Microsoft to invest 2.2 billion euros in Spain data centres

Microsoft is set to invest 2.2 billion euros ($2.4 billion) in a massive data center project in northeastern Spain, according to regional authorities. This ambitious venture is part of Aragon’s strategy to become a leading hub for cloud storage.

The announcement, which follows other plans unveiled by the US software giant, raises Microsoft’s planned investment in Aragon to nearly 6.7 billion euros, regional leader Jorge Azcon informed reporters. This investment marks a significant milestone for the region, positioning it as a key player in the tech industry.

Microsoft’s commitment comes on the heels of a similar move by Amazon, which announced in May that its cloud computing division would invest 15.7 billion euros to expand its data centers in Aragon. Amazon currently operates three data centers in the region.

“This is great news for the Aragonese economy,” Azcon said, emphasizing the economic benefits expected from this investment, which he believes will have “a knock-on effect” in attracting other companies. The influx of investment is anticipated to drive further economic growth and innovation within the region.

In October, Microsoft revealed its intention to build a data center campus in Aragon to provide “cloud services to European companies and public bodies” without specifying the amount of investment involved. Now, with clear figures, the project is poised to transform the region’s technological landscape.

Citing figures from the IDC consultancy, Microsoft stated that the 88-hectare (217-acre) campus project could “contribute to the creation of more than 2,100 technology jobs in Aragon between 2026 and 2030.” This job creation is a significant boost for the local economy and tech sector.

“Data centers 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 said. The presence of these data centers is expected to attract further technological advancements and services.

For months, big tech companies have been ramping up their investment in data centers, which house servers to store vast amounts of information used by businesses and individuals. This growth aligns with the increasing demand for generative artificial intelligence, which requires robust electrical capacity due to the high energy consumption of data farms.

Aragon’s favorable conditions, including its ample sunshine, strong wind exposure, and existing solar and wind farms, make it an ideal location for such investments. Additionally, the region is well-connected to Spain’s communication networks, enhancing its appeal as a data center hub.

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