The demand for data centres is growing rapidly worldwidem driven by the booming AI industry and it’s insatiable demand for data processing power, and Spain is becoming a key player in the data center industry. Big tech companies like Amazon, Microsoft, Google, and Meta are investing millions of euros in Spain’s infrastructure. This is great news not only for tech enthusiasts but also for local communities, as these investments create jobs and boost the economy.
Why Spain?
Spain has a strategic location and offers lower energy and land costs than cities like Frankfurt, London, or Paris. These cost advantages make Spain an attractive destination for data centers.
| City | Energy Cost | Land Cost |
|---|---|---|
| Spain (Madrid) | Lower | Lower |
| Frankfurt | Higher | Higher |
| London | Higher | Higher |
Spain also benefits from a growing green energy sector, with renewable energy like solar power being used to fuel many data centers. This aligns with Spain’s National Integrated Energy and Climate Plan, which expects energy supply to keep growing by 2030.
Growth in Numbers
In 2022, Spain had 150 MW of installed power in its data centers. By 2023, this grew to 200 MW, and forecasts suggest over 900 MW in the next five years. Madrid leads the way in colocation projects, while Aragon is the hotspot for hyperscale data centers, especially with projects from Amazon Web Services and Microsoft.
Green Energy and PPAs
Data centers in Spain are helping the renewable energy market by using Power Purchase Agreements (PPAs). These agreements help stabilize energy prices and prevent “price cannibalization”—a situation where energy prices drop too low because of an oversupply of solar power during the day.
Some key PPAs in Spain include:
- Apple and Ib Vogt (105 MW)
- Repsol and Microsoft (230 MW)
- Amazon and Grenergy (469 MW)
By partnering with data centers, these companies are helping to support Spain’s green energy goals while ensuring a stable energy market.
Challenges Ahead
While the future of data centers in Spain looks bright, there are still challenges. The Spanish energy transport network needs improvements to keep up with the growing energy demand. Spanish data center associations have raised concerns about this issue, and the government is reviewing investment limits to support infrastructure upgrades.
If these improvements happen, Spain could further solidify its position as a leader in the data center market.
Local Jobs and Economic Impact
The rise of data centers is a win for local communities. Data center projects create many jobs, from construction to tech positions. For example, Amazon and Microsoft’s projects in Aragon are expected to create thousands of local jobs. This boosts the economy, not just in cities like Madrid, but also in smaller regions like Aragon.
By building more energy-efficient, renewable-powered data centers, Spain is also creating new opportunities for businesses in the green energy sector.
Conclusion
The growth of data centers in Spain is not just about technology. It’s about local jobs, renewable energy, and a stronger economy. With continued investment and infrastructure improvements, Spain’s data center market is set to thrive.
For more on renewable energy and how it supports the economy, check out this Energy & Climate Plan!
