Data centres find a new European market. Spain is emerging as one of the most wanted destinations for data centre development, bolstered by its strategic infrastructure and the influx of submarine fibre optic cables. The three major data centre markets, Madrid, Barcelona, and Aragón, which currently have a combined installed IT capacity of 314 MW, with an additional 249 MW expected from new projects by 2026, according to a recent Data Centre Snapshot report by consulting firm Colliers.

With an average investment estimated at around ten million euros per MW of IT capacity, this translates to approximately 2.5 billion euros at current prices. The report indicates that installed capacity in the Community of Madrid reached 164 MW in the third quarter of 2024, with another 198 MW expected over the next two years. By 2030, data centre capacity could increase nearly fivefold, rising from 164 MW to 792 MW.

Barcelona has seen a 68% surge in its installed IT capacity from January to September, driven by the Merlin data centre and the launch of a new Equinix facility (Merlin is Spain’s most valuable real estate company). An additional 51 MW is anticipated over the next two years.

Colliers emphasises that Barcelona is now on the radar of major international operators, thanks to the arrival of a submarine cable at Sant Adrià del Besòs (Barcelona) and Madrid’s current electrical capacity constraints. In this context, Barcelona is viewed as a viable alternative to meet these operators’ demands in the Mediterranean region. Madrid and Barcelona are set to add 249 MW of IT capacity from new projects by 2026.

Aragon: “The Virginia of Europe” for data centres

In the Aragón region, the current operational capacity stands at 108 MW, following the launch of the first phase of Amazon’s (AWS) data centres. The region’s pipeline is projected to reach approximately 1,800 MW once Microsoft and AWS finalise their cloud projects, although timelines here are expected to be longer.

The Aragón region has become a sweet spot for data centres. It has an attractive location between Barcelona and Madrid, while at the same time being close to France. Furthermore, it has a wide availability of large but also flat terrains, suitable for building these massive infrastructures. Moreover, Aragón is the fourth region in Spain that produces more solar energy and is the top producer per square kilometre, according to a 2024 study from OBS Business School.

Over the next decade, the total announced investment by hyperscale operators (AWS and Microsoft) in Aragón exceeds 25 billion euros.

José María Guilleuma, Director of Data Centers at Colliers for the Iberia region, adds that the availability of large plots of land, short- to medium-term electrical supply, and Spain’s leadership in renewable energy production, which accounts for 13% of the country’s total renewable energy, are all contributing to Aragón’s growing reputation as “the Virginia of Europe.” This has led to a steady influx of significant investments, he explains.

“Aragon is the apple of everyone’s eye. It has everything”, Guilleuma highlights.