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Valencia – Strategic Edge Performance and Regional Resilience

Valencia serves as the primary failover and edge destination for the Iberian Peninsula, offering a strategic Mediterranean gateway for logistics and tech firms. This market delivers a balance of lower operational costs and high-speed backhaul to Madrid, ensuring regional performance without a tier-one price tag.

Valencia: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBReliable regional links to major national backbones.
Direct Cloud On-Ramps0 – as of December 2025Nearest on-ramp hub is Madrid; private extensions available.
Power CostIndustrial electricity: $0.11–$0.15 per kWh – as of December 2025Competitive pricing with a 56% renewable energy mix.
Disaster RiskLow (2.6/10) – as of December 2025Highly stable profile with minimal seismic activity.
Tax IncentivesNo – as of December 2025Standard national tax structures apply to all facilities.
Sales TaxVAT 21% – as of December 2025Standard Spanish value-added tax on services.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Carrier count: over 10, as of December 2025. Facilities in this market offer diverse routing through neutral providers like Nixval and EXA Infrastructure. This density supports local enterprises and international logistics firms requiring low-latency paths across the peninsula.

Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions, as of December 2025. While local on-ramps are not currently present, high-capacity fiber transport connects this market directly to major clusters in Madrid. Private extension options via PNI or wave services allow for secure access to global providers.

Internet Exchange Points (IXPs): Local peering is primarily managed through regional private interconnects or by extending reach to the DE-CIX Madrid hub. This ensures traffic stays local while maintaining access to a broad European peering community.

Bare Metal: Dedicated hardware solutions are available through several providers in the market. High-performance configurations are available from specialists like Hivelocity to support compute-heavy workloads at the edge.

Power Analysis

Average Cost Of Power: Industrial electricity ranges from $0.11 to $0.15 per kWh, as of December 2025. This price point provides a stable foundation for long-term operational planning compared to higher costs found in northern European markets.

Power Grid Reliability: The local grid is well-engineered with multiple substations serving primary industrial corridors in Paterna and the surrounding metro area. Redundancy is a standard feature for top-tier facilities, providing the resilient power required for mission-critical hardware.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are strategically located near the Paterna Technology Park and the Port of Valencia. This proximity is vital for the region's tech ecosystem and the logistics sector, which relies on real-time data processing.

Regional Market Reach: Valencia is positioned to serve the eastern coast of Spain effectively. It acts as a primary digital gateway for Mediterranean maritime trade and a secondary site for Madrid-based operations requiring geographic diversity.

Tax Advantage For Data Centers: While specific local incentives for data centers are absent, the general business climate supports stable long-term investment. Operational costs remain lower than in major European hubs, providing a natural financial benefit for scaling infrastructure.

Natural Disaster Risk

Low (2.6/10), as of December 2025. Valencia maintains a high safety profile, making it a reliable choice for primary or backup infrastructure.

  • River Flood (6.4): This is the primary concern for the area, managed through site selection in elevated industrial zones.
  • Coastal Flood (4.9): Considered an indirect regional risk for facilities located in the Paterna area.
  • Tsunami (4.6): A regional risk factor that is non-material for facilities situated several miles inland.
  • Drought (4.4): Managed through modern, water-efficient cooling systems that minimize impact on local resources.
  • Earthquake (2.9): Seismic activity remains low, ensuring the structural integrity of local data center facilities.
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