How Oracle Is Boosting AI and Cloud Computing in Spain

Oracle, one of the leading American technology firms, has recently revealed a massive investment exceeding $1 billion (€930 million) in Spain. The primary focus of this investment centres around advancements in artificial intelligence (AI) and cloud computing technologies. 


Oracle’s Existing Presence in Europe


Oracle’s presence in Europe is already pretty huge, with strategically located cloud regions in countries such as the United Kingdom, Germany, Switzerland, and the Netherlands. These locations enable Oracle to provide businesses across Europe with cloud solutions specifically tailored to local data residency requirements. 

Oracle’s infrastructure supports a diverse range of industries, from finance to healthcare, facilitating digital transformation and innovation within the European market. The company’s commitment is emphasised by its investment in ultra-modern data centres and advanced cloud technologies, ensuring low-latency access and outstanding support for organisations’ cloud computing needs in Europe.


How Will the Investment Be Utilised?


Over the span of ten years, Oracle plans to deploy this investment to establish a third cloud region in Madrid. This new cloud region aims to meet the escalating demand for Oracle’s AI and cloud services within Spain.


What Is a Cloud Region?


Contrary to popular belief, the “cloud” isn’t some mystical storage realm floating in the sky. It’s essentially a place for real data processing infrastructure; data centres, which are situated in specific, tangible locations. 

A ‘cloud region’ denotes the actual physical location where your public cloud resources are housed.

What are the Goals of Madrid’s New Cloud Region?


The upcoming cloud region in Madrid is strategically designed to facilitate the migration of diverse workloads, both for public and private sector entities. It aims to modernise applications, foster innovation through data, analytics and AI, and ensure compliance with stringent regulatory frameworks such as the Digital Operational Resilience Act and European Outsourcing Guidelines.


Regulatory and Legal Considerations


Oracle’s substantial investment in Spain, particularly in artificial intelligence (AI) and cloud computing technologies, requires strict compliance with various regulatory and legal considerations. Firstly, data privacy laws such as the General Data Protection Regulation (GDPR) are crucial. Oracle must ensure that all data processing activities related to AI and cloud computing adhere to GDPR principles, including lawful basis for processing, data subject rights, and international data transfers. 

Additionally, Spain-specific regulations, like the Spanish Data Protection Act (LOPDGDD) and the Spanish Law on Information Society Services and Electronic Commerce (LSSI-CE), impose specific obligations on entities handling personal data and providing digital services. Compliance with these laws involves implementing strong data protection measures, obtaining necessary consents, and ensuring secure data handling practices. 

Moreover, cybersecurity requirements under the Network and Information Security Directive (NIS Directive) demand Oracle to maintain resilient IT systems and promptly report cybersecurity incidents. Once they have addressed these regulatory and legal frameworks, Oracle can navigate its investment in Spain while safeguarding data privacy, ensuring cybersecurity, and maintaining regulatory compliance.


Partnership and Compliance Assurance


Telefónica España has been selected as Oracle’s partner to host this new cloud region, which is crucial for ensuring data residency compliance and meeting regulatory standards in sectors such as finance.


Commitment to Spain’s Digital Transformation


Albert Triola, Oracle Spain’s country leader, emphasised the importance of this investment for Spanish enterprises and public sector organisations. The initiative aims to accelerate the adoption of cloud technologies, particularly in small and medium-sized enterprises (SMEs) and the financial services industry, thereby enhancing business resilience and performance.


Impact on Spain’s Economy and Job Market


Cloud computing not only transforms traditional jobs, but helps create new ones too. Estimates for the European economy as a whole suggest that cloud computing created 1.6 million new jobs between 2008 and 2020, so we can safely assume that Oracle’s investment will employ thousands of Spaniards, as well as help boost the country’s economy.  


Global Strategic Alignment


This announcement aligns with Oracle’s broader strategy of expanding its global cloud infrastructure, as evidenced by recent collaborations with Google Cloud and OpenAI. Oracle’s commitment extends far beyond just Spain, with plans to invest over $8 billion in Japan over the next decade to support cloud and AI infrastructure.

By making these strategic investments, Oracle highlights its dedication to driving digital innovation and infrastructure development worldwide.