Oracle has revealed plans to invest over $1 billion in Spain over the next decade to strengthen its presence in the European cloud market. The investment will fund the construction of a third cloud region in Madrid and aims to enhance AI skills in Spain, positioning Oracle as a key player in the country’s digital transformation. By collaborating with Telefónica Spain, Oracle plans to leverage local expertise and infrastructure to comply with strict EU regulations. This move aligns with growing concerns about data localization and sovereignty in Europe.
The announcement has received support from Spanish government officials, highlighting the potential for job creation and economic growth. As demand for AI and cloud services increases in Spain and the EU, Oracle faces tough competition from cloud giants like Amazon Web Services, Microsoft Azure, and Google Cloud, all of which have been aggressively expanding their European presence.
Despite the competitive landscape, Oracle’s significant investment demonstrates confidence in the Spanish and European market. With a focus on delivering AI and a full suite of cloud services globally, Oracle is positioned to play a critical role in shaping Spain’s technological future. The company expects its cloud revenue to grow in fiscal 2025 and is focused on offering sovereign cloud solutions, particularly for the financial services sector.
The Zacks Consensus Estimate for Oracle’s fiscal 2025 revenue is positive, indicating year-over-year growth. However, investors should 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. The company’s continued investment in Spain reflects its commitment to expanding its presence in the country and capitalizing on the growing demand for cloud and AI services in Europe.
Article Source
https://www.zacks.com/stock/news/2291528/oracle-orcl-expands-cloud-presence-in-spain-with-1b-outlay