Data Centers in Santa Cruz De Tenerife
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Santa Cruz de Tenerife – Strategic Subsea Cable Hub
Santa Cruz de Tenerife is a specialized data center market, valued for its strategic position as a landing point for critical subsea cables connecting Europe, Africa, and the Americas. This location is ideal for organizations requiring a network node to optimize latency and content delivery across these continents. Its unique geography provides a crucial interconnection point for global data traffic.
Santa Cruz de Tenerife: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong subsea cable access, but a developing terrestrial and cloud ecosystem. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access to major clouds requires network transit to mainland hubs like Madrid. |
| Power Cost | $0.11–$0.15 / kWh | Competitive pricing with an excellent renewable energy mix for sustainability goals. |
| Disaster Risk | Low (2.6 / 10) | The overall risk profile is low, with specific attention paid to coastal events. |
| Tax Incentives | No | Standard national tax laws apply; no specific data center incentives are offered. |
| Sales Tax | 21% VAT | The standard Spanish Value Added Tax rate applies to colocation and services. |
Network & Connectivity Ecosystem
The network environment in Santa Cruz de Tenerife is defined by its significant role in international subsea connectivity.
Carrier Density & Carrier Neutrality: The market features a focused mix of international and regional carriers, with at least one carrier-neutral facility providing interconnection services as of September 2025. This ecosystem is built around the submarine cable landing stations.
Direct Cloud On-Ramps: There are no direct, private on-ramps to major cloud providers available locally as of September 2025. Secure, low-latency connections to hyperscale cloud regions are established via network transit to mainland European hubs, primarily Madrid.
Internet Exchange Points (IXPs): The Canary Islands Network Access Point (NAP) is the primary IXP. It plays a critical role in improving inter-island network performance and facilitating traffic exchange between local and international carriers.
Bare Metal: Bare metal server options are available in the region. Providers like OVHcloud offer dedicated server solutions, allowing businesses to deploy physical hardware without connecting to a mainland European location.
Power Analysis
Average Cost Of Power: Industrial power rates in Spain are competitive for Western Europe, ranging from $0.11 to $0.15 per kWh as of September 2025. This pricing structure helps manage the significant operational expense of high-density computing.
Power Grid Reliability: The power grid is reliable and well-engineered, consistent with European standards. The national energy mix has a strong renewable component, with over 56% generated from renewable sources as of January 2024, supported by fossil fuels and nuclear power.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Tenerife serve the local Canary Islands economy, including tourism and scientific research sectors. More importantly, they are situated at the nexus of major submarine cable routes, serving as a critical infrastructure hub.
Regional Market Reach: The market's primary advantage is its reach into West Africa and its role as a mid-point for transatlantic data flows. It provides a strategic location for content delivery networks and cloud service providers aiming to serve these high-growth regions.
Tax Advantage For Data Centers: While Spain does not offer specific tax incentives for data center development, businesses operate within the stable and predictable European Union regulatory framework. The Canary Islands have a special economic zone (ZEC) with a reduced corporate tax rate, which may apply to certain qualifying activities.
Natural Disaster Risk
Santa Cruz de Tenerife has a low overall disaster risk profile, with an INFORM Risk score of 2.6 out of 10 as of September 2025. The risk assessment indicates that while the general threat is minimal, operators should engineer facilities to account for specific, localized hazards.
The most relevant natural hazards for this market include:
- River Flood: 6.4 / 10
- Coastal Flood: 4.9 / 10
- Tsunami: 4.6 / 10
- Drought: 4.4 / 10
- Earthquake: 2.9 / 10
