Data Centers in Madrid

Madrid – Iberia's Premier Cloud & Interconnection Hub

Madrid is rapidly becoming a primary interconnection point for Southern Europe, Africa, and Latin America. Its dense concentration of network carriers, direct cloud on-ramps, and a growing data center footprint make it an essential market for enterprises seeking low-latency access to the Iberian Peninsula and beyond. This strategic location ensures high-performance connectivity and scalable infrastructure for digital business.

Madrid: At A Glance

Network & Connectivity Ecosystem

Madrid has firmly established itself as a top-tier European connectivity hub, offering a rich and diverse ecosystem for network-dependent businesses.

Carrier Density & Carrier Neutrality: With over 45 data centers and approximately 49 service providers, Madrid offers a highly competitive and carrier-neutral environment, as of September 2025. This density ensures resilient, low-latency connectivity options for colocation and bare metal deployments.

Direct Cloud On-Ramps: The market features over 7 dedicated cloud on-ramps, providing direct, private access to 19 cloud regions. Major providers available include AWS, Google Cloud (GCP), Microsoft Azure, IBM Cloud, and Oracle Cloud.

Internet Exchange Points (IXPs): The primary exchange is ESpanix, which is critical for local peering, reducing latency, and optimizing traffic routing within Spain and across the Iberian Peninsula.

Bare Metal: Bare metal cloud solutions are readily available from multiple providers. Global suppliers like Hivelocity and phoenixNAP offer dedicated server infrastructure in the Madrid market.

Power Analysis

Madrid provides a favorable environment for data center operations, combining competitive energy pricing with a reliable electrical grid.

Average Cost Of Power: Industrial electricity rates in Madrid range from $0.11–$0.15 per kWh, as of September 2025. These competitive costs help lower the total cost of ownership for high-density compute and storage infrastructure.

Power Grid Reliability: The power grid supporting Madrid's primary data center zones is modern and well-engineered. Facilities benefit from redundant power feeds and multi-substation support, ensuring high levels of uptime and service continuity. The national grid mix features over 56% renewables, as of early 2024.

Market Access, Business & Tax Climate

Madrid's strategic location and business-friendly environment provide excellent access to both local and international markets.

Proximity To Key Business Districts: Data centers are located with strategic access to Madrid's financial center and technology parks. This proximity allows financial services, media, and enterprise clients to achieve the low latency required for critical applications.

Regional Market Reach: As a key hub for Southern Europe, Madrid offers an ideal location for serving customers throughout Spain and Portugal. Its robust international connectivity also makes it a primary gateway for services extending to North Africa and Latin America.

Tax Advantage For Data Centers: While Spain does not currently offer specific tax incentives for data center development or operation, the country's general business climate is stable. The standard 21% VAT rate applies to equipment and services, a common structure within the European Union.

Natural Disaster Risk

Madrid's location provides a remarkably stable and low-risk environment for data center infrastructure, crucial for ensuring business continuity.

The overall INFORM Risk score for Spain is 2.6 out of 10, placing it in the "Low Risk" category, as of September 2025. The primary natural hazards to consider, though all are rated low, include:

• River Flood: 6.4/10
• Coastal Flood: 4.9/10 (Regional, not a direct threat to inland Madrid)
• Tsunami: 4.6/10 (Regional, not a direct threat to inland Madrid)
• Drought: 4.4/10
• Earthquake: 2.9/10

The risk from tropical cyclones is nonexistent, and human-caused hazards like conflict are extremely low. This stable risk profile makes Madrid an ideal location for mission-critical infrastructure requiring maximum uptime.