SPAIN DATA CENTER MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2025-2032)

Spain Data Center Market Size and Forecast – 2025-2032

The Spain data center market is estimated to be valued at USD 2.95 Bn in 2025 and is expected to reach USD 6.08 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 10.9% from 2025 to 2032.

Key Takeaways of the Spain Data Center Market

• The enterprise data center segment leads the market holding an estimated share of 38.9% in 2025.
• The hardware segment is projected to dominate with a share of 47.8% in 2025.
• The network infrastructure segment is estimated to lead the market with a share of 81.4% in 2025.

Market Overview

The market is seeing growth because of the fast adoption of edge computing, the growing need for low-latency applications, and a lot of investments in renewable energy to power sustainable data centers. Also, advancements in AI and IoT technologies are adding to increased data generation, necessitating strong data center infrastructure. Growing concerns over data security and regulatory compliance also push companies to invest in advanced, energy-efficient, and geographically distributed data center facilities, adding to market expansion.

Current Events and their Impact

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Segmental Insights

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Spain Data Center Market Insights, by Data Center Type – Enterprise Data Centers Segment Leads the Market Driven by Customization and Security Needs

The enterprise data center segment is expected to hold the largest share of 38.9% in the Spain data center market in 2025. This growth is because of the increasing demand from large corporations and government organizations for tailored IT infrastructure that fulfils their unique operational, security, and compliance needs. Enterprise data centers give organizations the flexibility to design and manage dedicated facilities optimized for their workflows, data sensitivity, and scalability demands. Particularly in Spain, with its growing focus on data sovereignty and strict adherence to the European Union’s GDPR regulations, companies prioritize on-premises or private data center solutions where they can have greater control over data governance and cybersecurity.

Also, the growing complexity of business applications, and the rise in data-intensive activities like big data analytics and AI, adds the need for customized high-performance computing environments that enterprise data centers provide. Unlike shared or multi-tenant facilities, these centers enable precise allocation of resources, enhancing operational efficiency and reliability. Also, many Spanish enterprises are investing in upgrading legacy infrastructure in their data centers to support hybrid cloud strategies, which mix private enterprise solutions with cloud capabilities. This hybrid approach ensures low latency, improved data protection, and smooth integration with cloud services.

The importance of uptime and disaster recovery in sectors like finance, healthcare, and manufacturing also makes demand for enterprise data centers, as these infrastructures allow for redundancy and backup systems. In addition, with digital transformation initiatives growing in Spain, enterprises see in-house data centers as strategic assets to add to innovation, providing the agility to deploy emerging technologies fast without depending on third-party providers. This mix of customization, security, compliance, and performance indicate the strong position of enterprise data centers in the market.

Spain Data Center Market Insights, by Component - Hardware Segment Dominates Due to Infrastructure Modernization and Performance Optimization

The hardware segment is expected to hold the largest share of 47.8% in 2025, showing the role physical infrastructure plays in data center operations. Innovations in server architectures, storage devices, networking equipment, and power and cooling systems are very important to improving efficiency, reducing downtime, and controlling operational costs. These hardware upgrades are especially needed in Spain where organizations are investing in sustainable and energy-efficient technologies to address environmental regulations and corporate responsibility goals.

The push toward high-density computing and virtualization in Spanish data centers also makes demand for cutting-edge hardware that can support such advancements. This includes state-of-the-art processors, solid-state drives, and sophisticated network switches. Also, as enterprises increasingly adopt hybrid and multi-cloud strategies, there is a lot of requirement for hardware that supports smooth integration between physical and virtual environments.

To add, Spain’s focus on digital infrastructure development at regional and national levels pushes investments in strong hardware platforms to support emerging applications like IoT, real-time analytics, and AI-driven operations. Investments in hardware redundancy and disaster recovery systems also grow because maintaining business continuity has become a non-negotiable priority across multiple sectors. Overall, the drive for infrastructure modernization and superior performance optimization continues to make hardware the leading component in the Spain data center ecosystem.

Spain Data Center Market Insights, by Application – Network Infrastructure Segment Peaks as the Backbone of Evolving Connectivity Needs

The Spain data center market sees network infrastructure holding an estimated share of 81.4% in the market in 2025 because of the increasing need for high-speed, low-latency connectivity and secure data transfer capabilities. Increasing digitalization, cloud adoption, and mobile device penetration needs strong network solutions that can handle huge data traffic. The popularity of 5G technology in Spain is making data centers upgrade their network infrastructures to support faster communications, edge computing, and real-time service delivery.

Network Infrastructure plays a big role in interconnectivity between data centers, cloud platforms, and end users. The focus on hybrid cloud adoption in Spanish enterprises requires advanced network architectures that can handle orchestrate hybrid workloads securely and without performance degradation. Technologies like Software-Defined Networking (SDN) and Network Function Virtualization (NFV) have become popular, offering improved flexibility, scalability, and management that traditional network configurations cannot achieve.

Also, the rise in cybersecurity threats pushes organizations to invest in network infrastructures with built-in security capabilities like firewalls, intrusion detection, and encrypted data pathways. Spain’s position as a digital gateway between Europe, North Africa, and Latin America also makes advanced network infrastructures more important to support cross-border data flows with minimal latency.

Impact of AI on the Spain Data Center Market

Artificial intelligence (AI) is making the demand for high-density computing and advanced cooling solutions. Training large language models and running inference workloads need racks that can support 30 kW or more, far above the traditional 5–10 kW average. This has pushed operators to invest in liquid cooling technologies, GPU-optimized server clusters, and power infrastructure upgrades. IBM has opened a Quantum & AI Innovation Center in Madrid in partnership with the Spanish government to grow AI research, which creates the need for low-latency, high-performance data center capacity to support model training and enterprise AI deployments.

Market Players, Key Development, and Competitive Intelligence

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Key Developments

• On September 22, 2025, Digital Realty, a major American data-infrastructure company, announced plans to build a new data center in Sant Adrià de Besòs (Barcelona), a project representing an investment of USD 268.9 million (€230 million). The facility is expected to begin delivering services in 2026, after completion of its technical phases and operational tests.
• In August 2025, U.S. asset manager, Blackstone, announced plans to expand its project to build data centers in Spain's Aragon, with an additional investment of USD 5.03 billion (4.3 billion euros) in the region striving to become a major cloud computing hub.
• In January 2025, Spanish oil company, Repsol (REP.MC), opens new tab plans to invest USD 4.2 billion (4 billion euros) in data centers. The planned data centers would be located near the northern Spanish city of Zaragoza.
• In May 2024, Amazon Web Services (AWS) announced plans to invest USD 18.35 billion (€15.7 billion) in Spain in its AWS Europe (Spain) Region, which will support an estimated 17,500 full-time equivalent jobs in local businesses on an annual average basis, and will contribute an estimated USD 25.25 billion (€21.6) billion to Spain’s gross domestic product (GDP) through to 2033.

Top Strategies Followed by Spain Data Center Market Players

• Established players dominate the market because of big investments in research and development (R&D), aiming to innovate and deliver high-performance data center products and solutions.
  • Digital Realty has been investing in AI-driven energy management systems and high-density cooling solutions for its Madrid and Barcelona campuses.

• Mid-level players in the Spain data center market focus on delivering cost-effective solutions that offer a balance between quality and affordability.
  • Nabiax targeted small-to-medium enterprises in Madrid and Valencia with competitively priced colocation services, offering flexible rack leasing and bundled managed services to attract local business clients.

• Small-scale players in the Spain data center market focus on niche segments with specialized features or highly innovative products.
  • io focuses on high-performance cloud hosting and private micro-data centers for SMEs, offering highly customized virtual environments and edge deployments for latency-sensitive applications.

Market Report Scope

Spain Data Center Market Report Coverage

Market Dynamics

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Spain Data Center Market Driver – Large Hyperscaler Investments Driving Capacity and Spend

The Spain data center market is experiencing a lot of momentum because of huge investments from global hyperscale cloud providers. These hyperscalers are growing their infrastructure footprint to meet the growing demand for cloud computing, storage, and advanced digital services. This increases the number of data center facilities and improves their technological sophistication, including energy-efficient designs and advanced cooling systems to support higher densities. This wave of investment is catalyzing further development in the entire ecosystem, attracting ancillary players like network providers and colocation operators who benefit from the upgraded infrastructure. As hyperscalers add to expansion with multi-megawatt capacities, their focus on Spain as a connectivity hub makes the country’s position stronger in Europe’s digital infrastructure landscape. Consequently, these investments are important in shaping both capacity and overall spend patterns within the market.

Spain Data Center Market Opportunity - Renewable-Powered Data Center Campuses

The Spain data center market is expected to see a lot of growth because of the increasing demand for sustainable and energy-efficient infrastructure. The development of renewable-powered data center campuses is a big opportunity. Spain’s abundant renewable energy resources, including solar, wind, and hydropower, give an advantage for data center operators that want to reduce carbon footprints and adhere to strict environmental regulations. With the European Union’s aggressive decarbonization targets and Spain’s commitment to achieving 74% renewable electricity generation by 2030, data centers powered by clean energy are will attract a lot of investment. These renewable-powered campuses offer cost advantages over the long term because of lower energy expenses, and also improve corporate social responsibility profiles, appealing to environmentally conscious enterprises and cloud service providers. Also, the country’s favorable climate conditions add to energy-efficient cooling solutions, reducing operational costs. Government incentives and subsidies for promoting renewable energy infrastructure add to the viability of such projects, pushing public-private partnerships and innovative financing models. The use of smart grid technology and battery storage in these campuses adds to energy reliability and efficiency.

Analyst Opinion (Expert Opinion)

• The growing adoption of AI, machine learning, and GPU-intensive workloads is pushing operators to invest in high-density racks, liquid cooling, and advanced power distribution systems. Spain’s major data centers in Madrid and Aragon are increasingly being retrofitted or built with these technologies to support hyperscaler and enterprise AI demands.
• Edge data centers are becoming a big growth driver, especially in regions outside Madrid and Barcelona. With Spain’s 5G rollout and low-latency service needs for industrial IoT and autonomous applications, smaller and distributed micro-data centers will likely become popular.
• Renewable energy integration, liquid cooling, and AI-driven energy management are very important for competitive positioning. Initiatives like Digital Realty’s PPAs in Spain and Schneider Electric’s modular green data centers demonstrate how operators use sustainable technologies to attract environmentally conscious clients while reducing operational costs.

Market Segmentation

• Data Center Type Insights (Revenue, USD Bn, 2020 - 2032)
  • Enterprise Data Center
  • Cloud Data Center
  • Multi-Tenant Data Centers/Colocation Data Centers
  • Edge Data Center
  • Micro Data Center
• Component Insights (Revenue, USD Bn, 2020 - 2032)
  • Hardware
  • Software
  • Services
• Application Insights (Revenue, USD Bn, 2020 - 2032)
  • Network Infrastructure
  • Servers
  • Storage
• End User Insights (Revenue, USD Bn, 2020 - 2032)
  • BFSI
  • Healthcare
  • IT & Telecom
  • Retail & Consumer Goods
  • Energy & Utilities
  • Government & Public Sector
  • Others
• Key Players Insights
  • Adam
  • com, Inc
  • Apple Inc.
  • Equinix Inc
  • ZTE Corporation
  • Google
  • Masmovil
  • Iberdrola, S.A
  • IBM
  • Infineon Technologies AG
  • Interxion
  • Iron Mountain
  • Meta Platforms, Inc
  • Microsoft
  • NTT Communications Corporation
  • Sarenet

Sources

Primary Research Interviews

Stakeholders

• Data Center Operators (e.g., AWS Spain, Microsoft Azure Iberia, Google Cloud Spain)
• Colocation Service Providers (e.g., Nabiax, Interxion Spain)
• IT Infrastructure Manufacturers (e.g., Schneider Electric, Vertiv, Rittal, HPE, Dell Technologies)
• Telecom Companies involved in data center operations (e.g., Telefónica, Vodafone Spain)
• Renewable Energy Providers collaborating on green data centers (e.g., Iberdrola, Acciona)
• Sustainability Experts and Energy Efficiency Consultants focusing on data centers

Databases

• European Data Infrastructure Database (EDID)
• Iberian Cloud & Data Center Registry (ICDCR)
• Eurostat
• OECD ICT Statistics

Magazines

• Data Center Dynamics (DCD) Europe
• Infrastructure Today Spain
• Cloud & Server Magazine
• IT Facility Management Monthly

Journals

• Journal of Data Center Engineering
• International Journal of Cloud Infrastructure
• Energy Efficiency in Computing Journal
• Journal of High-Performance Computing and Networking

Newspapers

• El País Tecnología
• Expansion (Spain) – Technology Section
• Cinco Días – IT & Infrastructure
• The Madrid Economic Review

Associations

• Spanish Data Center Association (ASDC)
• European Data Center Association (EUDCA)
• International Telecommunication Union (ITU) – Spain Chapter
• Green Data Center Alliance (GDCA)
• Cloud Infrastructure Federation Europe (CIFE)

Public Domain Sources

• Eurostat
• United Nations Economic Commission for Europe (UNECE)
• World Bank – Spain Infrastructure Reports
• ResearchGate (data center and cloud computing publications)
• Instituto Nacional de Estadística (INE, Spain)

Proprietary Elements

• CMI Data Analytics Tool
• Proprietary CMI Existing Repository of information for last 8 years