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Data Centers in Granada

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Granada – Emerging Digital Hub for Southern Spain

Granada is establishing itself as a strategic digital infrastructure location for southern Spain. It offers a cost-effective and low-risk environment, ideal for organizations targeting the Andalusian market or requiring a secondary disaster recovery site to complement primary deployments in Madrid or Barcelona. This emerging market provides reliable power and connectivity for content delivery and regional services.

Granada: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBSolid national connectivity, though international routes are concentrated in larger hubs.
Direct Cloud On-Ramps0 – as of September 2025Access cloud providers via Madrid or Barcelona through private network extensions.
Power Cost$0.11–$0.15 / kWhCompetitive pricing supported by a high percentage of renewable energy sources.
Disaster RiskLow (2.6/10) – as of September 2025Very low exposure to significant natural hazards common in other regions.
Tax IncentivesNoSpain does not currently offer specific tax incentives for data center development.
Sales Tax21% VAT – as of September 2025The standard Value Added Tax rate applies to equipment and services.

Network & Connectivity Ecosystem

Granada’s connectivity ecosystem is developing, providing essential access for regional operations. The infrastructure is primarily built on Spain's strong national fiber network, with latency to Madrid sufficient for most applications that are not ultra-low latency dependent.

Carrier Density & Carrier Neutrality Carrier density is focused, with at least 1 major national provider present in the market as of September 2025. Carrier-neutral facilities offer interconnection options, though the ecosystem is smaller than in Spain's primary markets.

Direct Cloud On-Ramps There are no direct public cloud on-ramps within Granada as of September 2025. Businesses connect to cloud providers like AWS, Google Cloud, and Microsoft Azure through dedicated network links to facilities in Madrid.

Internet Exchange Points (IXPs) Public peering is limited within Granada. Most network traffic is exchanged through private peering or routed via national IXPs in Madrid and Barcelona to ensure efficient traffic flow.

Bare Metal Bare metal server options are available, typically from national providers or those specializing in the European market. Providers like OVHcloud offer solutions that can serve the region from nearby data centers.

Power Analysis

Spain's power infrastructure is modern and reliable, with a significant and growing share of renewable energy. This focus on green energy helps stabilize costs and meet corporate sustainability goals.

Average Cost Of Power Industrial power rates in the region range from $0.11 to $0.15 per kWh as of January 2024. This competitive pricing, combined with a grid powered by over 56% renewables, presents a compelling financial and environmental advantage.

Power Grid Reliability The national power grid is well-engineered and stable. Data centers in the region are supported by reliable power infrastructure, with redundant connections available to ensure high uptime for critical operations.

Market Access, Business & Tax Climate

Granada provides a strategic foothold for accessing the more than 8 million people in the Andalusia region, one of Spain's most populous autonomous communities.

Proximity To Key Business Districts Local data centers serve the city's Health Sciences Technological Park, a hub for biomedical research, as well as the university and thriving tourism sector. This proximity is critical for applications requiring lower latency for data processing and delivery.

Regional Market Reach From Granada, organizations can effectively serve all of southern Spain and even use it as a strategic link for services extending into North Africa. It is a logical point of presence for content delivery networks and distributed application architectures.

Tax Advantage For Data Centers While Spain lacks specific tax incentives for data centers, the country's general corporate tax structure is competitive within the European Union. Businesses benefit from a clear and established regulatory framework for investment and operations.

Natural Disaster Risk

Granada has a low overall risk profile, with an INFORM Risk score of 2.6 out of 10 as of September 2025. This makes it a secure location for critical infrastructure, with minimal exposure to significant environmental threats.

The primary natural hazards to consider, though still rated low to moderate, include:

  • River Flood: The risk is present in specific low-lying areas but is manageable with proper site selection.
  • Drought: A regional environmental concern that can impact water resources but poses no direct operational threat to data centers.
  • Earthquake: The region has some seismic activity, but the risk level is considered low. Facilities are built to modern seismic codes.
  • Coastal Flood & Tsunami: These are national-level risks for Spain's coastline and do not directly affect the inland location of Granada.
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