Data centers: Spain accelerates with €90 billion in projects
Last Updated on 3 December 2025 by Equipo Urbanitae
The rise of AI, accelerated digitalization, and the need for large-scale infrastructure to support all these advances have positioned the data center market as an attractive opportunity for national and international investors.
Although it may seem distant because traditionally these projects were located in Europe’s leading markets, known as “FLAP-D” (Frankfurt, London, Amsterdam, Paris, and recently Dublin), these regions are beginning to show energy and regulatory stability limitations. This situation has favored historically Tier II territories like Spain and Portugal, which today occupy a strategic position on the European data center map.
The reasons are multiple: international connectivity, available land, access to renewable energy, and a stable regulatory environment. In this context, major known operators or hyperscalers, such as Microsoft, Amazon, and Google; investment funds like Blackstone; energy companies like Iberdrola; and construction and real estate companies like ACS and Merlin are joining the investment wave and increasingly choosing the Iberian Peninsula as a destination.
According to the latest CBRE Data Center report, the Iberian market, including Spain and Portugal, has experienced sustained growth, with expansion rates above 25% annually in installed capacity. The consultancy also reports that over €90 billion is at stake in the next decade, with about 90% corresponding to the Spanish market, including ongoing and future projects.
Investment opportunities are significant: according to the Global Data Center Investor Intentions Survey, 95% of investors plan to increase their investment in the sector in 2025, and 41% will allocate over $500 million in equity, reflecting strong confidence in the data center market.
In Spain, the colocation system is prevalent. This is a shared data center model where different companies rent physical space, power, and connectivity to host their own servers and equipment. Within this model, the Madrid and Barcelona markets have experienced notable growth.
Madrid stands out as the main hub of the peninsula. According to the Madrid regional government, the region has 46 data centers, ranking first nationally. The community has around 200 MW of installed capacity and a development pipeline that could double its size in the coming years.
Barcelona and Lisbon, although smaller, also show positive trends, consolidating the Iberian Peninsula’s attractiveness as a reference destination for digital infrastructure investment.
Gigafactories and Hyperscalers: The New Generation of Data Centers
Currently, Spain’s installed capacity reaches 293 MW, and the pipeline of ongoing and planned projects could multiply this figure fivefold in the next decade thanks to the arrival of large tech operators, or hyperscalers, which require large-scale, fast projects to meet demand.
The sector’s expansion is also reinforced by the installation of gigafactories, large industrial plants producing batteries and tech components that demand high energy and connectivity. These infrastructures are crucial for electric vehicle development and energy storage, attracting major investments to the region.
For example, notable projects in Spain include Volkswagen’s gigafactory in Sagunto (Valencia), with an investment of over €3 billion and an annual capacity of 40 GWh, and Envision AESC in Navalmoral de la Mata (Cáceres), aimed at supplying batteries to major European manufacturers. Their deployment, combined with the growth of data centers and renewable energy, leads CBRE to anticipate a new cycle of sustained technological and industrial growth in Southern Europe.
Key Investors and Notable Project
Among the many ongoing projects, hyperscalers stand out. For instance, the construction company ACS and BlackRock, through its Global Infrastructure Partners (GIP) fund, are finalizing a €23 billion alliance for the joint development of data centers under ACS Digital & Energy. The deal includes an initial contribution of €5 billion in equity and nearly €18 billion in financing. The investment will focus on construction, management, and operation of infrastructures in Spain, Portugal, the UK, and the US, where ACS already manages energy and tech projects.
Another major project in Spain involves Merlin Properties and Iberdrola, reaffirming the trend highlighted in Colliers’ September 2025 Iberia Data Center Report: large developers are starting to generate their own energy, which helps reduce costs, become more sustainable, and connect projects faster.
The SOCIMI, together with Iberdrola, will build Spain’s largest data center at the Bilbao Arasur campus (Álava), with an investment of around €375 million. The complex will have a capacity of 100 MW and will operate with 100% renewable energy supplied by the energy company.
Challenges in the Iberian Market
In Spain, data center regulations vary by region and type of infrastructure, including requirements on energy efficiency, physical and cybersecurity, and environmental management. However, delays in permits and slow bureaucracy hinder the development of new projects. In the Community of Madrid, for example, specific guidelines must be followed for data center implementation, making it essential to have an expert team to meet deadlines and capitalize on this growing investment opportunity.
