Data centers, a term well understood in real estate circles, face a nuanced outlook in the coming months. Major American tech firms continue to push these assets, even as they navigate a post-crisis landscape of higher interest rates. Giants like Amazon have seen substantial stock depreciation this year, while Facebook’s parent company has suffered a similar decline. In tandem, both sectors have announced significant staff reductions and recalibrated expansion plans.
Yet, José Guilleuma, Head of Data Centers at Colliers, argues that this environment does not halt development in Spain. He points to rising data consumption, the emergence of new businesses, and the ongoing need to build digital infrastructure to support trends like the metaverse and e-sports. He notes that any sudden disruption would complicate access to electricity and power supply.
In 2022, several Wall Street tech players signaled cautious investments in Spain, though there were notable plans. Google, Target (Facebook), IBM, and Amazon displayed activity, alongside specialized firms such as CyrusOne and Iron Mountain, and investment funds like Thor. The market trend, according to Guilleuma, suggests this is only the beginning, with 2023 expected to mark a pivotal stage in growth, a view he shared with El Periódico de España of the Prensa Ibérica group.
Colliers observed that investment appetite did not retreat despite higher rates. They indicate a stable demand for data-center assets, underscoring that data consumption should remain resilient. The latest Colliers report projects investments reaching 5 billion euros by 2025, with annual returns often surpassing 7% and potentially approaching 20% in certain cases—more attractive than typical residential or office real estate. A study by the Spanish data center association Spain DC estimates Madrid could raise capacity to 621 MW by 2026, with direct investments exceeding 6 billion euros to date and indirect investments of at least 10 billion euros projected.
Regarding new entrants, Colliers’ leadership anticipates major operators moving into Spain in the near term. The peninsula’s strategic position is seen as ideal for operator clients, and the rise of hyperscalers is expected to produce tangible effects in the months ahead. Additional infrastructure and real estate funds are also aligning with this sector.
The shore will take the baton
Colliers notes that saturation in northeast Madrid, long regarded as the peninsula’s primary center, could create opportunities in other cities such as Barcelona, Malaga, Valencia, and Bilbao. Spain DC reports that Madrid accounted for the vast majority of the country’s capacity by December 2021, yet other European hubs like Frankfurt, Amsterdam, Paris, and London are closing the gap.
Madrid has long served as a central data-center hub, governing a roughly two-decade lead in this sector. Its geographic position made it a natural anchor for submarine cable landings, with the fiber backbone threading outward from the capital. As the next wave of investments unfolds, landing stations are expected to emerge in Barcelona, Bilbao, Valencia, Malaga, and Lisbon. Investments are likely to follow the backbone routes linking Barcelona, Madrid, and Lisbon, and extending to Santander, Bilbao, Zaragoza, and Madrid-Bilbao corridors, according to Colliers’ Data Centers team.
Current capacity in Madrid stands at 100 MW, with about 505 MW in development. Barcelona reports 20 MW in operation and 110 MW under construction. Outside the two major cities, Facebook is slated to invest in Talavera de la Reina in Toledo, while Ingenostrum plans a 120 MW facility in Cáceres. These developments reflect a broader push to diversify site selection across the nation while keeping Madrid as a cornerstone of the regional data-center network, with an eye toward future horizontal expansion across key coastal and interior nodes.