This data centers known as ‘data centers’ in real estate jargon, a complicated situation in the coming months. Most of these assets promoted by major American tech companies those who are currently going through a process post crisis crisis interest rates. While giants like Amazon have lost nearly 50% of their value in the stock market so far this year, giants like Facebook have fallen by 65%. They also announced significant cuts to their staff and expansion plans.
However, José Guilleuma, Head of Data Centers at the Colliers consulting firm, believes this does not prevent the development of ‘data centers’ in Spain:Data consumption trends and the emergence of new businesses This makes it even more necessary to develop, if possible, the entire digital infrastructure where data centers are needed, such as the metaverse or e-sports. In the event of a sudden stop, more will come difficulty accessing electrical power”.
During 2022, Wall Street tech companies announced Few investments in Spain. For example, Google, Target (Facebook)IBM or Amazon have plans. Apart from these, specialized companies like CyrusOne or Iron Mountain and funds like Thor set up their own accounts. “The market trend shows that this is just the beginning and 2023 will be the last year of takeoff José Guilleuma certainly confirms this, as he told El Periódico de España of the group Prensa Ibérica.
Colliers did not see the pace of investment slowing despite the rise in interest rates. “We did not feel a decrease in appetite in such beings. On the contrary, looks like a good shelter asset, data consumption will not be affected,” they note.
The latest report of the consultancy foresees an investment of 5,000 million euros by 2025. the annual profitability that can be obtained from these exceeds 7% and can approach 20%., much higher than other assets such as a rental home or office. According to a study by the Spanish data center association Spain DC, “In the scenario where Madrid will increase its capacity to 621 MW by 2026, the accumulated direct investment up to this year may exceed 6 billion euros. Add to that.” an indirect investment of at least 10,000 million euros”.
Regarding the arrival of new players in Spain, Colliers’ manager predicts: “Major operators are expected to come to our country in the coming months. The strategic location of the peninsula is key for customers of operators and the advent of hyper scalars has had a knock-on effect that will become tangible in the coming months. In addition, other infrastructure and ‘Real Estate’ funds are also positioned in this sector.
The shore will take the baton
They point out from Colliers that saturation in the northeast of Madrid, which they see as “the main ‘center’ within the peninsula,” could mean “one”. Opportunity for other destinations such as Barcelona, u200bu200bMalaga, Valencia or Bilbao”. According to Spain DC, the capital monopolized 91% of the country’s total capacity by December 2021, though it is far from matched by other European cities such as Frankfurt, Amsterdam, Paris or London.
“Madrid has been the traditional location For data centers for over 20 years. The capital enjoyed equidistant from any point on the peninsula’s coast and served as a de facto submarine cable mooring station. The origin and end of the fiber backbone network is in Madrid. From there, the next wave of investments will take place, where there are real landing stations: Barcelona, u200bu200bBilbao, Valencia, Malaga and Lisbon. The investment will end up following the main axes of this backbone network: Barcelona-Madrid-Lisbon, Santander-Bilbao-Zaragoza-Barcelona and Madrid-Bilbao”, adds Colliers Data Centers manager.
Madrid currently has 100 megawatts (MW: the unit of power of a data center) and 505 MW in development; In Barcelona, 20 MW is in operation and 110 MW is under construction. Outside the metropolitan area of two major Spanish cities, Facebook will make its own investment in Talavera de la Reina (Toledo) and Ingenostrum will launch a 120 MW one in Cáceres.