Data Centers in Santa Cruz De Tenerife
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Santa Cruz de Tenerife – Atlantic Cable Landing & Edge Hub
Executive Summary
Santa Cruz de Tenerife is a strategic edge and connectivity hub, primarily serving organizations that require low-latency access to West Africa, Europe, and the Americas. Its importance is defined by its role as a landing point for critical subsea cables, making it a prime location for content delivery networks and services targeting transatlantic and African markets. This geographic advantage translates directly into improved application performance and user experience for businesses reaching these diverse regions.
Santa Cruz de Tenerife: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong subsea cable access, but lower terrestrial carrier density than mainland hubs. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access requires network extension to primary European hubs like Madrid. |
| Power Cost | $0.11–$0.15 / kWh | Competitive pricing with a strong renewable energy component in the grid mix. |
| Disaster Risk | Low (2.6/10) – as of September 2025 | Overall risk is low; key considerations are flood, tsunami, and seismic activity. |
| Tax Incentives | No | Specific data center incentives are not a feature of the current tax climate. |
| Sales Tax | 21% VAT – as of September 2025 | Standard Spanish Value Added Tax applies to services. |
Network & Connectivity Ecosystem
The connectivity landscape in Santa Cruz de Tenerife is defined by its strategic position in the Atlantic Ocean, serving as a major intersection for subsea cable systems.
Carrier Density & Carrier Neutrality The market features a focused mix of international and regional carriers, as of September 2025. While not as dense as mainland hubs like Madrid, the available providers offer significant capacity on transatlantic and Africa-bound routes. Colocation facilities typically provide carrier-neutral interconnection.
Direct Cloud On-Ramps Direct cloud on-ramps are not currently available in Santa Cruz de Tenerife, with 0 cloud regions accessible locally as of September 2025. Secure, private connections to cloud providers like AWS, Google Cloud, and Microsoft Azure are established through private network links to major interconnection hubs, primarily Madrid.
Internet Exchange Points (IXPs) Public peering is limited within Tenerife. The majority of traffic exchange occurs through private peering within local data centers or is routed through national exchange points in mainland Spain.
Bare Metal Bare metal server options are available, providing dedicated compute for performance-sensitive workloads. Providers such as Hivelocity offer deployment capabilities in the region, connecting directly to the rich local connectivity ecosystem.
Power Analysis
Tenerife provides a reliable and progressively green power infrastructure that meets the demands of modern data center operations.
Average Cost Of Power Industrial power costs range from $0.11 to $0.15 per kWh, as of January 2025. This competitive rate, combined with a high proportion of renewable generation, offers a cost-effective and sustainable power solution. Spain's national grid mix included 56% renewables as of 2024.
Power Grid Reliability The power grid serving the region is engineered to modern European standards. Data centers are supported by redundant power feeds, and on-site UPS and generator backup systems are standard to ensure continuous uptime.
Market Access, Business & Tax Climate
Santa Cruz de Tenerife offers unique market access advantages due to its geography and its role within the Spanish economy.
Proximity To Key Business Districts Data centers in the area provide connectivity to the capital's commercial centers, port facilities, and the significant tourism industry. This supports local enterprises and international companies that require digital infrastructure close to their Canary Islands operations.
Regional Market Reach The market's primary advantage is its ability to serve as a low-latency hub for the Canary Islands archipelago and, more importantly, as a gateway to West African nations. It also offers a strategic mid-point for data traffic between Europe, North America, and South America.
Tax Advantage For Data Centers The Canary Islands operate under a special economic and fiscal regime (REF), which can offer benefits, but specific, large-scale data center tax incentives are not a central feature. The primary financial advantage comes from leveraging the location for strategic service delivery rather than direct tax breaks on infrastructure investment.
Natural Disaster Risk
Santa Cruz de Tenerife has a low overall risk profile for natural disasters, with an INFORM Risk score of 2.6 out of 10, as of September 2025. While the overall threat is minimal, operators should engineer facilities to mitigate specific, localized environmental risks.
The most relevant natural hazards for this coastal location include:
- River Flood: The highest individual risk factor for the region.
- Coastal Flood: A notable consideration for facilities located in low-lying areas.
- Tsunami: A possibility due to its Atlantic location, requiring appropriate site selection and planning.
- Drought: A recurring environmental stressor in the Canary Islands.
- Earthquake: The region has low-to-moderate seismic activity.
