Data Centers in Madrid

Madrid – Gateway to the Iberian Peninsula and Beyond

Executive Summary

Madrid is the primary digital crossroads for traffic flowing between Europe, Latin America, and North Africa. This market serves global enterprises requiring low-latency interconnection and high-speed access to reach 60 million consumers across the Iberian Peninsula. Positioning infrastructure here provides a resilient gateway for securing high-stakes revenue and operational speed.

Madrid: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: The market supports a dense ecosystem with over 45 unique network providers as of December 2025. This carrier-neutral environment allows for competitive routing and high-uptime architectures for demanding workloads.

Direct Cloud On-Ramps: Over 7 local on-ramps exist as of December 2025, enabling direct entry to 19 cloud regions. Localized nodes include AWS, Google Cloud (GCP), Microsoft Azure, IBM Cloud, and Oracle Cloud.

Internet Exchange Points (IXPs): MAD-id and DE-CIX Madrid serve as the primary hubs. These exchanges facilitate high-speed local peering that keeps traffic within the region to reduce latency and transit costs as of December 2025.

Bare Metal: High-performance compute is available for specialized workloads. Providers such as Hivelocity and Latitude.sh offer dedicated resources that avoid the overhead of standard virtualization as of December 2025.

Power Analysis

Average Cost Of Power: Industrial electricity rates range from $0.11/kWh to $0.15/kWh as of December 2025. These rates are competitive for the region, particularly as renewables accounted for 56% of the generation mix in 2024.

Power Grid Reliability: The local grid is well-engineered and supports major data center corridors with multi-substation redundancy. Significant investments in renewable integration provide a stable, long-term supply for large-scale deployments as of December 2025.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Facilities are located near the Paseo de la Castellana and the Alcobendas technology corridor. This placement ensures low latency for financial services and corporate headquarters operating in the city center as of December 2025.

Regional Market Reach: Madrid is the undisputed digital heart of Spain and Portugal. It provides a primary launch point for traffic reaching the entire Iberian Peninsula and Mediterranean markets as of December 2025.

Tax Advantage For Data Centers: While no specific data center tax incentives are active, the general business environment is stable for long-term infrastructure investment. This predictability helps enterprises manage capital expenditure without sudden regulatory shifts as of December 2025.

Natural Disaster Risk

Madrid maintains a Low (2.6/10) risk profile as of December 2025. Being centrally located on a high plateau, the metro is naturally shielded from most environmental threats that impact coastal regions.

• River Flood (6.4): The most notable hazard, though manageable through specific site selection and modern drainage systems as of December 2025.
• Coastal Flood (4.9): This is a regional risk for the Iberian Peninsula; as an inland metro, Madrid is protected from direct impact as of December 2025.
• Tsunami (4.6): This hazard occurs at a regional level and has no direct impact on metropolitan infrastructure as of December 2025.
• Drought (4.4): A regional concern that can impact cooling efficiency, requiring water-efficient facility designs as of December 2025.
• Earthquake (2.9): Seismic activity remains at a low level of intensity for this region as of December 2025.