Spain: Big Tech invests billions in Aragon's cloud storage
Renewable energy and streamlined processes attract major investments, but environmental concerns and economic impact remain contentious
The world's biggest tech companies are investing billions in cloud storage facilities in Aragon, Spain, drawn by its renewable energy sources.
Local authorities hope to benefit economically from the AI-driven data demand, while environmentalists criticize the high water and power usage.
Aragon, previously not a connectivity hub, has attracted Amazon's 15.7 billion euro investment to expand its data centers, and Microsoft's 2.2 billion euro project, with Meta expected to follow. These investments aim to boost storage capacity for generative AI.
Aragon's appeal includes cheap land, good links to economic centers, and abundant solar and wind farms. Amazon highlights the 100% renewable energy use. The regional government has streamlined processes to attract these projects, aiming to turn Aragon into a "European Virginia," a global data center hub.
However, ecologists warn of the environmental costs, particularly high electricity and water use, and potential uncontrolled development. Critics also question the economic benefits, but proponents argue the industry's positive impact on GDP and employment, claiming it's greater than the aeronautical industry.
The Aragonese government is developing a large technology park to attract both major companies and startups, envisioning technology as a driver of economic transformation beyond traditional sectors like agrifood, logistics, and automotive.
The dream is real…
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