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Overview of Data Center Growth in Spain and Italy

Recent insights from Arizton's latest research showcase remarkable growth predictions for the data center markets in Spain and Italy. By 2031, Spain is expected to see its data center market soar to approximately USD 8.83 billion, reflecting a CAGR of 17.55%. Meanwhile, Italy is projected to reach USD 7.09 billion, growing at a CAGR of 10.42%. This promising trajectory underscores both nations' evolving positions as pivotal hubs in Southern Europe's digital economy.

Spain's Data Center Landscape

Spain's data center sector is highlighted by significant growth driven by various key factors such as increasing demand for cloud services, AI integration, and the expansion of IoT and big data technologies. The country's robust growth potential is further supported by expanding 5G connectivity, facilitating superior digital service delivery across urban centers.

Current Infrastructure and Future Projections

As of December 2025, Spain is home to 67 operational data centers and 49 planned facilities. Madrid leads this expansion, taking the lion's share with around 34 existing data centers and an additional 20 in the pipeline.

The market's projected size in terms of area is estimated at 1,610 thousand square feet, with a targeted power capacity of 421 MW by 2031. Notably, the colocation segment alone is anticipated to generate revenues reaching USD 2.96 billion.

Investment Highlights

Investments in Spain's data centers are increasingly focused on sustainability. Many operators emphasize the integration of renewable energy sources and energy-efficient infrastructure.
For instance, Vantage Data Centers is set to invest USD 3.71 billion into a new campus in Zaragoza, which marks a proactive response to the rapid rise in hyperscale demand within the region. Additionally, the development of AI-focused data centers is gaining momentum, with EdgeMode planning five campuses with a capacity of 1.5 GW intended to support growing cloud and AI workloads.

Enhancing Connectivity

Major investments in subsea and inland cable infrastructure continue to position Spain as a central hub for international digital connectivity. The planned Google Sol subsea cable, connecting the U.S., Bermuda, the Azores, and Spain, is a testament to the region's enhancing global data nexus.

Italy's Data Center Expansion

Italy's data center industry is similarly on an upward trend, primarily backed by heightened demand for digital solutions across cloud computing, AI, and big data analytics. Establishments in Milan are a key focus of this growth, catering to the increasing requirements for advanced data facilities and collaborative cloud environments.

Infrastructure Overview

The Italian market is expected to expand significantly, with 73 active data centers and 34 projected developments, appealing to a broad network of digital service providers. By 2031, the market size is set to reach 735 thousand square feet of data center space, alongside an anticipated power capacity of 210 MW. Revenue from colocation services is projected to exceed USD 2.68 billion.

Fostering Investments

Italy's strategic geographic position enhances its attractiveness for data center investment. As the first EU nation to implement a national AI law, Italy remains at the forefront, promoting responsible AI practices that will strengthen the data center framework across sectors including healthcare and finance.

Conclusion

Both Spain and Italy are on the verge of transforming their respective data infrastructure landscapes, driven by significant investments in connectivity, sustainable practices, and advanced technology integration. As these markets evolve, they are poised to become pivotal players in the European tech ecosystem, attracting global operators and shaping the future of digital services in Southern Europe.