Microsoft intends to spend $7.16 billion on new data centers in Aragon, Spain: report – Microsoft (NASDAQ:MSFT), Amazon.com (NASDAQ:AMZN)

Microsoft MSFT it is reportedly planning a $7.16 billion investment to build new data centers in Aragon, a northeastern region of Spain.

What happened: On Friday, Reuters reported that Microsoft had applied for permission to build data centers on the outskirts of Zaragoza. Aragon’s regional authorities confirmed the news following a report by local newspaper El Heraldo.

According to regional authorities, Microsoft’s investment will be spread over ten years. Microsoft, which recently announced a $2.25 billion investment in Madrid data centers, declined to comment on Aragon’s plans.

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This move by Microsoft follows its main competitor, Amazon AWS’s cloud computing unit last month announced a $16.8 billion investment over the next 10 years to build data centers in Aragon.

Aragon, thanks to its extensive wind energy capacity, is emerging as a significant cloud computing hub in Europe. Zaragoza, Spain’s fifth largest city, is a logistics and transport hub, located halfway between Madrid and Barcelona, ​​in the main trade corridor connecting the Iberian Peninsula with France and Europe.

Microsoft has not yet responded to inquiries from Benzinga.

Why is it important: Earlier this year, Microsoft announced plans to significantly increase its artificial intelligence (AI) presence and cloud infrastructure in Spain with a $2.1 billion investment over the next two years. This followed a $3.45 billion investment in Germany dedicated to artificial intelligence.

However, Microsoft’s rapidly growing cloud computing services have come under scrutiny. In May, a Spanish startup group filed a complaint against the tech giant’s cloud practices, alleging that Microsoft was using its dominant position in the markets for operating systems and traditional office software to force adoption of its Azure cloud.

Reduction: At the time of writing, Microsoft was trading 0.63% lower in Friday’s pre-market at $438.81 after Thursday’s close of $441.58, according to Benzinga Pro.

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Photo via Shutterstock

This story was generated by Benzinga Neuro and edited by Pooja Rajkumari