Data Centers in Santa Cruz De Tenerife
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Santa Cruz de Tenerife – Strategic Atlantic Connectivity Hub
Santa Cruz de Tenerife serves as a critical digital gateway connecting Europe, Africa, and the Americas. This market is ideal for organizations requiring a strategic point of presence for content delivery, submarine cable landing, and serving markets across three continents. Its unique geographic location provides a valuable opportunity to improve latency and network performance for transatlantic data traffic.
Santa Cruz de Tenerife: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong submarine cable access compensates for limited terrestrial options. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Madrid is the nearest major hub for direct, private cloud access. |
| Power Cost | $0.11–$0.15 / kWh | Sourced from Spanish national data, as of January 2025. |
| Disaster Risk | Low (2.6/10) | Minimal exposure to significant natural hazards, as of September 2025. |
| Tax Incentives | No | No specific data center tax incentives are offered. |
| Sales Tax | 21% VAT | The standard Spanish Value Added Tax rate, as of September 2025. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality The market's connectivity is defined by its access to numerous submarine cables rather than a high density of terrestrial carriers. At least one carrier-neutral facility provides access to this international bandwidth, as of September 2025.
Direct Cloud On-Ramps There are no direct cloud on-ramps located in Santa Cruz de Tenerife, as of September 2025. Businesses requiring dedicated connections to hyperscale cloud providers must establish connectivity to mainland European hubs like Madrid. Private extension options via point-to-point circuits or wavelength services are available through local providers.
Internet Exchange Points (IXPs) The primary Internet Exchange Point is DE-CIX Canary Islands, which enhances local traffic exchange and improves performance for end-users throughout the archipelago. Most peering for international routes occurs at the submarine cable landing stations or in major European hubs.
Bare Metal Bare metal server options are available in the region, providing dedicated compute resources for latency-sensitive applications. Providers such as Hivelocity and OVHcloud offer solutions that can be deployed to serve local and regional needs.
Power Analysis
Average Cost Of Power Industrial electricity rates are estimated between $0.11 and $0.15 per kWh, as of January 2025. These competitive power costs, aligned with mainland Spain, make high-density deployments economically viable.
Power Grid Reliability The power grid is reliable and leverages Spain's national energy mix, which is increasingly dominated by renewables. As of 2024, renewable sources account for over 56% of the national electricity generation, supported by fossil fuels and nuclear power for consistent baseload capacity. Data centers in the area are typically supported by redundant power feeds and on-site generation.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data centers in Santa Cruz de Tenerife are positioned to support the island's primary industries, including tourism, logistics, and scientific research. Its port is a major hub for transatlantic shipping, making it a key location for logistics and maritime operations.
Regional Market Reach The market provides a strategic interconnection point for network traffic between Europe, West Africa, and North and South America. Its location is essential for submarine cable systems, offering a landing point that diversifies routes and reduces latency for intercontinental data flows.
Tax Advantage For Data Centers While there are no specific tax incentives for data center development, the Canary Islands operate under a special economic and fiscal regime (REF). This program offers lower corporate tax rates and other benefits that can be advantageous for businesses establishing a physical presence.
Natural Disaster Risk
Santa Cruz de Tenerife has a low overall risk profile, with an INFORM Risk score of 2.6 out of 10, as of September 2025. This indicates a very low probability of large-scale disruption from natural or human-induced disasters.
Key environmental risks for the region include:
- River Flood: Rated as the highest individual natural hazard.
- Coastal Flood: A consideration due to the island's geography.
- Tsunami: A potential, though less frequent, risk associated with seismic activity in the Atlantic.
- Drought: A moderate risk impacting water resources.
- Earthquake: The region has some seismic activity, though the direct risk score is low.
