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Institutional commitment has been key to building confidence in companies such as CyrusOne when it comes to investing and expanding in the region.

The Madrid Region offers a host of advantages, having rapidly emerged as one of Europe's most attractive digital infrastructure markets, combining a strong presence of hyperscalers with a reliable and increasingly renewable electricity supply.

Today we interview Amparo Garcia Puente, Senior Development Manager at CyrusOne

1.- CyrusOne is recognized as a global leader in data center and interconnection solutions. Could you share how the company has evolved and what factors drove its decision to expand into Spain?

CyrusOne has seen significant growth since launching in Europe in 2017, building upon its notable presence in the US. Initially focusing on FLAP-D markets – Frankfurt, London, Amsterdam, Paris and Dublin – CyrusOne expanded at an impressive pace, with a portfolio of 14 operational facilities and a development pipeline of 500 MW IT capacity across the continent.

As CyrusOne looked to grow beyond these more established data center hubs, Spain – Madrid specifically – was the obvious next step. Spain is the fifth largest economy with the third highest renewable energy generation capacity in Europe, which demonstrates an enormous opportunity for us. Furthermore, hyperscale demand was and continues to be strong in the Spanish market, therefore, the time was right to be present and on the ground in this key location, offering our customers capacity and choice across the continent.

2.- What role does Madrid play in CyrusOne’s European growth strategy? What were the main reasons behind selecting Madrid as the location for your expansion?

As previously mentioned, Spain was the obvious choice as we explored expansion opportunities within Europe, given its strong economic position within the region and customer demand. Madrid in particular accounts for 20% of Spain’s GDP, and we are seeing it emerging as an economic powerhouse.

Overall, our success within the region comes down to our strategic decisions to doubledown on the right locations and concentrate on the right resources and capabilities in these geographies. Simply put, Madrid ticked all these boxes.

3.- From your perspective, what advantages does Madrid offer compared to other European hubs in terms of connectivity, infrastructure, and access to key markets?

Madrid offers a myriad of advantages. Firstly, it has rapidly emerged as one of Europe’s most compelling growth markets for digital infrastructure, combining a strong hyperscaler presence with reliable and increasingly renewable power. The region currently supports around 141 MW of live IT load across 27 data centers, with a 1 GW pipeline either in development, planned, or in land – the largest concentration being in southern Madrid. What’s more, Spain’s grid is among the most stable in Southern Europe, supported by significant investment in transmission upgrades and one of the ontinent’s highest shares of renewable generation, with over 50% of total output in 2024.

In addition, with new submarine cables landing in the city, an advanced 5G rollout, and Europe’s highest fiber penetration at 87%, it’s on track to become Southern Europe’s premier data hub, which presents outstanding opportunities for businesses. The city also has exceptional interconnection solutions across the Americas, Africa and Europe, and serves as Europe’s main gateway to Latin America, leveraging shared language, cultural ties, direct transport links, and strong business networks.

4.- How has Madrid’s ecosystem—talent, business community, and institutional support—contributed to CyrusOne’s ability to establish and grow its operations here?

Madrid’s talent pool has historically been concentrated in the aeronautics, automotive, and construction sectors, but this has shifted significantly in recent years. Universities and technical institutions are now offering programs aligned with the needs of data centers, from engineering to IT infrastructure and sustainability, including specialized postgraduate courses in data center management at institutions like Comillas Pontifical University and dedicated data center training at Madrid Polytechnic (UPM). Alongside engineers and technicians transitioning from traditional industries, these initiatives are creating a more engaged and specialized talent pool, which will only continue to support the growth of data center operations in the city.

Institutional engagement has also played a crucial role in giving companies like CyrusOne the confidence to invest and expand in the region. Both the Madrid regional government and the central government have engaged with various representatives from local data center associations, making it easier to initiate new developments in the region. Additionally, the Aragon and Madrid regions have launched new planning protocols, such as the “PIGA” and “Acceleradora de Inversiones”, designed to support
companies and investors seeking to develop large-scale infrastructure projects, including data centers.

With stronger support for talent and the broader business community, coupled with strong demand from cloud providers, enterprises, and colocation firms, CyrusOne has been able to establish its presence in the region and continue to grow, delivering customers exactly what they need, where they need it.

5.- CyrusOne provides mission-critical data center solutions that support innovation across industries. How do you see these services impacting Madrid’s business ecosystem and Spain’s digital transformation?

Data centers serve as critical infrastructure underpinning Spain’s digital economy and business modernization, with Madrid clearly embracing digitalization as most of the main industries present in the region now operate in the cloud. Robust data center infrastructure helped the labor market and the Spanish economy remain resilient during the pandemic, and since then, regular remote work has become possible for employees in suitable roles, fostering better work-life balance and a more inclusive workforce.

Beyond supporting businesses, data centers help stimulate the technology sector, create jobs, and position Spain as a strategic digital hub. Local facilities also help meet regulatory requirements such as GDPR while maintaining highperformance
access for end users. More broadly, the ongoing and rapid rise of artificial intelligence (AI) development and adoption across multiple sectors, from medical research and engineering design to product development and creative industries, have further demonstrated the importance of data centers. These facilities are the backbone of AI innovation, providing the massive computing power and storage capacity required, and as a result, data centers are not only supporting economic growth in Madrid but are also fueling the city’s reputation as a leader in digital innovation.

6.- What opportunities for collaboration or innovation has Madrid opened for CyrusOne, both within Europe and in connection with the U.S. and other international markets?

Madrid has played a key role in helping CyrusOne strengthen relationships with our main clients and partners, specifically those looking to expand into the region and more broadly across Europe. This market has presented significant challenges and valuable learnings for all parties, helping us to better understand each other, and an experience that will benefit future projects together. Some of our partners in Spain are now also working with us on projects across other European regions, which is a testament to the strong collaboration we have built.

7.- Looking ahead, what are the next steps for CyrusOne in Madrid in terms of expansion, investment, or the development of new capabilities?

Since CyrusOne entered this market, it has clearly evolved. Securing accessible plots for development, at fair prices and in the availability zones we require, has become increasingly challenging, though we remain committed to exploring new avenues for growth in this market and across Europe more broadly.

That being said, the opportunity in this market is undeniable. According to Structure Research, the Madrid data center market is expected to expand from 126 MW this year to 763 MW in 2029, growth of over 600%, which will position Madrid as one of the fastestgrowing data center markets in the world. It’s amazing to think that this puts the city in a position to overtake key FLAP-D hubs like Paris and Amsterdam by the end of the decade, and we’re excited for what the future might hold for CyrusOne in this region.

8.- Finally, as a global company with a strong presence in the U.S., what advice would you give to American startups and scaleups evaluating Madrid as a gateway to Europe?

Madrid is a welcoming and attractive market that is less crowded and potentially more cost effective than other regions in Europe. This cost advantage, coupled with growing solar generation and improving grid certainty, means companies should absolutely see the city as a priority market and a springboard to Europe, enabling them to scale into other regions across the country and the continent. The city offers a talented, multilingual workforce and an expanding pool of tech professionals, with Madrid also ripe for foreign investment and well-established business networks.

Recent government initiatives have further strengthened Madrid’s offering, with the central government recently announcing a substantial investment of €13.9 billion to expand the national electrical grid, a move that will significantly support the growth of data centers across the country. In addition, the Spain Start-up Law has introduced a range of measures designed to nurture new businesses throughout their lifecycle, particularly those looking to relocate within Spanish territory during their formative stages, making Spain an increasingly attractive environment for these types of businesses.

 

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