NxN Data Centers is set to launch a €20 million Madrid facility by September 2026, marking a significant step in its shift from planned investment to operational capacity in Spain’s fast-expanding digital infrastructure market.
The company’s Madrid site, located near Juan Carlos I Park on Calle de las Abelias in Hortaleza, is being positioned as a high-security, AI-ready data centre aimed at clients with demanding requirements for resilience, cyber protection, continuity and digital sovereignty. The project covers about 8,500 square metres and is expected to use a waterless cooling system, a feature that will place sustainability alongside performance as a central part of its commercial pitch.
The facility is being developed as demand for computing capacity accelerates across Europe, driven by artificial intelligence, cloud services, financial technology, public-sector digitisation and stricter data-residency expectations. Madrid has become one of the Iberian Peninsula’s most active data-centre markets, competing for investment with Aragón, Barcelona, Valencia and Lisbon as operators seek locations with power availability, fibre connectivity, enterprise demand and proximity to major business districts.
NxN’s Madrid plan is part of a broader investment strategy that could reach up to €500 million across Spain and Portugal over five years. The company’s expansion is backed by InfraRed Capital Partners, which took a majority position in NxN in December 2025, alongside Adequita as a minority investor. The backing gives NxN access to institutional infrastructure capital at a time when data-centre development is becoming more expensive, power-constrained and technically complex.
The Madrid facility is also notable because it involves the conversion of an existing corporate property into critical digital infrastructure. Repurposing well-located buildings has gained traction in dense European cities where land is scarce, permitting can be lengthy and suitable grid connections are difficult to secure. For operators, urban retrofit projects can shorten market-entry timelines, though they also require substantial engineering work to meet standards for power redundancy, cooling, physical security and operational resilience.
NxN has framed the site around sectors that require robust and compliant environments, including cybersecurity, financial services, technology firms, public institutions and organisations managing sensitive workloads. Its design emphasis on redundancy and continuity reflects rising concern among enterprise clients about outages, cyberattacks and regulatory scrutiny. Demand for AI workloads is also changing the economics of data-centre development, with higher-density racks and specialised cooling systems becoming increasingly important.
The Madrid project follows NxN’s earlier development in Valencia, where the company has been advancing a separate facility in the Vara de Quart industrial area. That project involves an investment of about €60 million, a footprint of roughly 6,500 square metres and planned capacity of around 6MW. It is expected to generate more than 100 direct jobs and several hundred indirect roles during construction and operation. Together, the Madrid and Valencia sites indicate that NxN is building a regional platform rather than a single-asset operation.
Spain’s appeal to digital infrastructure investors has strengthened as hyperscale cloud providers and specialised operators commit capital to the country. Aragón has drawn multi-billion-euro commitments linked to cloud and AI infrastructure, while Madrid remains attractive because of its concentration of corporate demand, network connectivity, financial institutions and government functions. Valencia is gaining attention for its Mediterranean location, links to North Africa and the wider southern European market.
The sector’s expansion, however, is not without pressure points. Data centres require large and reliable electricity supplies, and grid access has become a decisive factor in project viability. Municipal authorities and developers also face questions over water use, noise, land consumption and the balance between economic development and environmental obligations. NxN’s use of waterless cooling in Madrid appears designed to address one of the more sensitive issues in a country where water stress is a growing political and environmental concern.
Competition is intensifying. Established operators, private equity-backed platforms, telecom-linked infrastructure companies and global cloud providers are pursuing capacity across Spain. Madrid already hosts a cluster of colocation, enterprise and hyperscale facilities, while Barcelona and Aragón are expanding their roles in cloud infrastructure. Investors are also watching Portugal as a complementary Iberian market, particularly for renewable energy access and submarine cable connectivity.
The company’s Madrid site, located near Juan Carlos I Park on Calle de las Abelias in Hortaleza, is being positioned as a high-security, AI-ready data centre aimed at clients with demanding requirements for resilience, cyber protection, continuity and digital sovereignty. The project covers about 8,500 square metres and is expected to use a waterless cooling system, a feature that will place sustainability alongside performance as a central part of its commercial pitch.
The facility is being developed as demand for computing capacity accelerates across Europe, driven by artificial intelligence, cloud services, financial technology, public-sector digitisation and stricter data-residency expectations. Madrid has become one of the Iberian Peninsula’s most active data-centre markets, competing for investment with Aragón, Barcelona, Valencia and Lisbon as operators seek locations with power availability, fibre connectivity, enterprise demand and proximity to major business districts.
NxN’s Madrid plan is part of a broader investment strategy that could reach up to €500 million across Spain and Portugal over five years. The company’s expansion is backed by InfraRed Capital Partners, which took a majority position in NxN in December 2025, alongside Adequita as a minority investor. The backing gives NxN access to institutional infrastructure capital at a time when data-centre development is becoming more expensive, power-constrained and technically complex.
The Madrid facility is also notable because it involves the conversion of an existing corporate property into critical digital infrastructure. Repurposing well-located buildings has gained traction in dense European cities where land is scarce, permitting can be lengthy and suitable grid connections are difficult to secure. For operators, urban retrofit projects can shorten market-entry timelines, though they also require substantial engineering work to meet standards for power redundancy, cooling, physical security and operational resilience.
NxN has framed the site around sectors that require robust and compliant environments, including cybersecurity, financial services, technology firms, public institutions and organisations managing sensitive workloads. Its design emphasis on redundancy and continuity reflects rising concern among enterprise clients about outages, cyberattacks and regulatory scrutiny. Demand for AI workloads is also changing the economics of data-centre development, with higher-density racks and specialised cooling systems becoming increasingly important.
The Madrid project follows NxN’s earlier development in Valencia, where the company has been advancing a separate facility in the Vara de Quart industrial area. That project involves an investment of about €60 million, a footprint of roughly 6,500 square metres and planned capacity of around 6MW. It is expected to generate more than 100 direct jobs and several hundred indirect roles during construction and operation. Together, the Madrid and Valencia sites indicate that NxN is building a regional platform rather than a single-asset operation.
Spain’s appeal to digital infrastructure investors has strengthened as hyperscale cloud providers and specialised operators commit capital to the country. Aragón has drawn multi-billion-euro commitments linked to cloud and AI infrastructure, while Madrid remains attractive because of its concentration of corporate demand, network connectivity, financial institutions and government functions. Valencia is gaining attention for its Mediterranean location, links to North Africa and the wider southern European market.
The sector’s expansion, however, is not without pressure points. Data centres require large and reliable electricity supplies, and grid access has become a decisive factor in project viability. Municipal authorities and developers also face questions over water use, noise, land consumption and the balance between economic development and environmental obligations. NxN’s use of waterless cooling in Madrid appears designed to address one of the more sensitive issues in a country where water stress is a growing political and environmental concern.
Competition is intensifying. Established operators, private equity-backed platforms, telecom-linked infrastructure companies and global cloud providers are pursuing capacity across Spain. Madrid already hosts a cluster of colocation, enterprise and hyperscale facilities, while Barcelona and Aragón are expanding their roles in cloud infrastructure. Investors are also watching Portugal as a complementary Iberian market, particularly for renewable energy access and submarine cable connectivity.
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