Madrid is swiftly emerging as a powerhouse in Europe’s cloud computing and data infrastructure landscape. With a wave of billion-dollar investments from American tech giants, the Madrid region is transforming into a digital hub that rivals Europe’s biggest technology centers.
With an 89,3% increase in installed capacity in the last four years, Madrid currently hosts 41 operational data centers, ranking as Europe’s sixth data region. This standing is supported by its robust infrastructure, proximity to major submarine cables, advanced telecommunications network, and stable power grid—all of which facilitate cloud services for businesses and public entities. A secure legal framework and a favorable tax regime further enhance its appeal.
The city has become a major hub for cloud and data investments from American tech giants. Google and Oracle opened cloud regions in 2022, followed by IBM in 2023 with its European Multizone Cloud Region, serving over 600 clients on renewable energy. Microsoft then launched the Spain Central cloud region in 2024, part of its $2.1 billion commitment in Spain for 2024-2025.
More growth is underway. Prime, a U.S. data center firm, plans to begin constructing a 40 MW facility in early 2025, and Miami-based Digital Realty will double its Madrid data center this year, reaching 32 MW. Form8tion’s Madrid One campus—backed by Thor’s U.S. investment group—is set to launch in 2025 with five data center buildings and a substation supporting 200 MW of total power. Iron Mountain’s new 20 MW on-campus facility scheduled for Q1 2026, will expand its existing 3 MW capacity.
Other international players are seizing opportunities as well. DATA4 will add up to 80 MW across its MAD01 and MAD02 sites, backed by a €480 million investment. Meanwhile, Saudi Arabia–based EDGNEX Data Centers is constructing a 40 MW facility scheduled to begin operations in 2026.
Overall, Spain is poised to attract more than €6 billion in direct data center investments over the next five years. With nearly 20 projects in the pipeline, Madrid alone could reach 1,105 MW by 2030, according to the latest Spain DC report, solidifying its position as Southern Europe’s leading digital infrastructure hub. This momentum is reinforced by prominent industry gatherings like DCD Connect Madrid, the Madrid Tech Show, and South Summit, which spotlight the region’s rapid emergence as a top destination for innovation.