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Data Centers in Valencia

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Valencia – Strategic Gateway to the Mediterranean

Valencia is emerging as a compelling Tier II data center market in Spain, offering a strategic alternative to the congested Madrid hub. It is an excellent choice for organizations requiring low-latency connectivity to Southern Europe and North Africa, or for those implementing disaster recovery solutions. The city's combination of competitive power costs, high renewable energy use, and direct access to subsea cable routes enhances application performance and supports sustainability goals.

Valencia: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBStrong national fiber; a secondary hub to Madrid for international traffic.
Direct Cloud On-Ramps0 — as of September 2025The nearest major cloud hub is Madrid; private network extensions are available.
Power Cost$0.11–$0.15 / kWh (Industrial)Sourced from a mix with over 56% renewables, as of August 2024.
Disaster RiskLow (2.6/10)Primary risks are flood-related, but overall exposure is minimal.
Tax IncentivesNoSpain does not currently offer specific tax breaks for data center investment.
Sales Tax21% VATThe standard national rate applies to equipment and services, as of September 2025.

Network & Connectivity Ecosystem

Valencia provides a solid connectivity foundation, though it relies on Madrid for access to the richest interconnection ecosystem. The city is home to 9 data centers operated by 3 providers, as of September 2025.

Carrier Density & Carrier Neutrality Carrier density is growing, with access to Spain's three national providers and a variety of regional and international networks. Carrier-neutral facilities offer the best options for building resilient, multi-carrier network architectures.

Direct Cloud On-Ramps There are no direct cloud on-ramps within Valencia's data centers, as of September 2025. Secure, private connections to cloud providers like AWS, Google Cloud, and Microsoft Azure are typically established via dedicated circuits to interconnection hubs in Madrid.

Internet Exchange Points (IXPs) Public peering is not a major feature of the Valencia market. Most traffic exchange occurs through private peering within local data centers or is routed through national exchange points like ESpanix in Madrid.

Bare Metal Bare metal server options are available in the Spanish market, providing dedicated compute for performance-sensitive workloads. Providers like Hivelocity and OVHcloud offer solutions that can be deployed in the region.

Power Analysis

Spain's power infrastructure is modern and increasingly green, providing a stable and cost-effective environment for data center operations.

Average Cost Of Power Industrial power costs in Spain typically range from $0.11 to $0.15 per kWh, as of August 2024. This competitive pricing, combined with a high percentage of renewable generation, can significantly lower the total cost of ownership for large deployments.

Power Grid Reliability The national power grid is well-engineered and reliable. Data centers in the Valencia region are typically located in industrial parks with access to redundant power feeds and substation diversity, ensuring high levels of uptime.

Market Access, Business & Tax Climate

Valencia's strategic location and business-friendly environment make it an attractive point of presence.

Proximity To Key Business Districts Data centers in Valencia are situated near key economic zones, including the Port of Valencia, one of the Mediterranean's busiest container ports. This proximity is ideal for logistics, manufacturing, and technology companies that require low-latency processing.

Regional Market Reach A deployment in Valencia provides excellent reach to Spain's third-largest metropolitan area, the Balearic Islands, and serves as a logical network gateway to North African markets via subsea cables.

Tax Advantage For Data Centers Spain does not offer specific tax incentives for the development or operation of data centers, as of August 2025. This creates a straightforward and predictable financial environment for all investors without complex eligibility requirements.

Natural Disaster Risk

Based on the INFORM Risk Index, Spain has an overall low-risk profile for natural disasters, with a score of 2.6 out of 10, as of September 2025. This score indicates a very stable physical environment for critical infrastructure.

The primary natural hazards to consider in the Valencia region, though still rated low on a global scale, include:

  • River Flood: The highest individual risk factor for the region.
  • Coastal Flood: A consideration for facilities located in low-lying coastal areas.
  • Tsunami: A low-probability event given the city's location on the Mediterranean.
  • Drought: A recurring environmental concern throughout Spain.
  • Earthquake: Seismic activity is minimal but present.
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