Data Centers in Palma
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Palma – Strategic Connectivity for the Balearic Islands
Executive Summary
Palma is an emerging data center market providing a critical digital infrastructure hub for the Balearic Islands. It is the ideal location for latency-sensitive applications serving the region's vibrant tourism industry and local enterprises. Deploying in Palma ensures superior performance and reliability for services targeting millions of residents and visitors in this key Mediterranean economic zone.
Palma: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | A strong regional hub, with primary connectivity routed through mainland Spain. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access is available via network extension to mainland hubs like Madrid or Barcelona. |
| Power Cost | $0.11–$0.15 / kWh | Sourced from a mix of renewables (56%) and traditional sources as of 2024. |
| Disaster Risk | Low (2.6/10) | The overall risk profile is low, with manageable exposure to specific environmental factors. |
| Tax Incentives | No | Spain does not offer specific data center tax incentives as of September 2025. |
| Sales Tax | 21% VAT | The standard Value Added Tax rate in Spain as of September 2025. |
Network & Connectivity Ecosystem
Palma offers a focused connectivity ecosystem tailored to serving the Balearic Islands. While not a primary international hub, it provides reliable access to mainland Europe.
Carrier Density & Carrier Neutrality: Carrier presence is growing, with a select group of national and regional providers offering services. The market supports carrier-neutral colocation, giving customers flexibility in selecting network partners as of September 2025.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps located in Palma as of September 2025. Businesses connect to major cloud providers by establishing private network links to primary interconnection hubs like Madrid and Barcelona.
Internet Exchange Points (IXPs): Public peering is primarily handled through national IXPs on the mainland, such as ESpanix or DE-CIX Madrid. Most local traffic exchange relies on private peering arrangements.
Bare Metal: Bare metal server options are available in the region, providing dedicated compute resources for performance-intensive workloads. Providers like IONOS offer solutions suitable for this market.
Power Analysis
Average Cost Of Power: Industrial electricity rates in Spain range from $0.11–$0.15 per kWh as of early 2024. This competitive pricing structure helps manage operational expenditures for compute-heavy deployments.
Power Grid Reliability: Spain's national power grid is modern and reliable. The Balearic Islands are connected to the mainland grid via submarine cables and supplemented by local generation, providing a stable power environment for data center operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in the Palma area are positioned to serve the island's primary economic drivers, including the tourism, hospitality, and logistics sectors. This proximity enables low-latency services for local businesses and consumers.
Regional Market Reach: Palma is the essential hub for delivering digital services to the entire Balearic archipelago, including Mallorca, Menorca, Ibiza, and Formentera. It effectively serves a significant year-round population and a seasonal influx of tens of millions of tourists.
Tax Advantage For Data Centers: Spain does not offer targeted tax incentives specifically for data centers. Businesses should evaluate colocation based on the standard corporate tax and VAT regulations, which are consistent across the country.
Natural Disaster Risk
Spain has a low overall natural disaster risk profile, with an INFORM Risk score of 2.6 out of 10 as of September 2025. While the aggregate risk is low, operators should engineer facilities to account for specific regional hazards.
The most significant natural hazard risks for the region include:
- River Flood (6.4/10)
- Coastal Flood (4.9/10)
- Tsunami (4.6/10)
- Drought (4.4/10)
- Earthquake (2.9/10)
