- Microsoft invests €6.69 billion($7.16 billion) in Aragon data centers, following Amazon, reinforcing Zaragoza as a European cloud computing hub.
- Microsoft and Amazon’s investments highlight Aragon’s strategic importance and sustainability potential, boosting local economy and positioning Spain as a European cloud computing hub.
OUR TAKE
Microsoft’s investment in Aragon is a forward-looking initiative that promises significant economic, technological, and environmental benefits, while intensifying the competitive dynamics in the cloud computing industry.
–Alaiya Ding, BTW reporter
Microsoft is investing €6.69billion ($7.16 billion) in new data centers in Aragon, Spain, over ten years, following Amazon’s €15.7 billion($16.8billion) commitment. This enhances Zaragoza’s position as a major European cloud computing hub.
What happened?
The introduction of Microsoft’s investment
Microsoft announced a significant investment of €6.69 billion ($7.16 billion) to develop new data centres in Spain’s northeastern region of Aragon. This move follows a similar initiative by Amazon’s AWS, which recently committed €15.7 billion ($16.8 billion) over the next decade to build data centres in the same region. Microsoft has applied for a construction permit to build these facilities outside Zaragoza, a city that is becoming a major cloud computing hub in Europe. The investment will be spread over ten years, reflecting a long-term commitment to the region.
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Why it’s important?
The importance of the investment
This investment is crucial as it signifies the growing importance of Aragon as a strategic location for cloud computing in Europe. The region’s substantial wind power capacity aligns with tech giants’ commitments to sustainability, as seen in Amazon’s pledge to power its data centres with renewable energy. The competition between Microsoft and Amazon in Aragon underscores the region’s attractiveness due to its strategic location. Zaragoza’s position as a logistics and transportation hub, situated between Madrid and Barcelona and along a vital trade corridor to France and Europe, enhances its appeal. This development not only boosts the local economy but also places Spain at the forefront of the digital transformation in Europe, attracting further investments and fostering technological advancements. The rivalry between these tech giants in Spain highlights the broader trend of rapid expansion in the cloud computing industry, driven by increasing demand for digital infrastructure.
