Data Centers in Granada
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Granada – A Strategic Iberian Digital Outpost
Granada serves as a cost-effective secondary market in Spain, ideal for disaster recovery, regional content delivery, and latency-sensitive applications targeting Andalusia. Its low natural disaster risk and competitive power costs provide a reliable operational base for businesses extending their reach into Southern Europe without the premium expense of primary hubs like Madrid or Barcelona.
Granada: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid national and regional connectivity, but limited international peering. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | The nearest major cloud hubs are located in Madrid. |
| Power Cost | $0.11–$0.15 per kWh | Competitive pricing driven by a high percentage of renewable energy sources. |
| Disaster Risk | Low (2.6/10) | Minimal exposure to significant natural hazards common to other regions. |
| Tax Incentives | No | Spain currently offers no specific tax incentives for data center development. |
| Sales Tax | 21% VAT | Standard national rate applied to services. |
Network & Connectivity Ecosystem
Granada's connectivity is reliable for regional operations but relies on larger Spanish cities for global and cloud interconnection.
Carrier Density & Carrier Neutrality: As a smaller market, Granada is served by a focused group of national and regional carriers. At least one carrier-neutral facility provides interconnection options, with access to over 15 carriers as of September 2025.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Granada. Businesses requiring dedicated cloud access connect via private network extensions or wave services to Madrid, the primary cloud region hub in Spain.
Internet Exchange Points (IXPs): Public peering is limited within Granada. Most network traffic is exchanged privately or routed through major national exchange points in Madrid or Barcelona, which handle the bulk of Spain's internet traffic.
Bare Metal: Bare metal server options are available in the region, providing a foundation for high-performance computing needs. Providers like phoenixNAP and OVHcloud offer services accessible from Granada.
Power Analysis
Average Cost Of Power: Industrial electricity rates in the Granada region range from $0.11 to $0.15 per kWh as of January 2025. These competitive costs are supported by Spain's strong investment in renewables, which make up over half of the national energy mix. This pricing structure helps lower the total cost of ownership for colocation deployments.
Power Grid Reliability: The Spanish national grid is well-engineered and stable. Data centers in and around Granada benefit from reliable power infrastructure, with redundant feeds available in established technology parks to ensure high uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Granada are positioned to serve the University of Granada, a major research and technology hub, as well as the region's significant tourism and agricultural sectors. Proximity supports low-latency services for local academic and commercial enterprises.
Regional Market Reach: Granada provides effective digital service delivery to the more than 8 million people in the Andalusia region. It is a strategic location for reaching consumers and businesses across southern Spain and North Africa.
Tax Advantage For Data Centers: Spain's primary financial benefit is its integration within the EU single market, simplifying trade and data flows. The country does not offer specific tax incentives for data centers, treating them consistently with other industrial investments.
Natural Disaster Risk
Granada has a low overall disaster risk profile, with an INFORM Risk score of 2.6 out of 10 as of September 2025. This rating reflects minimal exposure to the most disruptive natural events.
Key environmental risks for the region include:
- River Flood: The highest individual risk factor, though modern infrastructure mitigates much of the threat.
- Drought: A persistent environmental concern for the Andalusia region.
- Earthquake: The area has moderate seismic activity, requiring facilities to be built to specific codes.
