Damac Group expands into Spain with 400 million euros data center investment in Madrid

The data center market in Spain continues to heat up with the latest major development from Dubai-based Damac Group. The company has announced its entry into the Spanish market with the acquisition of land in Madrid, where it plans to build a state-of-the-art data center. This ambitious project represents a significant investment of 400 million euros, underscoring the growing demand for digital infrastructure in Spain and Europe.

Damac Group, renowned for its luxury real estate developments, is diversifying into the tech sector with this venture. The company’s move into Spain aligns with its broader strategy of expanding its footprint in global technology markets, capitalizing on the surging demand for data storage, cloud computing, and digital services. Spain, with its strategic location and rapidly growing digital economy, is an attractive destination for such investments.

“We plan on investing 400 million euros in our first 40MW investment in the Spanish Data Centre space. Spain’s advanced connectivity, strategic location, and commitment to renewable energy make it an ideal hub for expanding our high-performance infrastructure. As we continue our global expansion, we will deliver scalable, robust solutions that serve the needs of hyperscalers and enterprise clients within a rapid timeframe. Alongside looking at additional investments in Madrid, we will look for opportunities in strategic locations such as Barcelona, Zaragoza, and other locations in Spain,” said Hussain Sajwani, Founder of DAMAC Group.

The announcement comes at a time when Spain is emerging as a key hub for data centers in Europe, driven by increasing digitalization across industries, strong connectivity infrastructure, and supportive government policies. The country’s position as a bridge between Europe, Africa, and Latin America makes it a crucial player in the global digital landscape.

Damac Group’s planned data center in Madrid is expected to bolster the region’s digital infrastructure and support the growing needs of businesses in Spain and beyond. This investment marks a significant milestone for the company as it enters the competitive European data center market. With a substantial financial commitment and a strategic location, Damac is poised to make a lasting impact on Spain’s tech ecosystem.