Data centres: “despite high demand, we are in a phase of sustainable expansion that can go on for years”

Interest in the data centre sector is growing steadily year on year. In the Madrid region alone, this industry, which is key to the digital economy, is expected to attract investment of up to 38 billion euros. We talked to Irving Cano, Director of Project Management at Quark, a firm specialising in data centres, about… Continue reading Data centres: “despite high demand, we are in a phase of sustainable expansion that can go on for years”

Interest in the data centre sector is growing steadily year on year. In the Madrid region alone, this industry, which is key to the digital economy, is expected to attract investment of up to 38 billion euros. We talked to Irving Cano, Director of Project Management at Quark, a firm specialising in data centres, about the current state and immediate future of this exciting market.

What is your assessment of the data centre construction landscape in Spain?

It is clearly very positive. This is a sector that is growing very significantly year after year. Taking Madrid as a reference, we can see an increase in the growth rate of more than 25% this year.

Although there could be concerns about a possible economic bubble, the comparison of installed capacity in Spain with other countries suggests that we are still in a phase of sustainable expansion, with expectations of maintaining this trend for several years. At Quark, we corroborate this positive evolution, participating in projects that are increasing in magnitude and complexity, both in design and construction, and that are also gaining in cross-cutting international scope.

The "Madrid Data Centre Sector Report 2024-2030", prepared by SPAIN DC, projects an estimated investment of 38 billion euros in data centre projects up to 2030, conditional on the collaboration of government entities. This investment would reflect the growth potential and confidence in the long-term strength of the sector.

What are the trends in data centre construction in the country?

The trends that are currently emerging in Spain, thanks to the global market, are the same trends that are being experienced worldwide in terms of the functionality of the data processing centre. The adoption of artificial intelligence and its technical implications represent a global trend. However, design and construction vary significantly between countries due to local regulations.

In construction, the trend is towards prefabrication and component replacement rather than repair. This is a very dynamic sector where time to market is essential.

On the design side, the emergence of artificial intelligence has introduced unprecedented challenges, substantially altering traditional data centre requirements.

There is also a growing specialisation in the sector at all levels. Specialised expertise has become an invaluable resource, not only in design but also in construction management, where dedicated teams with expertise in managing these assets are essential.

At Quark, together with industry leaders, we have created innovative technology solutions that meet these emerging demands, which will become established trends in design and construction for years to come.

What are the main challenges for data centre construction in Spain?

There are many challenges ahead of us. Some are inherent to the construction activity itself and are therefore common to all sectors of the industry. These include a shortage of skilled workers, rising material costs and declining quality of workmanship, among other problems.

Of particular concern is the inefficiency in administrative dealings with government entities, a situation that has become endemic and chronic. It is disheartening to observe how important investments are being withdrawn from Spain due to delays in the granting of permits.

However, the most significant challenge for our country is the accessibility of electric power. The complexity and uncertainty surrounding the contracting of electrical power should not be so overwhelming. Fortunately, some administrations, such as that of Aragon, have recognised the opportunity offered by the sector and, with a projected investment of more than 15.7 billion in the coming years, are committed to the steady development of the region.

How is the site selection for the construction of data centres in Spain shaping up? Which regions are best to invest in?

The criteria for selecting a location for the construction of a data centre is also subject to certain changes these days. The perfect location does not exist and that is something that those of us in the industry know. Currently, finding a site for a campus-type complex with more than 150 MW, an area of 200,000 m2, close to the city, without environmental risks, with a favourable climate, guaranteed connectivity and access to green electricity, is an extremely complex task. At Quark, as part of our services, we provide Technical Due Diligence services, as well as technical-economic feasibility studies, and we are aware of these limitations and constraints.

Nowadays, the availability of electrical power has become the primary criterion for the choice of a site. In addition, in the near future, there will be a requirement for the energy to come from renewable sources.

Spain has a unique opportunity to lead in digital infrastructure, thanks to its excellent connectivity, its advanced position in renewable energies (second only to Germany) and the quality and management of its electricity grid, factors that position the country as an ideal location for the sector.

The search for locations in Spain is mainly concentrated in Madrid and Aragon. However, less electrically saturated communities, such as Castilla-La Mancha and Castilla y León, are emerging as viable candidates to host large-scale projects, backed by projects of regional interest in their provinces.


 What topics related to data centre construction in Spain are trending?

There is no doubt that the implementation of artificial intelligence in the fields of design and construction is a hot topic. We are in a transitional phase in which the established cloud computing market is giving way to artificial intelligence-driven data centres. It is therefore crucial to establish meticulous design criteria for the data centres that will be built in the coming years, bearing in mind that they represent significant economic investments, distributed in phases and with a long-term perspective.

In addition, there are other relevant areas within this sector that deserve further attention. These include: construction contracts under FIDIC standards, environmental certifications, health and safety requirements essential for the construction of such projects, as well as recent regulations issued by public authorities. These elements are fundamental for the sustainable development and effective regulation of the sector.

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