrestrial fiber, positioning it as a critical interconnection point.

Carrier Density & Carrier Neutrality With access to over 45 unique network providers as of September 2025, Madrid offers a competitive and diverse marketplace. The majority of the 45 data centers in the metro operate on a carrier-neutral basis, giving customers extensive choice for transit, peering, and private connectivity.

Direct Cloud On-Ramps Madrid provides direct, low-latency connections to major cloud platforms. As of September 2025, the market features 7 dedicated on-ramps serving 19 distinct cloud regions. Available providers include:

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

Internet Exchange Points (IXPs) The market is anchored by two primary Internet Exchanges: ESpanix and DE-CIX Madrid. These IXPs are vital for efficient traffic exchange, enabling low-cost, low-latency peering between networks and keeping local traffic within the region.

Bare Metal Bare metal server options are readily available from multiple providers in Madrid. Companies like Hivelocity and OVHcloud offer dedicated server solutions for workloads that demand the highest performance and security without a virtualization layer.

Power Analysis

Madrid offers a stable and increasingly green power grid, supported by a competitive energy market.

Average Cost Of Power Industrial electricity rates typically range from $0.11 to $0.15 per kWh as of January 2025. This predictable pricing makes it easier for businesses to forecast operational expenses for high-density compute deployments.

Power Grid Reliability The power grid serving Madrid's main data center zones is well-engineered and reliable. Facilities are commonly supported by redundant connections to the national grid, ensuring high levels of uptime and service continuity. As of 2024, over half of Spain's electricity is generated from renewable sources.

Market Access, Business & Tax Climate

Madrid provides a strong business environment with excellent access to both local and regional markets.

Proximity To Key Business Districts Data centers are strategically located to serve Madrid's core financial district and the growing number of technology parks and logistics hubs in the metropolitan area. This proximity reduces latency for financial services, e-commerce, and content delivery applications.

Regional Market Reach From Madrid, businesses can effectively serve the entire Iberian Peninsula, including over 57 million consumers in Spain and Portugal. The city's location also makes it a natural network aggregation point for traffic to and from North and West Africa.

Tax Advantage For Data Centers While Spain lacks specific tax incentives for data centers as of August 2025, the country participates in EU-wide programs that can benefit technology investment. The broader business climate is stable and well-integrated with the European single market.

Natural Disaster Risk

Madrid has a very low risk profile for natural disasters, making it one of the safest locations in Europe for critical infrastructure.

The region's overall INFORM Risk score is 2.6 out of 10, classifying it as "Low Risk" as of September 2025. Key natural hazard scores are minimal and primarily include:

• River Flood: 6.4 (Low-Moderate)
• Drought: 4.4 (Low)
• Earthquake: 2.9 (Low)

Risks from tropical cyclones, tsunamis, and coastal flooding are negligible due to the city's inland location and climate. This stable environmental profile minimizes the threat of weather-related disruptions to data center operations.