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    Home » Microsoft invests in $7B data centre in Spain
    MICROSOFT
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    Microsoft invests in $7B data centre in Spain

    By Alaiya DingJune 17, 2024No Comments2 Mins Read
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    • 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.

    Also read: Apple surpasses Microsoft to become world’s most valuable company

    Also read: Microsoft Flight Simulator 2024 takes off on November 19

    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.

    data centre Microsoft Spain Zaragoza
    Alaiya Ding

    Alaiya Ding is an intern news reporter at Blue Tech Wave specialising in Fintech and Blockchain. She graduated from China Jiliang University College of Modern Science and Technology. Send tips to a.ding@btw.media

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