Why Spain Should Be Your Next Network Expansion Target

Business
January 18, 2024

This European country is poised to make its mark in the cloud networking industry. Here’s why it should be the next addition to your enterprise network.

As digital transformation continues to change the business landscape, cloud networking is becoming more critical to productivity and revenue growth – in fact, according to Gartner, cloud will become a business necessity by 2028. And few countries are investing as much into advancing their networking capabilities as Spain.

With the country currently experiencing massive acceleration of data center operator and hyperscaler deployments, the data center market is expected to increase from $3.81 billion in 2022 to $5.28 billion in 2028.

So what can you expect from Spain’s digital landscape in the coming years – and how can your company benefit from choosing Spain as its next market?

Government plans

The Spanish government recently announced a global connectivity plan set to advance the use of cloud technologies throughout the country. In 2022 Pedro Sanchez, President of the Government of Spain said, “The investments already announced and future investments in data centers, cloud regions and submarine cables could turn our country into a connectivity hub in which 70% of the data traffic between the US and the EU passes through our country.”

This connectivity plan is already set in motion and includes:

Extension of ultra-fast broadband, with the goal to reach 100% of the population with coverage of more than 100 Mbps.
1G ultra connectivity in industrial zones, logistics centers, and other specific locations where data use is extremely intensive and robust connections are required to stay competitive.
A clear commitment to cross-border digital infrastructure to improve the attraction and development of data infrastructures and cloud technologies.

The investments already announced and future investments in data centers, cloud regions and submarine cables could turn our country into a connectivity hub in which 70% of the data traffic between the US and the EU passes through our country.
– Pedro Sanchez, President of Spain

A springboard to the world

Spain’s sizable economy is well-positioned to take advantage of the cloud revolution currently sweeping Europe. In fact, out of Europe’s 50 countries, Spain is the fifth-largest economically and its GDP is continuing to increase, making it an appealing global market. It’s also a popular launchpad to the wider Latin American market, as companies often build infrastructure in Spain and from there can launch to other Spanish-speaking countries.

Madrid represents 75-80% of Spain’s highly internationalized business sector and is experiencing such substantial data center growth that it could soon join the FLAP market (Frankfurt, London, Amsterdam, Paris) – the largest concentration of data centers in Western Europe. Spain is also the 11th-largest global exporter of commercial services at $115 billion, cementing the country as a gateway to the global market.

Services is the country’s top industry, with over a million companies operating in this sector. This industry alone provides a wealth of opportunities for cloud technology providers to partner with local companies and enter new global markets.

The growth of networking technology

The 2019 DESI Report (Digital Economy and Society Index) ranks Spain eighth among countries best prepared for 5G technology deployment, making it one of the most advanced countries in the world in this space. Spain also has one of the highest fiber to the home (FTTH) penetration rates of any country in the European Union.

It’s no surprise, then, that Spain is experiencing a massive increase in momentum when it comes to the deployment of data center operators and hyperscalers across the country. Thanks to the investments of major cloud players like AWS, Azure, Google, and Oracle (just to name a few), new cloud infrastructure regions, data centers, and colocation facilities are proliferating all over the country – and revenue forecasts promise continuous growth through to at least 2027.

While a large percentage of Spanish companies still have their infrastructure on premises, the market is quickly moving to the cloud for conformity—namely, architecting multicloud networks—bolstering this revenue growth.

Getting to Spain with Megaport

By expanding your network to Spain you can bring your enterprise to a growing economy, leverage international business opportunities, increase your revenue, and accelerate your digital transformation. It might seem overwhelming to break into the Spanish networking landscape – but what if someone else had already done the hard work for you?

Whether you’re a Spanish business looking to future-proof your network, or a global enterprise ready to leverage all the benefits of expanding to Spain, the fastest way to get started is to leverage a Network as a Service (NaaS) provider with global availability, like Megaport.

Megaport is now available in Spain, giving enterprises the ability to start networking there in minutes. Several Megaport enabled locations are already available in Madrid and Barcelona with more Spanish locations to follow shortly.

When you connect to Spain via Megaport, you’ll enjoy:

Global presence. In just a few clicks, you can place Megaport’s extensive global network at your fingertips. Get access to more than 800 data centers from over 100 unique data center operators and 280 cloud on-ramps all over the world. Plus, leverage more than 360 service providers including all major cloud providers, data center operators, network service providers, and managed service providers.
Scalability. Megaport’s elastic network fabric grows alongside you as your network complexifies and expands across regions and industries. Scale services and bandwidth up and down on demand, or on a schedule that aligns with the fluctuating demands of your market, so you’re never overpaying.
Stability. Megaport provides a 99.95% uptime SLA on our services so you stay connected to your mission-critical applications with reduced latency and jitter.
More control. Whether you want to level up your multicloud with Megaport Cloud Router, bring your network to the edge with Megaport Virtual Edge, or establish a dedicated internet connection for your enterprise with Megaport Internet, our extensive suite of solutions give you the control to architect the perfect network. For more services and solutions, visit our Docs Portal or chat to our support team who can help architect the perfect solution for your needs.

With a growing economy, expanding data center infrastructure, and commitment to cloud technology, there has never been a better time for businesses to capitalize on Spain’s networking industry. Partnering with innovative network infrastructure providers such as Megaport effortlessly opens your business to an extensive suite of possibilities, so you can harness the vast digital landscape and watch your business flourish.

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