Spain's rise as a European data centre market

The number of data centres being built continues to rise in Europe. As such, new locations are emerging as key hubs for digital infrastructure serving this continent. Spain, once seen as a secondary market, has become a leading location in Southern Europe. Madrid, in particular, has become the focal point for new capacity, with several hundred megawatts already operating and with larger campuses in the pipeline.  

The country's appeal is straightforward. Spain benefits from its location near the rest of Europe and the coast, as well as its ample available land. The government has also created clear permitting frameworks, such as the Guía para la implantación de centros de datos, providing developers with more certainty in planning. As such, locations like Madrid, as well as other clusters such as Aragon, Barcelona, Bilbao, and Malaga, offer an attractive choice for data centre operators. We are already seeing many clients look to Spain to play a role in their future data centre portfolios.  

Geography, land availability, and temperature

Spain sits at a crossroads of Europe, Africa, and the Americas. This position makes it one of the most strategically connected digital gateways in the region. A network of subsea cables connects Spain to other continents. This is through regions like Bilbao, Valencia, Barcelona, and Cadiz. Having this infrastructure in place reduces latency and improves network resilience, both of which are vital for hyperscale, cloud, and AI operators. It is because of major international projects such as the Grace Hopper, 2Africa, and Marea cables that Spain has benefited from enhanced global connectivity to the European market.  

Outside of connectivity, Spain offers the land needed for large-scale data centre developments. Unlike Tier 1 locations like London or Frankfurt, where space can be hard to procure, Spain still provides available land and favourable zoning with comparatively lower costs. Regional cities, including Zaragoza, Toledo, and Malaga, are emerging as viable locations for multi-phase data centre campuses. They offer the space necessary, whilst also having the power availability and access to a skilled local workforce needed to construct the facilities.

Lastly, the country's climate provides an advantage to some elements of the design. While warmer than Northern Europe, Spain is a large country with varied topography, creating distinct microclimates. Particularly in Northern or inland regions, the climate can be cool and dry enough to support free-cooling for much of the year. This reduces the energy demand of the mechanical cooling systems. Additionally, design strategies such as indirect evaporative cooling, heat recovery systems, and solar shading are being used more in Spain to meet sustainability targets. These design choices can be used in the Southern regions too and still meet sustainability and efficiency targets.

The permitting strategy for Spain

Unlike other regions, Spain's approach to data centre permitting has become an advantage for the area. Whilst complicated, compared to other European markets, some of Spain's regional governments have developed mechanisms to accelerate the delivery of data centres.  

Madrid, in particular, has become a popular location for operators. In 2023, Madrid introduced its Guía para la impantación de centros de data en la Comunidad de Madrid. This guides the design and licensing requirements needed to secure approval for a data centre build, thereby providing operators with certainty. The framework formalises how large-scale facilities engage with local utilities and environmental authorities, thus simplifying the process from conception to construction. Additionally, Madrid is close to Spain's 400kV transmission network and urban substations, which provide stable, high-capacity grid connections for data centre builds.  

Other regions have followed this approach, like Aragon. They have used their Proyecto de Interés General de Aragón (PIGA) process to accelerate the delivery of data centres deemed important to the region. This has been beneficial to hyperscalers who have grown in presence in the area over the last few years. The benefit of PIGA is that it brings multiple approval processes into a single administrative process. This ultimately reduces risk during application and mitigates the risk of delays. By aligning data centres with national and regional objectives, the governments in Spain have made the region popular among many data centre operators looking to enter the market quickly.  

Renewable energy

One of the biggest focus points in the design of data centres is renewable energy generation and the creation of sustainable, efficient cooling systems. Focusing first on the renewable energy generation, Spain is a leader in the European market; over 50% of the country's electricity now comes from renewable sources. These are predominantly wind, solar and hydro forms of energy. This provides operators with a stable, low-carbon energy supply to power their data centres. The abundance of clean energy not only helps meet sustainability targets but also economic ones. Given the amount of renewable energy, there is long-term price stability, which helps Spain keep energy costs low for data centres.  

The country's renewable energy generation is also spread across the region, rather than localised, as in some countries. Regions like Aragon, Castilla-La Mancha, and Andalusia have become hubs for solar and wind power, while cities such as Madrid and Catalonia benefit from advanced grid interconnections that enable the efficient transmission of green energy to high-demand areas. Spain also has a National Energy and Climate Plan (PNIEC), which has set a target of 81% renewable electricity by 2030. This, combined with the government's incentives for green hydrogen production, electrification, and district heating systems, ensures alignment with the EU's broader sustainability targets.  

Why you should consider Spain now

Spain has moved beyond its reputation as a secondary market in Europe. It now sits among the most significant countries in the region, and we've seen many organisations move there to take advantage of it. Its strong renewable energy base, international connectivity, and supportive permitting landscape have created a stable foundation for long-term growth. Madrid, in particular, is leading the country, though we have also seen interest from clients in areas like Aragon and Catalonia. Given the growth of hyperscale and AI-ready facilities, looking at previously considered secondary locations, such as Spain, demonstrates that scalability and resilience can be achieved outside traditional hubs. So, when looking at a new region to expand into, Spain might have the elements in place to support your new build.