Explosive growth in Madrid and Barcelona data centre markets

Author: Simon Rowley

Structure Research, an independent research firm focused on cloud and data centre infrastructure, has released its latest Madrid + Barcelona Data Centre Market Report, which reveals unprecedented growth in these emerging European markets. The report projects Madrid’s built-out data centre capacity to reach 1GW by 2030 – a sevenfold increase from 2024 – while Barcelona is expected to exceed 225MW in the same timeframe.

The colocation market in Madrid is forecasted to hit €413 million (£341m) by the end of 2025, growing at a five-year compound annual growth rate (CAGR) of 36%, while Barcelona’s colocation sector will reach €124.8 million (£103m), with a CAGR of 33.3%. This growth is largely driven by hyperscale cloud demand, increased AI workloads, and enhanced connectivity from new subsea cable investments across Iberia.

“Madrid and Barcelona have rapidly become two of Europe’s most dynamic data centre markets,” says Ainsley Woods, Research Director at Structure Research. “Hyperscale cloud adoption, powered by major cloud providers, is accelerating expansion, while new subsea cable landings are transforming Iberia into a major global connectivity hub.”

Key findings from the report

Madrid: a hyperscale powerhouse

• Madrid is set to become a 1GW market by 2030, fuelled by hyperscale cloud expansion
• The colocation market will grow to €413 million in 2025, with a CAGR of 36%
• Major cloud providers – including AWS, Microsoft, Google, and Oracle – have established cloud regions in Madrid, significantly increasing demand for both colocation and self-built facilities
• Power constraints have delayed projects, leading some demand to shift to Milan, Zaragoza, and other Southern European markets
• AI infrastructure providers, including CoreWeave, are investing in Madrid and Barcelona, leveraging Spain’s lower power costs and high renewable energy penetration

Barcelona: an emerging connectivity hub

• Barcelona’s data centre market is projected to grow fivefold, reaching 225MW by 2030
• The city is positioning itself as an alternative connectivity hub to Marseille, benefiting from new subsea cable landings
• Google Cloud and other providers are expanding their presence in Barcelona, recognising its strategic connectivity advantages

Subsea cable expansion: Iberia’s rising global influence

• Iberia is evolving into a major global interconnection hub, connecting Europe, Africa, and the Americas
• New high-capacity subsea cables – including 2Africa, Medusa, and EllaLink – are significantly enhancing connectivity, reducing latency, and diversifying routes
• Barcelona is becoming a critical subsea landing point, complementing the established cable hubs in Lisbon and Marseille

Challenges and market constraints

Despite its rapid growth, the Madrid and Barcelona markets face significant challenges. Power allocation bottlenecks in Madrid have delayed several projects, with some developments stalled due to supply constraints. Spain’s permitting process remains complex, creating additional barriers to expansion. With demand outpacing available supply, the market remains a seller’s market in the short term.

The Madrid + Barcelona Data Centre Market Report is a valuable resource for enterprises, hyperscalers, investors, and service providers looking to capitalise on Iberia’s growing digital infrastructure ecosystem.

To access the executive summary click here, or to purchase the full report, click here.

For more from Structure Research, click here.