Microsoft to invest $7.16bn in new data centers in Spain

Microsoft plans to fund 6.69 billion euros ($7.16 billion) in creating new data centers in Spain’s northeastern province of Aragon, which is evolving into a central cloud computing hub within Europe.

Investment Announcement

Microsoft has announced plans to invest 6.69 billion euros ($7.16 billion) over the next decade to develop new data centers in Aragon, a region in northeastern Spain. This investment aims to establish Aragon as a significant cloud computing hub within Europe.

The regional government confirmed that the U.S. tech giant has applied for a construction permit to build the data centers near Zaragoza, following a report by the local newspaper El Heraldo.

Strategic Expansion

This investment comes on the heels of Microsoft’s recent announcement of a 2.1 billion euro investment in data centers in Madrid.

While Microsoft has declined to comment specifically on its plans for Aragon, this move signifies a strategic expansion of its data center network across Spain.

Competition and Renewable Energy

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Microsoft’s primary competitor, Amazon Web Services (AWS), has also set its sights on Aragon. Last month, Amazon announced a massive 15.7 billion euro investment over the next 10 years to build data centers in the region.

Amazon has committed to powering its data centers fully with renewable energy, leveraging Aragon’s substantial wind power capacity.

Regional Advantages

Zaragoza, Spain’s fifth-largest city, offers strategic advantages as a logistics and transportation hub. Located midway between Madrid and Barcelona, it sits in the heart of the main trade corridor connecting the Iberian Peninsula to France and the rest of Europe.

This central location makes Zaragoza an ideal site for data center development, benefiting from its connectivity and infrastructure.

Economic Impact

The planned investments by Microsoft and Amazon are poised to transform Aragon into a key player in the cloud computing industry.

These developments will likely stimulate the local economy, create jobs, and enhance the region’s technological infrastructure. The focus on renewable energy also aligns with broader sustainability goals, making Aragon a model for green energy use in tech investments.

In summary, Microsoft’s significant investment in Aragon underscores the region’s growing importance as a cloud computing hub and highlights the strategic value of its location and renewable energy resources.