Spain Data Center Market - Investment Analysis & Growth Opportunities 2024–2029

MARKET OUTLOOK

The Spain data center market size will witness investments of USD 2.85 billion by 2029, growing at a CAGR of 6.99% during the forecast period. Spain is witnessing substantial growth in the data center sector, with local and international companies owning data centers. Although not part of the FLAP-D markets, Spain plays a significant role in the European data center sector. As the FLAP-D markets become crowded, hyperscale operators will invest substantially to expand their data center operations across the Spain data center market. Moreover, the growth in cloud regions is boosting the country's colocation demand.​

The Spain data center market is growing rapidly due to the increased demand for hyperscale cloud services from major platforms such as AWS, Google Cloud, and Oracle Cloud. Furthermore, the upcoming colocation capacity in the market is around 600 MW, which is contributed by close to 25 data center projects. These capacities are either under construction or at an announced or planned stage.

Madrid is emerging as a popular investment destination for constructing data centers in the Spain data center market. Form8tion, a company under Thor Equities, has initiated the first phase of the "Madrid One" Campus, expected to be operational by the end of 2024. Also, Spain actively supports the data center sector through initiatives like the 2025 Digital Spain Plan. Coupled with its capacity for renewable energy and recognition as a cloud region by major tech companies, Spain is an attractive destination for investments in data centers.

KEY HIGHLIGHTS

• Artificial Intelligence actively enhances the Spanish industry by making swift decisions, operating 26/7, and automating tasks. This has led to increased data generation and increased demands for data centers.
• The growing demand and the emergence of large-scale operations are anticipated to significantly increase colocation capacity in Spain within the next five years.
• Companies establishing cloud regions in Spain are expected to boost the demand for data centers, driven by the need for localized, efficient data processing and storage solutions, thereby enhancing Spain's digital infrastructure.
• Madrid, alongside the FLAP markets (Frankfurt, London, Amsterdam, and Paris), competes well regarding installed power. The growth in Madrid's capacity aligns with or exceeds the growth rates observed in these major European data center markets.
• The increasing demand and the emergence of large-scale operations are projected to rapidly expand colocation capacity over the next five years in Spain. The competitive scenario in the Spain data center industry has attracted global operators looking to leverage the lucrative opportunities presented by the region's growth potential.
• Microsoft is enhancing its presence in Spain through a new project, a data center campus in Aragon. This expansion will strengthen Microsoft's capability to provide European businesses and organizations with intelligent cloud services, including Microsoft Azure and Microsoft 365.

WHY SHOULD YOU BUY THIS RESEARCH?

• Market size available in the investment, area, power capacity, and Spain colocation market revenue.
• An assessment of the data center investment in Spain by colocation, hyperscale, and enterprise operators.
• Investments in the area (square feet) and power capacity (MW) across cities in the country.
• A detailed study of the existing Spain data center market landscape, an in-depth market analysis, and insightful predictions about market size during the forecast period.
• Snapshot of existing and upcoming third-party data center facilities in Spain
• Facilities Covered (Existing): 52
• Facilities Identified (Upcoming): 24
• Coverage: 16+ Cities
• Existing vs. Upcoming (Area)
• Existing vs. Upcoming (IT Load Capacity)
• Data Center Colocation Market in Spain
• Colocation Market Revenue & Forecast (2023-2029)
• Retail & Wholesale Colocation Revenue (2023-2029)
• Retail & Wholesale Colocation Pricing
• The Spain data center market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
• A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
• Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.
• A transparent research methodology and the analysis of the demand and supply aspects of the industry.

VENDOR LANDSCAPE

• Some of the key colocation investors in the Spain data center market in 2023 are Nabiax, Form8tion, DATA4, Equinix, Iron Mountain, Merlin Properties, NTT Global Data Centers, CyrusOne, and others.
• In November 2023, AWS achieved sustainable data center cooling in 20 facilities by utilizing treated sewage, a part of their water administration program since 2020. This initiative in Spain aligns with environmental goals.
• Equinix is building a new data center in Barcelona to boost the city's role as a vital hub connecting Europe, Africa, and the Middle East. This move enhances digital connectivity.
• CyrusOne is constructing a two-story building, MAD1, boasting a total IT capacity of 18 MW. It will be Spain's inaugural data center with BREEAM certification upon completion.
• There is an ongoing trend of selecting locations beyond Madrid and Barcelona for significant data center projects. Examples include the 100 MW IT project of Merlin Properties in Vitoria and an investment worth 2.9 billion euros (USD 3.16 billion) by Box2Bit in two data centers in Castilla-La Mancha. This diversification extends to Bilbao, Valencia, and Toledo, with notable investments by Meta and Amazon Web Services (AWS).

EXISTING VS. UPCOMING DATA CENTERS

• Existing Facilities in the Region (Area and Power Capacity)
• Madrid
• Other Cities
• List of Upcoming Facilities in the Region (Area and Power Capacity)
• Madrid
• Other Cities

REPORT COVERAGE:

This report analyses the Spain data center market share. It elaboratively analyses the existing and upcoming facilities and investments in IT, electrical, mechanical infrastructure, general construction, and tier standards. It discusses market sizing and investment estimation for different segments. The segmentation includes:

• IT Infrastructure
• Servers
• Storage Systems
• Network Infrastructure
• Electrical Infrastructure
• UPS Systems
• Generators
• Switches & Switchgears
• PDUs
• Other Electrical Infrastructure
• Mechanical Infrastructure
• Cooling Systems
• Rack Cabinets
• Other Mechanical Infrastructure
• Cooling Systems
• CRAC and CRAH
• Chillers
• Cooling Towers, Condensers and Dry Coolers
• Economizers & Evaporative Coolers
• Other Cooling Units
• General Construction
• Core & Shell Development
• Installation & Commissioning Services
• Building & Engineering Design
• Fire Detection & Suppression Systems
• Physical Security
• Data Center Infrastructure Management (DCIM)
• Tier Standard
• Tier I & Tier II
• Tier III
• Tier IV
• Geography
• Madrid
• Other Cities

VENDOR LANDSCAPE

• IT Infrastructure Providers: Arista Networks, Atos, Broadcom, Cisco Systems, Dell Technologies, Fujitsu, Hewlett Packard Enterprise, IBM, Juniper Networks, Lenovo.
• Data Center Construction Contractors & Sub-Contractors: ACS Group, AEON Engineering, Arup, ARSMAGNA, CapIngelec, Ramboll, Ferrovial, IDOM, ISG, Hill International, Mercury, PQC, Quark.
• Support Infrastructure Providers: ABB, Caterpillar, Cummins, Delta Electronics, Eaton, GESAB, Legrand, Piller Power Systems, Rittal, Rolls-Royce, Schneider Electric, STULZ, Vertiv.
• Data Center Investors: Aire Networks, DATA4, Digital Realty, Edgeconnex, Equinix, NTT Global Data Centers, and Nabiax.
• New Entrants: AQ Compute, CyrusOne, Merlin Properties, Microsoft, Iron Mountain, Form8tion Data Centers (Thor Equities).