Data Centers in Málaga
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Málaga – Strategic Mediterranean Connectivity Hub
Executive Summary
Málaga is the premier market for businesses targeting Southern Europe and North Africa. Its role as a key landing station for intercontinental subsea cables provides a distinct low-latency advantage, directly improving application performance for millions of users across the wider Mediterranean region. This strategic position is critical for content delivery, cloud gaming, and financial services.
Málaga: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | A major subsea cable hub with a developing terrestrial ecosystem. |
| Direct Cloud On-Ramps | 0 — as of September 2025 | Nearest cloud regions are in Madrid; private connectivity is readily available. |
| Power Cost | $0.11–$0.15 / kWh (as of January 2024) | Competitive pricing supported by a high percentage of renewable energy sources. |
| Disaster Risk | Low (2.6/10) — as of September 2025 | Low overall risk profile, with manageable coastal and seismic considerations. |
| Tax Incentives | No | Spain does not offer specific tax abatement programs for data centers. |
| Sales Tax | 21% VAT — as of September 2025 | Standard Spanish Value Added Tax applies to colocation and IT services. |
Network & Connectivity Ecosystem
Málaga's importance comes from its position as a primary gateway for data traffic between Europe, Africa, and the rest of the world via a growing number of subsea cables.
Carrier Density & Carrier Neutrality: The market features 1 primary colocation provider (as of September 2025) but offers access to all major Spanish and international carriers. The ecosystem is built around carrier-neutral principles, ensuring competitive connectivity options.
Direct Cloud On-Ramps: 0 cloud on-ramps are available directly within Málaga, enabling access to 0 cloud regions (as of September 2025). The primary hub for direct cloud access is Madrid. Secure, private connections to cloud providers can be established from Málaga via dedicated circuits or wavelength services.
Internet Exchange Points (IXPs): While major public peering occurs at the ESpanix IXP in Madrid, Málaga's role as a cable landing station ensures rich private peering and transit options locally. This provides efficient traffic exchange for content and service providers.
Bare Metal: Bare metal solutions are readily available from providers serving the Spanish market. Operators like OVHcloud and Leaseweb offer dedicated server options accessible from facilities in Málaga.
Power Analysis
Average Cost Of Power: Industrial power rates in Spain typically range from $0.11 to $0.15 per kWh (as of January 2024). This competitive pricing helps manage the significant operational expense of high-density compute deployments. Spain's energy mix includes over 50% renewables, offering a sustainable power profile.
Power Grid Reliability: The power grid in the Andalusia region is modern and reliable, forming a critical part of Spain's national energy infrastructure. Data centers in Málaga are supported by a stable grid with options for redundant connections from multiple substations to ensure high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Málaga serve the city's expanding technology park (Parque Tecnológico de Andalucía) and a vibrant digital business ecosystem. This proximity is essential for local enterprises that depend on low-latency infrastructure for their operations.
Regional Market Reach: Geographically, Málaga provides exceptional reach to the 8.5 million people in Andalusia and acts as a digital bridge to North African markets like Morocco, Algeria, and Tunisia. Its subsea cable connections make it an ideal point of presence for serving the entire Mediterranean basin.
Tax Advantage For Data Centers: Spain does not currently provide specific tax incentives aimed at data center development or operation. The standard Value Added Tax (VAT) rate of 21% (as of September 2025) applies to equipment purchases and services.
Natural Disaster Risk
Málaga has a Low overall disaster risk profile, with an INFORM score of 2.6 out of 10 (as of September 2025). While the general risk is low, operators must plan for specific regional hazards.
The primary natural hazards to consider are river flooding (6.4/10), coastal flooding (4.9/10), tsunami (4.6/10), drought (4.4/10), and earthquake risk (2.9/10). Modern data centers in the area are engineered to withstand these potential events, incorporating site selection and building standards that mitigate these specific risks.
