Microsoft has unveiled its first cloud region in Spain, strategically situated across multiple sites in the Community of Madrid. This initiative is set to bolster Spain’s AI economy and drive digital transformation by offering secure and scalable cloud services to businesses and public entities across Spain and Europe.

Dubbed ‘Spain Central,’ Microsoft’s new cloud region aims to strengthen the local IT industry and spur economic growth. Microsoft projects the creation of about 77,000 jobs and a potential $10.7 billion boost to Spain’s GDP by 2030.

This cloud infrastructure forms part of Microsoft’s broader investment strategy in Spain, amounting to $2.1 billion between 2024 and 2025. The expansion is driven by increased demand for Microsoft’s AI and cloud services among Spanish organizations. Spain Central will feature advanced technologies including productivity tools, data analytics, cybersecurity, computing, and storage services through platforms like Azure, Microsoft 365, Dynamics 365, and the Power Platform. It will also offer Generative AI services, positioning it as one of Europe’s most technologically advanced cloud regions.

Jean-Philippe Courtois, Executive Vice President at Microsoft, highlighted the critical role of the new data centers in supporting the company’s European AI strategy. He emphasized that Spanish businesses integrated into the global economy will benefit from enhanced economic growth and digital capabilities. Alberto Granados, Country Manager for Microsoft Spain, underscored the company’s commitment to supporting Spain’s digital transformation through substantial investments and innovative partnerships.

The initiative has received strong support from various Spanish officials and industry leaders. José Luis Escrivá, Minister for Digital Transformation, praised Microsoft’s investment, noting its potential to place Spain at the forefront of digital transformation in Europe. Miguel López-Valverde, Regional Minister of Digitalization for Madrid, echoed this sentiment, highlighting the region’s appeal to global tech investments.

Commitment to Sustainability: Several Spanish companies and public organizations, including Abanca, CELSA Group, and MAPFRE Spain, are already benefiting from the new cloud region’s services. They report advantages such as reduced latency, enhanced data security, and compliance with European and Spanish regulations. The infrastructure will support high-speed, low-latency data connections, enabling the deployment of new AI-driven applications and services.

Microsoft’s commitment to sustainability is evident in the design of the Madrid data centers, which aim for a power usage effectiveness (PUE) of 1.12 and LEED Gold certification for green building standards. The data centers will use renewable biofuel for backup generators and direct evaporative cooling to reduce water usage. Microsoft has partnered with Repsol to execute virtual power purchase agreements (VPPAs) linked to wind and solar farms, contributing to a total installed capacity of 320MW by 2025.

The company has also launched significant community development initiatives, including training programs for unemployed residents and local empowerment projects. Microsoft aims to support the development of digital talent in Spain, addressing the current gap between AI adoption and the availability of trained professionals.

Overall, Microsoft’s new cloud region in Spain represents a substantial investment in the country’s digital future, promising economic growth, technological advancement, and enhanced sustainability.