Oracle is planning to invest more than $1 billion in Spain over the next decade to strengthen its presence in the European cloud market. The investment will focus on constructing a third cloud region in Madrid, which will help boost AI skills development in Spain and position Oracle as a key player in the country’s digital transformation. Oracle’s partnership with Telefónica Spain for hosting the cloud region demonstrates its strategy of leveraging local expertise and infrastructure.
The new cloud region will help Oracle customers comply with EU regulations, particularly beneficial for Spain’s financial services sector. Oracle also offers a separate EU sovereign cloud to emphasize data privacy and regional control, aligning with concerns about data localization and sovereignty in Europe. The announcement has been welcomed by Spanish government officials, highlighting the potential for job creation and economic growth.
The move comes as demand for AI and cloud services increases in Spain and the wider EU, with Oracle facing tough competition from giants like AWS, Microsoft Azure, and Google Cloud. Oracle’s investment showcases its confidence in the Spanish and European market, with the company positioning itself as the only hyperscaler capable of delivering AI and a full suite of cloud services globally.
For the first quarter of fiscal 2025, Oracle expects total cloud revenue to grow significantly, with cloud infrastructure services projected to grow faster than in previous years. The company’s focus on sovereign cloud offerings and industry-specific solutions, particularly for financial services, could be a key differentiator in the Spanish market. The Zacks Consensus Estimate for Oracle’s fiscal 2025 revenue and earnings indicates strong growth.
However, investors may want to wait for a better entry point due to intense competition and high valuation. Oracle will need to navigate EU data protection laws and meet the evolving needs of public and private sector clients to maintain its position in the market. Overall, Oracle’s investment in Spain signifies its commitment to the region and its ambitions for growth in the European cloud market.
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https://finance.yahoo.com/news/oracle-orcl-expands-cloud-presence-125000552.html
