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Microsoft to invest £5.6B to develop new data centres in Spain

Written by Tue 18 Jun 2024

Microsoft plans to investment £5.6 billion ($7.1 billion) to develop new data centres in Aragon, Spain, which is becoming a major cloud computing hub in Europe.

Aragon’s regional government confirmed that the US tech giant applied for a construction permit to build data centres near Zaragoza, as reported by El Heraldo.

Reuters reported the regional government said the investment will be split over ten years.

Microsoft is following its main competitor, Amazon’s AWS, in targeting Aragon for cloud computing investments. Last month, Amazon announced a £13.2 billion ($16.8 billion) investment over the next 10 years to build data centres in Aragon.

Amazon announced plans to fully power its data centres with renewable energy. The Aragon region, known for its substantial wind power capacity, hosts Zaragoza, Spain’s fifth-largest city. 

Zaragoza has emerged as a logistics and transportation hub, positioned between Madrid and Barcelona and along the main trade corridor linking the Iberian Peninsula with France and the rest of Europe.

In 2021, Amazon announced a plan to invest £2.1 billion ($2.6 billion) to expand data centre offerings in Aragon, northern Spain.

The company will spread the investment over the next decade, although they plan to open new data centre facilities in mid-2022. The £2.1 billion ($2.6 billion) expenditure will cover capital expenses, operating expenses, equipment imports and employee salaries through 2031.

Amazon’s expansion strategy in Spain is focused on the northern Aragon region and includes a plan to hire 1,300 employees across the new facilities. Amazon Web Services (AWS) has had a presence in Spain since 2012 but intends to expand services there in response to growing demand in the area.

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Written by Tue 18 Jun 2024

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