Although the financial details weren’t confirmed, Spanish media suggest the deal may be worth hundreds of millions of euros as Microsoft prepares to invest more than €12 billion ($12.75 billion) across 17 European areas.

The datacenter will be located in San Sebastian de Los Reyes, a city of roughly 90,000 people located about 20 kilometers north of Madrid. Microsoft has planned two more projects in the Madrid area to provide cloud services, including Azure, Power Platform, Microsoft 365 and Dynamics 365, Spanish newspaper Cinco Dias reported.

Ferrovial

The construction contract is good news for Ferrovial, highlighting the importance of the strategic agreement it inked with Microsoft in February 2022. The Spanish firm has experience building digital infrastructure, having done similar work for Telefónica and many financial organizations.

The contract will significantly strengthen Ferrovial’s domestic construction business, which, like other publicly traded businesses in the sector, accounts for a tiny percentage of overall revenue (less than 20 percent). Although the organization ended the third quarter of 2022 with a construction backlog of more than €13 billion, Ferrovial Construcción remained unprofitable.

Microsoft EU Data Boundary

Microsoft started offering customers the option to store and process their user data within an EU Data Boundary for Microsoft 365, Azure, Power Platform, and Dynamics 365 services on January 1, 2023.

The tech giant builds on previous local storage and processing commitments, significantly reducing data transfers out of Europe and expanding its data residency offerings.

Microsoft plans to extend its EU Data Boundary to cover the storage and processing of more types of personal data, including data supplied while obtaining technical support.