31 October 2024

Study: Iberian Peninsula emerges as key hub for transatlantic data flows

The Iberian Peninsula study cover

A new study from DE-CIX highlights the Iberian Peninsula's emergence as a critical hub for transatlantic data flows and digital infrastructure. The study, titled “The Iberian Peninsula: A next-generation regional mega hub”, provides an in-depth look at the region's rapidly evolving role in the digital economy.

Expansion of Internet infrastructure

One of the study's key findings is the impressive expansion of Internet infrastructure in the region over the past decade. Since 2014, the number of Internet Exchanges (IXs) has increased from five to 13, while the number of connected networks has grown by a staggering 1200%. As of 2024, there are more than 700 aggregated networks connected to IXs across the region, with DE-CIX Madrid emerging as the largest, hosting around 230 networks.

The region’s digital ecosystem has also been bolstered by the expansion of international submarine cable systems. Since 2016, Spain has seen an 83% increase in such systems, while Portugal has witnessed a 14% rise. As of mid-2024, there are 35 international sea cables landing in the Iberian Peninsula, with five more under construction, further enhancing the region’s capacity to handle global data flows.

Data center investments are growing strongly

Complementing this network growth, the Iberian Peninsula now boasts over 100 data centers with a total installed power capacity of around 1000 megawatts (MW). Madrid stands out as the sixth-largest data center market in Europe, with further investments set to increase the city's capacity by 356%. Major cloud providers, such as Microsoft, Google, and AWS, have committed billions in new projects.

The study highlights Iberia's role as an alternative gateway for transatlantic data traffic, particularly amid the need to ease congestion on traditional routes through major European hubs like London and Frankfurt. Positioned in a key location between Europe, Africa, and the Americas, the Iberian Peninsula is poised to play a key role in the future of global digital infrastructure.

Download the study

You can download the executive summary of the study from the link below. For the full version, please fill-in the form and we’ll email you a link to a copy.