As the demand for digital infrastructure continues to grow across Europe, the Madrid region is emerging as an increasingly attractive hub for data center expansion.
A rapidly expanding market in Southern Europe
The data center market in Germany—especially in the Frankfurt region—is at a critical juncture. Land constraints, rising energy costs, stricter environmental regulations, and network saturation are prompting many operators to explore alternative locations across Europe to meet growing demand.
The Madrid region is drawing growing interest in this context. With 41 operational data centers and a total installed capacity of 164 MW, the region is seeing rapid development, with nearly 800 MW in the pipeline. Major players such as Equinix, Interxion (Digital Realty), Global Switch, and Nabiax are already established in the city. They’ve been joined by cloud hyperscalers including Microsoft, AWS, and Google, all of whom are deploying dedicated cloud regions in the Madrid region.
A competitive, connected ecosystem
Madrid’s transcontinental connectivity, strengthened by new subsea cables linking Spain to the Americas and Africa, makes it a strategic location for operators looking to optimize their geographic footprint. The region’s dense fiber network (98.8% coverage), reliable power infrastructure, and availability of industrial and logistics real estate create favorable conditions for large-scale projects.
The region also benefits from a particularly responsive regional administration. Through its Invest in Madrid agency, the regional government actively supports strategic projects by streamlining administrative procedures, identifying suitable sites, and mobilizing local support mechanisms. The fiscal environment is also a draw: there is no regional tax, and corporate tax is reduced to 15% for the first two years for newly established businesses.
In a sector where speed of deployment and risk management are key, Madrid region offers German operators a stable, predictable, and high-performing environment, both close to traditional European hubs and connected to emerging international markets.
For German data center operators seeking to diversify beyond the traditional FLAP-D markets, Madrid now presents a compelling combination of technical, economic, and institutional advantages. Its rapid growth makes it a credible and strategic anchor point within a broader pan-European expansion strategy.