The Iberian Peninsula is going to play an essential role in the future of interconnections and digital communications due to its strategic geographical position, as Ivo Ivanov, CEO of DE-CIX, assured Byte TI within the framework of the first Atlantic Convergence conference. , organized precisely by his company and which is being held these days in Lisbon. It is a unique forum for companies, institutions and suppliers of the Atlantic digital infrastructure value chain to participate in discussions and foster collaboration.
The Forum makes perfect sense, given that the Iberian Peninsula is becoming a pole of attraction and is on its way to becoming a regional megahub, becoming an alternative gateway to Europe for international data flows, according to the study. made by one’s own DE-CIX. Ivanov stated that “the Atlantic is the busiest and most competitive transatlantic data route in the world. Furthermore, with the arrival of applications that are increasingly sensitive to latency – from digital entertainment and the cloud to artificial intelligence, financial services, telemedicine and autonomous driving – the four centers that until now existed in Europe (Frankfurt , London, Amsterdam and Paris) cannot satisfy the needs of the Old Continent on their own. For this reason, digital infrastructure has been spreading to other regions, bringing it closer to companies and individual end users throughout Europe. “We are also seeing how it is important to optimize data flows at all levels, from the local Internet service provider to large transcontinental links.” And this is where Spain and Portugal represent an opportunity for network operators and businesses to optimize their global data flows.
The Iberian Peninsula is becoming a pole of attraction and is on its way to becoming a regional megahub
Reality is also demonstrated with data and these are revealed in the study, presented at the same Forum, “The Iberian Peninsula: A next-generation regional mega hub”, which shows the great growth of the region in terms of digital infrastructure and investment over the last decade. And the data is revealing: for example, the number of exchange points has doubled in the region, going from 5 to 13 since 2014, and there has been a 1,200% growth in the number of aggregate networks that connect to these IXs, reaching more than 700 in 2024. With more than 100 data centers and about 1,000 megawatts (MW) of installed power, in addition to a strong renewable energy generation industry, this data foresees a great future for the digital economy of the region.
Likewise, the study reveals that submarine cables landing in Spain have grown by 83% since 2016, and in Portugal by 14%. By mid-2024, the cables connecting the Iberian Peninsula numbered 35, with another five under construction that will be operational in the next 2 years. Also in the last decade the number of exchange points has increased, with important centers in Madrid, Barcelona and Lisbon. Of them, the largest in the region is DE-CIX Madrid, which today has about 230 connected networks. The increasing diversity of the Iberian ecosystem has attracted new regional and international networks to the region. In the last ten years, international networks connected to exchange points in Spain alone have grown by more than 800%, in parallel with Spanish national networks, reaching 160 in 2024. For their part, in Portugal, international networks They have gone from being on par with the national ones to representing around 75% of the interconnection ecosystem.
Data center growth
Currently, the Iberian Peninsula is experiencing an unprecedented boom in data center construction. Data centers are spread throughout the Peninsula, but here Ivanov, in conversation with Byte TI, highlighted the positioning and advances that Madrid is making: «The digitalization of Madrid is not only about adopting new technologies, but about leading the change and foster innovation to create a sustainable, efficient and prosperous future. Examining the results of Madrid’s ambitions, we look through the lens of the five pillars of a digital hub.
The De-CIX study indicates that Madrid, with more than 160 megawatts (MW) of installed capacity, will consolidate itself as the sixth largest European market in 2024, with a growth in its installed capacity by more than 356% in the coming years. However, there are also projects to develop data centers in other cities on the Iberian Peninsula, such as Barcelona, Lisbon and Sines. In addition, technology giants such as Microsoft, Google, IBM, Oracle, AWS have announced multimillion-dollar investments in some regions of Spain. On the other hand, the opportunity to power data centers with 100% renewable energy, largely from hydroelectric, photovoltaic and wind production, has attracted investments from other market players. The Sines Start Campus mega data center, which will be the largest in Europe powered exclusively by renewable energy, is a clear example of this trend.
The need to diversify transatlantic data routes, currently concentrated in the FLAP markets (Frankfurt, London, Amsterdam and Paris), has placed the Iberian Peninsula in the spotlight. Given the vital importance of these data flows for the economic relationship between the EU and the United States, which represents more than 85% of Europe’s global data traffic and close to half of that of the United States, the peninsula is positioned as a node. strategic to guarantee the continuity and security of these communications. And more than 90% of companies based in the EU transfer data to and from the United States.
“The Iberian Peninsula occupies a unique position to act as a digital gateway between Europe and the rest of the world,” explains Serge Radovcic of Dstream Group, co-author of the study. «With its strategic location on the shores of the Atlantic and the Mediterranean, the peninsula offers the shortest routes to North and South America, Africa, the Middle East and the rest of the areas. Together, the Iberian markets form a strong network that positions the Iberian Peninsula as a formidable player in the global digital landscape, capable of attracting investment and driving technological advancement. In this sense, the willingness of each market to expand, complement each other and collaborate with neighboring countries is crucial for the region to prosper on a larger scale.
