The fever of digitization and the increasingly insatiable demand for data storage have marked a new niche in the Spanish real estate market: data centers. With the infrastructure needed to manage large volumes of information, these technological areas are turning into goldmines for investors. With the arrival of tech giants and expansions in infrastructure, Spain starts to position itself as one of the key poles for digital development in Europe.
Data centers on the rise in Spain
This is because, starting from the digital transformation of banking sectors, the demand for data centers is very exponential in nature, up to the education sector. It is here that firms like Microsoft have committed to expanding their infrastructure in the country.
Recently, Microsoft announced the opening of 'Spain Central', a new cloud region located in the Community of Madrid. This infrastructure-in the top five in the European ranking- is made up of three intercommunicating availability zones, ensuring high availability and continuity of services. What's more, it holds the most advanced capabilities for Europe in generative AI: 'Spain Central'. It reinforces Spain's status as a nerve center in technological innovation.
It is already an active cloud region in operation, apart from others that host BBVA, Banco Santander, CaixaBank, Repsol, Telefónica, and Mutua Madrileña. On one side, such growth cements Spain's position as a digital pole; on another, it does with real economic impact in investment at $2.1 billion between 2024 and 2025.
A driver for the economy
The financial impact of data centers in Spain is intense: according to statistics from Spain DC, the country should expect an infusion of about €8 billion in direct investment over the next two years. Besides, the extension of digital infrastructure could add up to €37.8 billion to the GDP of Spain by 2026.
Concerning job creation, Microsoft estimates that its new cloud region could potentially create up to 77,000 jobs between 2024 and 2030, in return giving a positive impact on the country's GDP valued at €10.7 billion. Google is contributing by no little measure to this growth, projecting as many as 13,700 new jobs in Spain related to its infrastructure in the region.
This investment boom does not come exclusively from U.S. companies. OVHcloud recently opened its first Local Zone in Madrid, enabling its clients to benefit from all public cloud solutions with minimal latency. Meanwhile, Equinix has announced plans for a second data center in Barcelona. The aim is to position the Catalan capital as a key communications nexus for Europe, Africa, and the Middle East.
Investment Opportunities in Real Estate
Data center growth has popped up an excellent opportunity for real estate investors. Whatever be the size, data centers require large space, which means acquisition and construction of property suitable to support advanced technological infrastructure. Some of the major benefits of investing in data centers include:
Stability and Sustained Demand: Demand for data centers is expected to rise with increasing use of data and digitization, hence proving to be a long-term investment with stable contracts.
Diversification: Technological infrastructure investment offers diversification as against traditional real estate.
Place of strategic enclaves: Spain, between Europe, Africa, and America, represents a privileged area for the development of data centers, making investments in this area very attractive.
Key projects in Spain
Along with Microsoft's Spain Central, Digital Realty is developing a data center in Madrid called MAD4, boasting 30 MW of electrical capacity to extend its presence in Spain. Such infrastructures make the country stronger in appealing to becoming a strategic point for global data management and distribution.
Meanwhile, Data4 has commissioned 150 MW of IT power in Spain in four and a half years of operations, and will expand to 70 MW at the newly opened San Agustín del Guadalix campus.
It also intends to participate in the growth within the Aragon region, building a new data center campus that will be of service to Spain alone but also to companies across Southern Europe.
Economic and employment impact Data center development brings nothing but innovation and technological advancement; however, it contributes directly to the economy by creating new jobs. According to one report presented by KPMG, the operations of data centers such as Equinix have generated around €205 million in economic output and have equally contributed €70 million to household incomes within Spain.
Building and operating data centers creates highly qualified jobs in the Industrial and Telecommunications Engineering sectors. On the other hand, one of the major obstacles to be met is that of talent: according to Spain DC estimations, in the following two years, the sector will request 2,000 more professionals to cover the demand.
Conclusion:
An opportunity not to be missed Investment in data centers is one of the mainstays for real estate and technology in the coming years, since it offers long-term stability and allows investors to participate in developing a digital infrastructure that will be decisive for the future of the country. To learn how to fully leverage this increasingly growing trend, and also to explore more opportunities in the sector of data centers, Biznexus Consulting can connect the investor with only the best opportunities in this market. Don't let this be a missed opportunity in this digital transformation
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