Oracle to Invest More Than $1 Billion in AI and Cloud Computing in Spain

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DateJun 20, 2024

Oracle is set to make a significant investment in Spain’s cloud and AI infrastructure, committing more than $1 billion to establish a third cloud region in Madrid. This strategic move aims to enhance the resilience of Spain’s financial sector and other key industries by leveraging Oracle Cloud Infrastructure’s (OCI) high performance, built-in security, powerful data, AI capabilities, and distributed cloud solutions.

Telefonica España has been chosen as the host partner for this new cloud region. This new public cloud region will empower Oracle’s customers and partners across various sectors in Spain, including the crucial financial services industry, to migrate their mission-critical workloads from traditional data centers to Oracle Cloud Infrastructure. This migration will help these organizations comply with regulations such as the Digital Operational Resilience Act (DORA) and the European Outsourcing Guidelines (EBA, EIOPA, ESMA). The third cloud region in Madrid will support both public and private sector entities in transitioning their workloads to the cloud, modernizing applications, and innovating with data, analytics, and AI.

Oracle’s position as a hyperscaler enables it to deliver over 100 cloud services across dedicated, public, and hybrid cloud environments worldwide. These services include the Oracle Autonomous Database, MySQL HeatWave Database Service, Oracle Container Engine for Kubernetes, Oracle Cloud VMware Solution, OCI Generative AI service, and OCI AI Infrastructure. This broad suite of services allows Oracle to provide comprehensive cloud solutions tailored to meet the diverse needs of its customers.

José Luis Escrivá, Spain’s Minister for Digital Transformation and Public Administration, praised Oracle’s investment, highlighting its potential to drive innovation and digital transformation in Spanish enterprises and public sector organizations. Miguel López-Valverde, Councillor for Digitalization in the Government of the Region of Madrid, echoed this sentiment, emphasizing the importance of public-private collaboration in developing cloud infrastructure. He noted that Madrid is expected to attract more than six billion euros in cloud industry investments over the next three years, which will be instrumental in building a digital economy that creates high-quality jobs, attracts investment, and retains talent.

EU Sovereign Cloud

Oracle also plans to enhance its EU Sovereign Cloud offering with a separate region in Madrid. This region will help public and private sector customers with sensitive, regulated, or strategically important data and applications move to the cloud, operated by EU-based personnel to meet EU guidelines and requirements for data sovereignty and privacy.

Albert Triola, Country Leader of Oracle Spain, emphasized the rapid adoption of cloud technologies by Spanish enterprises and public sector organizations. He highlighted that the new cloud region would help these organizations address data residency requirements and sector-specific regulations. Triola reiterated Oracle’s commitment to investing in Spain, aiming to boost the adoption of cloud technologies and improve business performance and resilience across all industries, including small and medium-sized enterprises and the financial services sector.

Low-Latency Cloud Services Spain

The addition of a new Oracle Cloud Region in Madrid would provide customers and partners with increased access to low-latency cloud services, enhancing their ability to derive value from their data. The new cloud region will also offer high availability and disaster recovery capabilities, supporting business continuity and regulatory compliance. Oracle’s investment will support financial services organizations in meeting the stringent regulatory requirements of their industry, including DORA and other key industry regulations.

Oracle’s cloud architecture would allow it to deploy dedicated cloud regions within customer data centers and scale public cloud regions rapidly. This flexibility ensures that Oracle can meet the needs of various countries and markets without compromising cloud capabilities. The upcoming third cloud region in Madrid will further strengthen Oracle’s ability to offer consistent performance, service level agreements (SLAs), and global pricing.

Leading organizations in Spain have welcomed the announcement of the new cloud region. Sergio Sánchez, Operations, Network, and IT Director at Telefónica España, highlighted the benefits of their long-standing partnership with Oracle, which has helped them deliver innovative products and services. Enrique Rodríguez, Director of Technology Services at Banco Sabadell, noted that the new cloud region would open up significant opportunities for utilizing AI technologies. Rafael Blesa, General Manager of Information Systems at Naturgy, expressed optimism about migrating critical infrastructure to OCI for improved security and resilience. Ravin Dhalani, CIO of MASORANGE, emphasized the role of cloud technologies in enhancing operational efficiency and productivity in the telecommunications industry.

Oracle’s distributed cloud services, including public, dedicated, hybrid, and multicloud solutions, would provide customers with greater control and flexibility. This comprehensive approach would ensure that Oracle can meet the diverse needs of its global customer base while maintaining high standards of performance and security. 

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