Oracle makes big bet on Spain's cloud computing boom with $1 billion investment

Oracle is stepping up its commitment to the Spanish cloud computing market with a major investment. The tech giant announced a plan to pour over $1 billion into establishing a third cloud region in Spain, further solidifying its presence in the rapidly growing European market.

This new public cloud region, located in Madrid, will cater to businesses of all sizes across various industries. It will offer Oracle Cloud Infrastructure (OCI) services, allowing Spanish companies to migrate their mission-critical workloads from traditional data centers to the cloud while conforming to regulations such as the Digital Operational Resilience Act (DORA) and the European Outsourcing Guidelines - EBA, EIOPA, and ESMA.

The investment reflects Oracle's confidence in the potential of the Spanish cloud market. Spain has emerged as a European hub for cloud computing, with a projected growth surge in the coming years. This expansion aligns with Oracle's broader strategy to gain a significant foothold in the European cloud landscape.

"We are reaffirming our commitment to helping Spanish organizations of all sizes and industries accelerate their adoption of cloud technologies," stated Albert Triola, head of Oracle Spain. The new region specifically targets key sectors like finance, where regulations like the Digital Operational Resilience Act (DORA) are driving the need for secure and compliant cloud solutions.

Partnership with Telefónica and AI Integration

Telefónica España will serve as the hosting partner for the new cloud region. This collaboration leverages Telefónica's established infrastructure and expertise within the Spanish market. Additionally, Oracle highlights the new region's potential to support businesses in adopting AI technologies. By providing access to powerful data analytics and AI capabilities, Oracle aims to empower Spanish companies to innovate and gain a competitive edge.

Oracle's investment is not an isolated event. Other major tech companies are also setting their sights on Spain's burgeoning cloud market. Microsoft recently launched a cloud region in Madrid, and Google established a Spanish region in 2022. This influx of investment underscores Spain's growing significance in the European cloud ecosystem.

"Over the next three years, the region of Madrid is expected to receive investments of more than six billion Euros from the cloud industry, which is critical to helping us build a digital economy capable of creating high-quality jobs, attracting investment, and retaining talent," said Miguel López-Valverde, councilor for digitalization, Government of the Region of Madrid.

The Race for the Cloud: Benefits for Spanish Businesses

The competition among tech giants like Oracle, Microsoft, and Google translates to advantages for Spanish businesses. The increased options and potential price wars can lead to more competitive cloud service offerings.

Additionally, the presence of these leading cloud providers opens doors for Spanish companies to leverage cutting-edge technologies and propel their digital transformation journeys.