This Wednesday, Google opened a new regional cloud hub for southern Europe in Madrid, a move aimed at helping national companies boost connectivity, storage, and data management across the region.
The California tech giant has earmarked about 600 million euros for the Madrid deployment, powered by three data centers located in the Community of Madrid. According to Isaac Hernández, head of Google Cloud in Spain, the arrangement ensures that the majority of services can be operated entirely within Madrid, keeping data and operations inside national borders. The primary users are large enterprises, including BBVA and Carrefour.
The Madrid cloud region adds to Google’s global portfolio, now part of a network that numbers 32 regions worldwide. This infrastructure not only accelerates internet performance for clients but also guarantees private data handling and storage within Spain and the broader national territory.
Google Cloud’s capabilities extend beyond basic storage and access. A stronger network connection allows client companies to automate processes and deploy advanced technologies such as artificial intelligence and machine learning. These capabilities demand substantial computing power, prompting many organizations to rely on cloud services from major players like Google, Amazon, and Microsoft. Together, these three companies currently lead much of the global cloud market, with significant activity across Europe and Iberia in particular.
The Madrid initiative received support from Telefónica and is built to deliver maximum security guarantees. Spain’s public sector has shown strong interest in running its cloud-based services in partnerships with Google. The National Cryptology Center, part of the national intelligence framework, has endorsed the security of Google’s infrastructure and encouraged ongoing collaboration between the public administration and the company.
Economic impact
Google’s expansion in Spain has been in planning stages since 2020, with stated goals of accelerating recovery and boosting regional economic growth. A commissioned report from Implement Economics suggests that the project could lift Spain’s gross domestic product by as much as 1.2 billion euros and support the creation of up to 10,000 new jobs annually. The cloud investment is seen as a lever for digital transformation across multiple sectors, empowering local businesses to compete more effectively on the global stage while attracting further technology venture activity to the country.