The data centre markets in Madrid and Barcelona are experiencing unprecedented growth, positioning Spain as a rising powerhouse in Europe’s digital infrastructure landscape. A newly released Madrid + Barcelona Data Centre Market Report from Structure Research highlights the driving forces behind this surge, with hyperscale cloud expansion and subsea connectivity transforming the region into a major global interconnection hub.
Madrid’s Data Centre Boom: A Hyperscale Powerhouse in the Making
Madrid has emerged as a critical hub for hyperscale data centres, with major cloud providers—including AWS, Microsoft, Google, and Oracle—investing heavily in the region. According to Structure Research, Madrid’s data centre capacity is set to skyrocket, reaching 1GW by 2030—a staggering sevenfold increase from 2024 levels.
Fueling this growth is the surging demand for colocation services, projected to reach €413 million by 2025, growing at an impressive 36% CAGR over the next five years. This expansion is driven by the rapid adoption of AI workloads, increasing enterprise cloud adoption, and strategic investments in the region’s digital infrastructure.
However, power constraints pose a significant challenge. Limited energy availability has delayed several projects, causing some demand to shift to alternative markets like Milan and Zaragoza. Despite these hurdles, Madrid remains a focal point for hyperscale development, with AI infrastructure providers such as CoreWeave actively investing in the region due to its lower power costs and strong renewable energy capabilities.
Barcelona: Iberia’s Rising Connectivity Hub
While Madrid leads in hyperscale expansion, Barcelona is carving out its place as a strategic connectivity hub. The city’s data centre market is forecasted to grow fivefold, reaching 225MW by 2030. A key driver behind this growth is the increasing number of subsea cable landings, which are enhancing intercontinental connectivity and reducing latency for businesses operating across Europe, Africa, and the Americas.
Barcelona is now emerging as a strong alternative to Marseille, traditionally Europe’s dominant subsea cable hub. With investments from Google Cloud and other key players, the city is positioning itself as a vital interconnection point, supporting the growing demand for high-speed, low-latency digital services.
Subsea Connectivity: Strengthening Iberia’s Global Influence
The Iberian Peninsula is rapidly becoming a global digital gateway, thanks to strategic subsea cable deployments. Key projects such as 2Africa, Medusa, and EllaLink are transforming Spain’s connectivity landscape, enhancing its role in linking Europe with Africa and the Americas.
These high-capacity cables are not only diversifying connectivity routes but also strengthening Spain’s position as a top-tier interconnection market. With Barcelona emerging as a critical subsea landing point, alongside established hubs like Lisbon and Marseille, the region is witnessing a new era of digital transformation.
Challenges and Market Dynamics
Despite its rapid ascent, the Madrid and Barcelona data centre markets face notable obstacles. Madrid’s power allocation bottlenecks and Spain’s complex permitting processes have slowed down certain expansion plans. With demand currently outpacing supply, the market remains a seller’s market in the short term, offering lucrative opportunities for investors and service providers.
The Future of Spain’s Data Centre Ecosystem
The Structure Research report underscores the immense potential of Madrid and Barcelona in the evolving European data centre landscape. Hyperscale cloud growth, AI-driven workloads, and subsea connectivity advancements are cementing Spain’s status as a digital infrastructure leader.
For enterprises, cloud providers, and investors looking to tap into Europe’s expanding digital economy, Madrid and Barcelona represent key strategic markets poised for continued acceleration in the coming years.
For more insights, visit Structure Research and for access to the full Madrid + Barcelona Data Centre Market Report.
