Microsoft to invest 2.2 billion euros in Spain data centres
Technology companies are increasing their investments amid growing demand for generative AI
MICROSOFT will invest 2.2 billion euros (S$3.2 billion) in a huge data centre project in the north-east of Spain, the regional authorities announced on Wednesday (Jul 3) as the area seeks to establish itself as a cloud storage hotspot.
The announcement – which follows other plans unveiled by the US software giant – Microsoft’s planned investment in Aragon to about 6.7 billion euros, regional leader Jorge Azcon said.
It also follows a similar announcement by Amazon in May which said its cloud computing division would invest 15.7 billion euros to expand its data centres in the same region. The company currently has three operational data centres there.
“This is great news for the Aragonese economy,” said Azcon, highlighting the economic benefits expected from this investment, which he believes will have “a knock-on effect” in attracting other companies.
Microsoft announced in October its intention to build a data centre campus in Aragon to provide “cloud services to European companies and public bodies” without saying how much investment that would entail.
Citing figures provided by global business consultancy IDC, Microsoft said the project with its 88-hectare campus could “contribute to the creation of more than 2,100 technology jobs in Aragon between 2026 and 2030”.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
“Data centres will undoubtedly play a fundamental role as the first link in the chain... that will generate investment, innovation and a wider range of digital services in our community,” Azcon noted.
For months now, big tech has been increasing its investment in data centres, where servers are housed to store the huge amounts of information used by both companies and individuals.
This growth is in line with the needs driven by the demand to develop generative artificial intelligence, which requires locations with a robust electrical capacity because these data farms consume a vast amount of energy.
Aragon is an ideal location because it is a sparsely-populated region that is home to both solar and wind farms, and is well-connected to Spain’s communication networks. AFP
Share with us your feedback on BT's products and services
