Spain Data Center Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030

Spain Data Center Market Analysis

The Spain Data Center Market size is estimated at 0.98 thousand MW in 2025, and is expected to reach 1.36 thousand MW by 2030, growing at a CAGR of 6.68%. Further, the market is expected to generate colocation revenue of USD 963.8 Million in 2025 and is projected to reach USD 1,716.5 Million by 2030, growing at a CAGR of 12.24% during the forecast period (2025-2030).

Spain's strategic geographical position has established it as a crucial digital infrastructure hub, connecting the Americas to the west, Africa to the south, and the Middle East and Asia to the east. The country's data center market is experiencing significant transformation driven by increasing digitalization across industries. Madrid, as the third-largest metropolitan region in Europe after London and Paris, has emerged as a prime location for data center investments. The city hosts over 20,554 companies as of 2022, with 99% being SMEs, creating substantial demand for data center infrastructure and storage facilities. This concentration of businesses, combined with Spain's role as a connectivity crossroads, has attracted major cloud service providers and data center operators to the region.

The market is witnessing a notable shift toward higher-tier data center facilities, reflecting the increasing sophistication of enterprise requirements. Tier 3 and Tier 4 facilities are expected to dominate the market by 2029, collectively holding a 99.3% market share. This transition is driven by enterprises' growing need for enhanced reliability, reduced downtime, and superior infrastructure capabilities. Large businesses are particularly drawn to Tier 4 data centers due to their fault-tolerant capabilities and 99.99% uptime guarantee, while Tier 3 facilities remain popular among a broader range of users due to their balanced offering of reliability and cost-effectiveness.

The financial services sector is emerging as a key driver of data center demand, with neo-banking expected to reach USD 138.5 billion by 2027. Digital payment adoption continues to accelerate, with user numbers projected to reach 40.6 million by 2027. This digital transformation in the financial sector is complemented by the broader adoption of cloud data center services, with major providers like AWS developing new cloud regions in Madrid with three availability zones. The increasing integration of financial technology and digital services is creating sustained demand for robust data center infrastructure.

The market is experiencing a significant shift toward hyperscale data center facilities, particularly in Madrid and other major cities. These facilities are designed to meet the growing demands of cloud service providers, content delivery networks, and large enterprises requiring substantial computing resources. The industry's focus on environmental sustainability is evident in the adoption of energy-efficient technologies and renewable energy sources, with many facilities implementing advanced cooling systems and power management solutions. This trend aligns with Spain's broader digital transformation initiatives, including the Digital Spain 2026 roadmap, which aims to enhance the country's digital infrastructure and connectivity capabilities.

Spain Data Center Market Trends

Rising smartphone ownership and increase in number of app downloads boost the market growth

• The total number of smartphone users in the country was 42.51 million in 2022, which is expected to reach 46.6 million by 2029, witnessing a CAGR of 1.3% during the forecast period. In Spain, digital usage is growing quickly. The swift uptake of the internet and mobile technology in a range of enterprises has had an impact on consumer behavior. Consumer spending in Spain was USD 802.79 billion in 2021, a 12.04% increase from 2020. Thus, more people can now buy smartphones, increasing the usage of smartphones.
• Over the next several years, it is anticipated that when 5G technology is deployed throughout Spain, a greater proportion of people will have smartphones that can use the new technology. Spain has four operators: Movistar, Orange, Vodafone, and Yoigo, which have 5G customers. With a 5G smartphone and a 5G tariff plan, consumers on these operators' networks spent 9.6-10.6% of their time connected to a 5G network.
• The pandemic accelerated Spain's move toward digitalization. WhatsApp was the social media platform 95.05% of Spaniards utilized, followed by Instagram, Facebook, and YouTube. They spent three to four hours a day on these applications. In order to maintain contactless services, public and private organizations switched to digital platforms, which increased the need for data center services in Spain.
• This tendency has been especially noticeable in the financial sector, as Spaniards are becoming more dependent on online banking. For instance, compared to 17.3% before the pandemic, 36.4% of banking service users now utilize their online banking applications every day or virtually daily. As a result, the number of data centers in Spain has increased due to the large amount of data generated by smartphones.

Increase usage of FTTx broadband and fiber optic network lead to market demand

• The maximum speed of a copper-based internet connection is 62.8 Mbps, whereas the maximum speed of a fiber-optic internet connection is 134.6 Mbps. Compared to the expected speed of 1,342 Mbps in 2029, the FTTx broadband data speed in 2022 stood at 159.2 Mbps. The goal of data centers' efforts to become faster is to provide higher network connections and simple and flexible scalability as bandwidth demands change on a moment-by-moment basis. More people use the internet, which necessitates data storage that is increasing in size and boosting the volume of processing facilities.
• DSL remained the most prevalent technology in Spain till 2020, while its connectivity has decreased since then. The decline of DSL networks demonstrated that Spanish operators prioritize brand-new FTTP deployments over upgrading copper networks. The trend of declining DSL coverage is the result of both targeted decommissioning and a rise in the number of households. By 2020, 84.9% of homes had access to FTTP broadband services, owing to Spanish operators' expansion of their FTTP network infrastructure, which saw a 4.6% increase in FTTP coverage.
• Three major operators control the majority of Spain's extensive fiber optic network. Telecom companies better fulfill users' rising bandwidth demands with a quicker network. In terms of gigabit-speed connectivity, Spain is among the top countries, owing to the ongoing improvements in FTTP availability. The Spanish national broadband plan focused primarily on rural areas, given an already high FTTP coverage in urban areas, which is the driving rural FTTP coverage and expansion.

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

• Increasing users of social networking sites and availability of high-speed internet incrrases the market demand
• High levels of broadband and fiber cable connections increases the data speed leading to market demand
• High penetration rate of FTTH network and government initiatives towards Programa de Extensión de la Banda Ancha (PEBA, Broadband Extension Program) leads to the market growth

Segment Analysis: Data Center Size

Mega Segment in Spain Data Center Market

The mega data center size segment dominates the Spain data center market share, commanding approximately 47% market share in 2024, with a total IT load capacity of 443.79 MW. This segment's prominence is driven by the increasing demand for large network, storage, and server capacity to support retail financial centers, ATMs, and active online accounts. Major construction locations include Madrid and Barcelona, with companies like Interxion (Digital Realty) operating mega data centers with significant capacities. The segment is experiencing robust growth at a CAGR of around 17% during 2024-2029, supported by numerous companies such as Global Switch and Iron Mountain that are expected to drive the growth of mega-sized data centers. The combined capacity of facilities currently under construction is projected to surpass 20 MW by 2029, further solidifying the segment's market leadership.

Remaining Segments in Data Center Size Market

The large data center size segment represents the second-largest category in the market, followed by massive, medium, and small data centers. Large data centers cater to diverse industry verticals with multiple facilities spread across key locations, while massive data centers focus on providing concentrated computing power in strategic locations. Medium-sized facilities serve as regional data processing centers, offering balanced capabilities for mid-sized enterprises. Small data centers, though limited in capacity, play a crucial role in serving local businesses and specific industry requirements. These segments collectively provide a comprehensive ecosystem that supports various business needs, from local operations to regional data processing requirements.

Segment Analysis: Tier Type

Tier 3 Segment in Spain Data Center Market

Tier 3 data centers dominate the Spanish data center market, commanding approximately 67% market share in 2024. The segment's prominence is driven by its optimal balance of reliability and cost-effectiveness, making it particularly attractive for enterprises requiring high availability without the premium costs of Tier 4 facilities. These data centers offer concurrent maintainability features and N+1 redundancy across critical components, ensuring 99.982% uptime. Madrid hosts the country's largest concentration of Tier 3 facilities, with a market share exceeding 70% of all Tier 3 data centers, followed by other regions in Spain. Major operators like Interxion (Digital Realty) and Global Switch lead this segment with significant facilities in Madrid, offering capacities of 79.52 MW and 39 MW respectively.

Tier 4 Segment in Spain Data Center Market

The Tier 4 segment is experiencing the most rapid expansion in the Spanish data center market, with a projected growth rate of approximately 14% from 2024 to 2029. This robust growth is primarily driven by increasing demand from hyperscale colocation data center services and major cloud providers requiring the highest levels of reliability and uptime. Tier 4 facilities are distinguished by their fault-tolerant infrastructure, complete redundancy in power and cooling systems, and superior uptime guarantee of 99.995%. The segment is witnessing significant construction activity, with numerous companies such as Equinix, Iron Mountain, and Nixval actively developing new Tier 4 certified facilities. These upcoming constructions are predominantly concentrated in the Madrid region, reflecting the growing preference for maximum reliability and redundancy in data center operations.

Remaining Segments in Tier Type

The Tier 1 and Tier 2 segments represent the basic level of data center infrastructure in Spain, primarily serving small and medium enterprises with minimal IT load requirements. These facilities offer single power and cooling paths with limited redundancy, making them suitable for organizations with basic computing needs and lower uptime requirements. While these tiers provide cost-effective solutions for smaller businesses, their market influence continues to diminish as enterprises increasingly prioritize higher reliability and uptime guarantees. Major providers in this segment, including Aire Networks and Adam, focus on serving SMEs requiring minimal IT loads at affordable prices, though the segment shows minimal growth potential due to the market's shift toward higher tier facilities.

Segment Analysis: Absorption

Utilized Segment in Spain Data Center Absorption Market

The utilized segment dominates the Spain data center absorption market, accounting for approximately 74% of the total IT load capacity in 2024. This significant market share is driven by the increasing adoption of data center services across various sectors, including cloud, e-commerce, BFSI, telecom, and other industries. The segment's dominance is particularly evident in Madrid, which maintains about a 76% occupancy rate, showcasing the strong demand for data center facilities in the region. The widespread deployment of hyperscale facilities, coupled with the growing presence of retail and wholesale colocation data center services, continues to strengthen the utilized segment's position in the market. The segment's robust performance is further supported by Spain's position as the fourth largest e-commerce market in the European Union, with over 26 million customers driving the demand for data center services.

Utilized Segment Growth in Spain Data Center Absorption Market

The utilized segment is experiencing remarkable growth in the Spain data center absorption market, driven by several key factors. The segment's expansion is fueled by the rapid adoption of cloud-based services, increasing digitalization across industries, and the growing demand for data processing capabilities. The growth is particularly notable in the hyperscale and wholesale colocation sectors, where major cloud providers and enterprises are expanding their presence. The segment's growth is further accelerated by Spain's strategic position as an interconnection hub, attracting significant investments from international data center operators. The increasing deployment of 5G technology throughout Spain, coupled with the rising smartphone adoption rate, is creating additional demand for data center services, contributing to the segment's expansion.

Remaining Segments in Data Center Absorption Market

The non-utilized segment represents the remaining portion of the Spain data center absorption market. This segment primarily consists of vacant rack space and unused IT load capacity within existing data center facilities. While the non-utilized segment plays a crucial role in providing expansion opportunities and maintaining operational flexibility, its share is gradually declining as data center operators optimize their facility utilization rates. The segment serves as a strategic reserve for future growth, allowing data center providers to quickly accommodate sudden increases in demand or new client requirements. The presence of non-utilized capacity also enables data center operators to maintain competitive pricing and service quality while ensuring sufficient room for technological upgrades and infrastructure improvements.