HomeAI NewsBusinessOracle’s Billion-Dollar Bet on AI and Cloud in Spain

    Oracle’s Billion-Dollar Bet on AI and Cloud in Spain

    New Cloud Region in Madrid to Enhance AI and Cloud Services

    • Oracle is investing over $1 billion in Spain to develop AI and cloud computing infrastructure.
    • The investment includes a third cloud region in Madrid, hosted by Telefonica España.
    • The initiative aims to boost the digital transformation of Spanish industries and comply with EU regulations.

    Oracle has announced a significant investment of more than $1 billion over the next decade to enhance its artificial intelligence (AI) and cloud computing capabilities in Spain. This strategic move underscores Oracle’s commitment to meeting the growing demand for advanced cloud services in the region.

    Expanding Cloud Infrastructure in Madrid

    As part of its extensive investment, Oracle plans to establish a third cloud region in Madrid. This new infrastructure will support Spanish industries, including the financial sector, by facilitating the migration of mission-critical workloads to Oracle Cloud Infrastructure (OCI). The move is designed to help organizations comply with regulations such as the Digital Operational Resilience Act (DORA) and European Outsourcing Guidelines.

    Telefonica España will partner with Oracle to host the new cloud region, adding to the existing Oracle Cloud Region in Madrid, which was launched in 2022. This partnership aims to provide low-latency access to cloud services, enhancing business continuity and addressing data residency requirements.

    Driving Digital Transformation

    The new cloud region will support public and private sector organizations in Spain to modernize applications, innovate with data, analytics, and AI, and enhance their digital transformation efforts. Albert Triola, country leader for Oracle Spain, emphasized the company’s dedication to aiding Spanish businesses in adopting cloud technologies. “We are reaffirming our commitment to helping Spanish organizations of all sizes and industries accelerate their adoption of cloud technologies to boost business performance,” Triola stated.

    Spanish Minister for Digital Transformation and Public Administration, José Luis Escrivá, praised Oracle’s investment, highlighting its potential to foster innovation and digital transformation across the country. “The investment announced by Oracle provides a significant boost that will help Spanish enterprises and public sector organizations innovate with AI and continue advancing on the path of digital transformation,” Escrivá said.

    Meeting Regulatory Requirements and Enhancing Capabilities

    Oracle’s initiative comes at a crucial time as financial services organizations face unique regulatory requirements due to the sensitive nature of their workloads. The new cloud region will offer enhanced capabilities for high availability, disaster recovery, and compliance with EU and industry-specific regulations. Oracle has developed practices to help customers in the financial sector comply with DORA and other key regulations, providing robust and secure cloud infrastructure solutions.

    Additionally, Oracle’s EU Sovereign Cloud in Madrid will assist customers with sensitive and regulated data, ensuring compliance with EU data privacy guidelines. This cloud region is operated by EU-based personnel, supporting workloads that require stringent data sovereignty and privacy measures.

    Collaborations and Future Prospects

    The collaboration with Telefonica España is a testament to the strength of Oracle’s partnerships. Sergio Sánchez, operations, network, and IT director at Telefonica España, highlighted the mutual benefits of the partnership. “Our partnership with Oracle has been paying off for decades. We continue to migrate part of our mission-critical infrastructure to Oracle’s cloud to be more agile in delivering innovative products and services to our customers around the world,” Sánchez said.

    Organizations across various sectors have welcomed Oracle’s investment. For instance, Banco Sabadell and Naturgy have expressed enthusiasm about the new cloud region, anticipating significant opportunities for utilizing new technologies such as AI to enhance their operations.

    A Broader Vision for Cloud and AI

    Oracle’s investment in Spain reflects its broader vision for cloud and AI. The company’s distributed cloud model offers greater control and flexibility, with public, dedicated, hybrid, and multicloud options tailored to meet diverse customer needs. Oracle’s focus on sovereignty and data privacy ensures that customers can confidently deploy and manage AI and cloud services.

    As Oracle continues to innovate and expand its cloud infrastructure, the company’s initiatives are likely to have a significant impact on the digital landscape in Spain and beyond. This investment marks a pivotal step in Oracle’s long-term strategy to lead in the AI and cloud computing sectors, setting a precedent for future technological advancements and collaborations.

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