Microsoft plans to invest 1.8 billion pounds ($2.3 billion) in a new data center project in northeast Spain as part of a wider strategy to establish Aragon as a hub for cloud storage and digital innovation.
Aragon regional government president Jorge Ascón said the investment brings Microsoft’s total planned investment in the region to about 5.6 billion pounds ($7.1 billion), underscoring the company’s commitment to supporting Spain’s digitalization initiatives.
Aragón is considered a good location for data center investments for many reasons: the region is characterized by a low population density and a developed infrastructure, which makes it convenient for operating data centers. The environment is also ideal, with sunny skies and strong winds, which promote the production of renewable energy, both from solar and wind farms.
According to a report by Red Electrica, as of 2022, 75% of Aragon’s energy will be powered by renewable energy.
“By technology, wind is the region’s main source of electricity generation at 50 percent, followed by combined cycle (14.1 percent), solar PV (14 percent), hydroelectric (10.8 percent) and cogeneration (8.5 percent),” the report said.
Investment brings economic opportunity
Microsoft’s investment in a data center in Aragon could have a significant economic impact, directly creating more than 2,100 tech jobs by 2030. Indirectly, the investment could have a multiplier effect, attracting additional investment from technology companies and stimulating further innovation in the region.
Azcón highlighted the positive impact that an investment of this magnitude would have on the economy, suggesting that more tech companies could set up shop in Aragon. Amazon, for example, recently announced it would invest £13.2 billion ($16.9 billion) in the expansion of its data centers, which it operates across three facilities in the region.
“The data centre will undoubtedly play a vital role as the first link in the chain that will generate investment, innovation and wider digital services for our community,” Azcón said.
Microsoft’s commitment to Spain doesn’t end with its datacenter in Aragon: the company also opened its first cloud datacenter region in Madrid, called Spain Central, which will offer a range of services including productivity services, data analytics, cybersecurity and generative AI.
The new data center region is expected to provide a significant boost to the Spanish economy, potentially adding £8.3 billion ($10.7 billion) to the country’s GDP and creating around 77,000 jobs between 2024 and 2030.
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