Data Centers in Granada
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Granada – Emerging Edge & Regional Hub for Southern Spain
Granada is establishing itself as a strategic edge data center market for southern Spain. It offers a cost-effective alternative to the primary hubs of Madrid and Barcelona, providing low-latency access for regional enterprises, research institutions, and content delivery networks. For businesses targeting the Andalusia region, Granada provides a resilient and accessible infrastructure footprint.
Granada, Spain: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, though not a primary international hub. |
| Direct Cloud On-Ramps | 0 — as of September 2025 | Madrid is the nearest hub for direct, private cloud access. |
| Power Cost | $0.11–$0.15/kWh (Industrial) | Sourced from a mix with over 50% renewables as of 2024. |
| Disaster Risk | Low (2.6/10) — as of September 2025 | Primary risks are moderate seismic activity and potential flooding. |
| Tax Incentives | No | Spain does not currently offer specific data center tax incentives. |
| Sales Tax | 21% VAT — as of September 2025 | The standard Value Added Tax rate applies to services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality The Granada market is served by at least one carrier-neutral data center, providing access to Spain's national and regional carriers. The total number of available carriers is estimated to be under 20 locally, with extended options available via connectivity to Madrid.
Direct Cloud On-Ramps As of September 2025, there are no public direct cloud on-ramps located within Granada. Businesses requiring dedicated connections to AWS, Google Cloud, Microsoft Azure, or other major clouds must establish a private network connection (PNI or wave) to facilities in Madrid, the closest major interconnection point.
Internet Exchange Points (IXPs) Local peering is limited. Most traffic exchange occurs through private peering arrangements or is routed through national IXPs like ESpanix or DE-CIX in Madrid, which serve as the primary peering points for the country.
Bare Metal Bare metal server options are available in the region, often provisioned from facilities in larger Spanish markets. Providers like OVHcloud and Leasebeb can serve customers in Granada, delivering dedicated compute resources from nearby hubs.
Power Analysis
Average Cost Of Power Industrial electricity rates in the region range from $0.11 to $0.15 per kWh, as of early 2024. This pricing is competitive for Southern Europe and is influenced by Spain's significant investment in renewable energy, which makes up over half of the national grid's power generation.
Power Grid Reliability Spain's national power grid is reliable and well-maintained. Data centers in established areas benefit from stable infrastructure and often have access to redundant power feeds from separate substations, ensuring high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data centers in Granada serve the city's prominent university, research institutions, and the Health Sciences Technology Park (PTS). This proximity is critical for organizations involved in scientific research, healthcare, and digital education that require low-latency processing.
Regional Market Reach From Granada, businesses can effectively serve the entire Andalusia region, which includes major cities like Málaga, Seville, and Córdoba. Its location provides a strategic advantage for content delivery and services targeting Southern Spain and the Mediterranean coast.
Tax Advantage For Data Centers Spain's corporate tax environment is standard for the EU, without specific incentives for data center development or operation as of September 2025. The primary financial benefit comes from operating in a lower-cost market compared to Madrid or Barcelona, rather than from direct tax advantages.
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. While the overall threat is minimal, operators should engineer facilities to account for specific regional hazards.
The most relevant natural risks for this market are:
- River Flood: The highest individual risk score (6.4/10), indicating a moderate concern in low-lying areas.
- Coastal Flood & Tsunami: While listed in the national profile, these are not direct threats to inland Granada.
- Drought: A moderate risk (4.4/10), which can impact water resources and cooling strategies over the long term.
- Earthquake: The region has some seismic activity, rated as a low-to-moderate risk (2.9/10).