Large digital havens become the new hotspot for real estate investment

“Moving from an analog asset to a digital asset.” This is how Ismael Clemente, renowned CEO of Merlin Properties, defined investing in data centers. data centers in real estate jargon. These great digital bunkers unleashed a whole anger between big funds and international tech companiesthose who want to position themselves in a very new segment in Spain.

this quality or strength data center measured in megawatts. These features are responsible for storing hardware that functions as cloud storage for companies. Construction is only a third of the cost to install and operate it, due to the large investment in the technology they require. They also need to have good power connections, cooling, and physical and virtual security measures as they can be targeted by attacks.

Spain has a privileged position due to its geography and is becoming the gateway to Europe. The ends of many submarine cables that will connect Europe to America, Asia and Africa will be in our country. Experts in the field predict that “Spain will be the lowest latency point in the entire Old Continent.” Madrid and Barcelona will have a growth of over 500%, which means data centers It is the fourth most requested type of real estate asset by investors. Forecasts show that Spain will quadruple its storage capacity in the next three years. According to Colliers, 5,000 million euros will be invested in data centers in Spain by 2025..

For real estate investors, they represent a very attractive opportunity as they are very innovative assets and have high barriers to entry. It is necessary to form good alliances in order to finish them properly. In addition, the estimated profitability after development is higher than other segments such as residential, office or traditional logistics warehouses, even exceeding 7%.

Madrid and Barcelona

Madrid is already adding 500 MW in development. Investors will be located in towns in the region such as Alcobendas, Tres Cantos, Las Rozas, Fuenlabrada, Getafe, San Fernando and Alcalá de Henares. Among those whose projects are currently in progress, the fund established by Microsoft, Thor Equities or a son of the head of Banco Santander stands out.

Until now, Barcelona’s appetite was smaller than the capital; however The arrival of one of the submarine cables put him under the spotlight.. Merlin Properties, American Panattoni or Catalan Renta Corporación owns developments in Zona Franca, Cerdanyola and L’Hospitalet de Llobregat respectively. Outside of the two main Spanish cities Projects in Extremadura, Castilla La-Mancha, Aragón or Andalusia; Meta is managed by Ingenostrum and Aire Networks.

Merlin Features

Undoubtedly, Ibex-35 Socimi has been one of the real estate companies previously positioned in this segment. The origin of your investment, disuse given to some floors of logistics warehouse platforms. These parcels were of little value to Merlin and were used for gas stations or supermarkets.

At this point, the development Four new centers in Madrid, Barcelona, ​​Bilbao and Lisbon. The listed company already has three building permits in Spain and has started to develop in the Basque Country. It has a strategic alliance with North America Endeavor for its establishment, which will make them ultra energy efficient and with zero net water consumption.

Google. Facebook, Amazon and Microsoft

Facebook is one of the big tech companies that has shown its intention to build a large data center in Spain. As they stated at a meeting with the Head of Government, 1,000 million will be invested in its new facility in ToledoIt will be built on land owned by the public land organization SEPES. The extension of the asset, which will be located between 5 and 6 buildings, reaches 2 million square meters.

Google a data center as such, developing a new one centre cyber security in spain. The Malaga coastline will be 2,500 square meters in a former military building, at the service of the American technology company. According to El Periódico de Esapaña, the investment related to the rehabilitation of the property alone can be estimated at more than 3 million euros.

AWS division Amazon completes the opening of a new presence around Zaragoza. As reported by the company itself, together with the logistics platforms in the region, it will involve an investment of 2,500 million Euros over the next 10 years and create 1,300 new jobs. Microsoft is the fourth tech company with plans in Spain. Founded by Bill Gates, the company has ongoing projects in Algete, Meco and San Sebastián de los Reyes to provide cloud solutions to Spanish companies and public administrations.

Source: Informacion

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