• Data Centers: Exponential Investment volume growth

    January, 2022

Demand is on pace for another strong year for data centres in 2022. Spain will reach the levels of the so-called FLAP markets since this last year has given us a clear indicator that the sector it’s on an exponential growth to noteworthy also the reputation that Spain it’s gaining on this market by being is one of the most remarkable hubs due to its location and foreign interest of investment.

Data is often referred to as “the new oil”, due to our growing dependence on new technologies. This was highlighted last year as we increased our online working environments during the Covid-19 soaring data demand as a consequence of the development of IOT. Originating a huge development of Industry 4.0 making data centres a worthy alternative asset in international real estate.

The data centre sector is growing steadily and Spain is becoming the Digital Hub of Southern Europe. Being Madrid and Barcelona the main Hubs. We expect a boom in transactions in the upcoming years as data centres are already at the centre of the investment strategy of large institutional investors.

Reviewing these previous statements, we expect a total direct investment volume over c.€5,000 million up to 2023 considering the forecasted growth of 11% until 2023 in the data centre market which will represent a significant increase compared to the previous years.

The investors in Spain in this sector are mainly international. The exponential growth of data generated, it´s driving “strong demand for data centres to store, process and exchange information. Many wealth investors are betting on this sector, given its recurring cash flows”. Over the last few years, a variety of investors have entered this market, including socimis, asset managers, insurers, sovereign wealth funds & infrastructure funds, often through joint ventures or agreements with entities.