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Data Centers in Madrid

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Madrid – Southern Europe's Cloud & Connectivity Hub

Madrid is rapidly becoming a primary data center hub for Southern Europe, attracting major investment from hyperscale cloud providers and enterprise clients. For any business targeting the Iberian Peninsula, North Africa, or looking for a key network exchange point between the Americas, Africa, and Europe, Madrid offers a compelling combination of robust connectivity, a growing cloud ecosystem, and a stable operating environment. This market provides the critical infrastructure needed to deliver low-latency services and secure digital assets.

Madrid: At A Glance

FactorRating / DataNotes
Global Connectivity GradeAA major network gateway with extensive fiber routes to Europe, Africa, and the Americas.
Direct Cloud On-RampsOver 7 — as of September 2025AWS, Azure, Google Cloud (GCP), IBM Cloud, Oracle Cloud offer direct, low-latency connections.
Power Cost$0.11–$0.15 / kWh — as of January 2025Competitive for a major European hub; significant renewable energy mix reduces carbon footprint.
Disaster RiskLow (2.6/10) — as of September 2025Minimal exposure to significant natural disasters, enhancing operational stability.
Tax IncentivesNo — as of August 2025Spain does not currently offer specific tax incentives for data center development or operations.
Sales Tax21% VAT — as of September 2025Standard Value Added Tax applies to equipment purchases and services.

Network & Connectivity Ecosystem

Madrid's status as a top-tier European connectivity hub is well-established. Its strategic location makes it a critical nexus for data traffic, offering diverse and resilient network options.

Carrier Density & Carrier Neutrality: With approximately 49 providers and 45 data centers operating in the market as of September 2025, Madrid offers a rich selection of national and international carriers. The environment is dominated by carrier-neutral facilities, ensuring competitive pricing and choice for interconnection.

Direct Cloud On-Ramps: Madrid provides over 7 dedicated cloud on-ramps, enabling direct, high-performance access to 19 distinct cloud regions as of September 2025. Major providers with a physical presence include:

  • AWS
  • Google Cloud (GCP)
  • Microsoft Azure
  • IBM Cloud
  • Oracle Cloud

Internet Exchange Points (IXPs): The primary exchange points in Madrid are ESpanix and DE-CIX Madrid. These IXPs are vital for efficient local traffic exchange, reducing latency and transit costs for content, cloud, and network providers.

Bare Metal: Bare metal cloud solutions are readily available in Madrid. Providers like phoenixNAP offer dedicated server infrastructure for workloads requiring maximum performance and security without virtualization overhead.

Power Analysis

Madrid provides a reliable and increasingly green power infrastructure, capable of supporting the high-density deployments required by modern computing.

Average Cost Of Power: Industrial electricity rates typically range from $0.11 to $0.15 per kWh as of January 2025. This competitive pricing, combined with a grid that sourced 56% of its energy from renewables in 2024, makes it an economically and environmentally sound choice.

Power Grid Reliability: The power grid serving Madrid's main data center zones is modern and well-engineered. Facilities benefit from redundant connections to multiple substations, ensuring high levels of uptime and service continuity.

Market Access, Business & Tax Climate

Madrid's location is a strategic asset, providing excellent access to both local and international markets.

Proximity To Key Business Districts: Data centers are located with easy access to Madrid's central business districts and technology parks. This proximity allows financial services, media, and enterprise companies to connect their office locations to their colocation infrastructure with minimal latency.

Regional Market Reach: As the capital of Spain, Madrid is the ideal location for serving the country's 47 million people and the broader Iberian Peninsula. Its advanced network links also make it a primary gateway for delivering services to North Africa and a key peering point for transatlantic traffic from Latin America.

Tax Advantage For Data Centers: Spain does not offer specific tax incentives for the data center sector as of August 2025. The standard corporate tax rules and 21% VAT apply, providing a predictable financial framework for operators and their clients.

Natural Disaster Risk

Madrid's risk profile for natural disasters is exceptionally low, with an overall INFORM Risk score of 2.6 out of 10 as of September 2025. This stability is a significant advantage for mission-critical infrastructure.

The primary environmental hazards to consider are moderate and manageable:

  • River Flood: Rated 6.4/10, though modern data centers are built outside of identified floodplains.
  • Coastal Flood & Tsunami: Rated 4.9 and 4.6 respectively. These are national-level risks and do not directly impact the inland location of Madrid.
  • Drought: Rated 4.4/10, a regional concern managed through national water strategies.
  • Earthquake: Rated 2.9/10, indicating very low seismic activity.
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