Demand for data centers in Spain will grow by 90% by 2028
Spain DC and Accenture warn of the loss of ground compared to other European countries. Low land costs, competitive renewable energy prices, and a robust fiber optic network are key to attracting investment.
The Spanish Data Center Association (Spain DC) predicts that demand for data centers in Spain will grow by 90% by 2028, driven by digitalization, the use of cloud services, and the adoption of emerging technologies, according to the Study on the Demand and Impact of Data Centers in Spain , prepared by this association in collaboration with Accenture.
Specifically, the report indicates that Spain will increase its data demand from 1,589 exabytes in 2024 to 3,028 exabytes in 2028, representing sustained annual growth of around 20% over the next four years. In this sense, the growth in demand will be marked by the rise of multicloud architectures , the “massive adoption” of artificial intelligence (AI) and data processing, the exponential growth of IoT (Internet of Things) devices, the arrival of 5G with ultra-fast speeds, and the need for edge computing, reports Europa Press .
The report’s authors detailed,
The leadership in demand for digital services hosted in data centers in Spain corresponds to the communications , media, and technology sector, driven by the rise of cloud computing , artificial intelligence, digital entertainment, and social media,
Demand for data center services reinforces the need for nearby infrastructure
Two other sectors follow closely behind : public administration, with the digitalization of services and urban data management, and financial services, where technologies such as blockchain and banking digitalization require “robust infrastructures.”
While these three sectors account for more than 50% of demand, retail, healthcare, education, manufacturing, and energy are also increasingly adopting advanced technologies to optimize processes.
The study’s authors add,
The demand for digital services hosted in data centers in these sectors reinforces the need for nearby and efficient digital infrastructures to reduce latency, optimize operations, and comply with digital sovereignty regulations,
Despite growth forecasts, the report by Spain DC and Accenture warns that Spain has lost ground compared to Europe as a whole. While in 2018 it accounted for 4.3% of the total data volume on the continent, the growth recorded between 2018 and 2023 “has not managed to maintain that level.”
With an estimated compound annual growth rate of 20.3% for this period, ” Spain has lagged behind the average growth of the rest of Europe ,” reflecting an “insufficient increase” to consolidate its presence in the Old Continent’s digital market.
The study emphasizes,
To close this gap with Europe, Spain would need to achieve an average annual growth in demanded data volume of 22.5% by 2028, which would imply an additional 2.2% increase over the current rate; this adjustment would stabilize its relative share in the total data volume in Europe and ensure a constant and competitive proportion,
Spain would have to make a “significant effort” in infrastructure investment
Along these lines, he believes that Spain would need to make a “significant effort” in terms of investment in digital infrastructure, adoption of advanced technologies, and expansion of its electricity distribution networks. This accelerated growth would help it regain its 2018 position and allow Spain to respond to the growing demands of the European and global markets by maintaining its competitiveness in a “rapidly expanding” digital environment.
Emphasizes Robert Assink, Vice President of Spain DC and General Manager of Digital Realty in Spain, said:
Investing in the development of data centers in Spain isn’t just a matter of infrastructure; it’s a commitment to the future.
“These facilities represent an opportunity to close the gap with Europe , ensure the competitiveness of our companies, and consolidate Spain as a relevant player in the global digital economy,”
For his part, Manuel López, director and head of Cloud and Infrastructure at Accenture in Spain, emphasized during the presentation of the study that Spain is in an “opportune position” to become a major player in the development of data centers.
He said,
Factors such as low land costs, competitive renewable energy prices , a robust fiber optic network, and its strategic geographic location are key to attracting investment in this sector,
However, for these factors to materialize, companies and institutions must quickly adopt these technologies. Furthermore, he added in his presentation,
A regulatory framework is required that facilitates the rapid launch of new projects and the development of the necessary digital talent,
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Demand for data centers in Spain will grow by 90% by 2028, source
