Spanish city Zaragoza continues to be targeted as a hub for the development of data centres, with oil company Repsol reportedly planning to invest up to €4 billion ($4.2 billion) in the area.

Spanish newspaper Expansion reported the news on Monday, citing unidentified sources close to the process, who confirmed that the data centres would be located near the northern Spanish city of Zaragoza.

A Repsol spokesman did not immediately respond to a request for comment.

The Zaragoza region is experiencing growth as a technology hub, with an increasing number of companies, including tech giants Amazon and Microsoft, investing significantly in the area. In June, Microsoft announced an investment of €6.69 billion ($7.16 billion) for the development of new data centres in the Aragon region, which includes Zaragoza. The investment is planned over the next decade and aims to position Aragon as one of the main cloud computing hubs in Europe, the firm said.

In the same month, Amazon Web Services (AWS) also announced a significant €15.7 billion ($17 billion) investment to expand its data centre presence in Aragon. The company said that the region's renewable energy resources was one of the main reasons for choosing the location.

In October last year, investment firm Blackstone announced the development of a large €7.5 billion data centre in Calatorao, near Zaragoza, which will serve as a storage hub for large multinational companies. Blackstone added that the project will cover 224 hectares and is expected to generate 1,400 jobs in the first phase.

Smaller firms, including Capital Energy-backed Box2Bit also recently announced a €3.4 billion ($3.69bn) data centre was being built at the Entreviñas industrial estate in Cariñena, southwest of Zaragoza in Spain’s Aragon region.

Known as Proyecto Ebro, construction work on the site is expected to begin in the fourth quarter of 2025, with plans to last for four years. Although the company did not share technical details, Jorge Azcón, president of the government of Aragon, said in a statement that the project will be “transformative for the region”, providing value to the Spanish economy and strengthening Aragon's technology sector.

The project aims to create more than 1,950 jobs in the construction and operational phases and will be powered by 100 per cent renewable energy, Box2Bit said.

Other areas in Europe have been targeted for the development of data centres and technology development operations over the past two years. In April last year, Amazon announced plans to invest €1.3 billion in its French operations, aiming to create more than 3,000 permanent jobs.

In a statement at the time, Amazon said that a significant part of the investment will go towards expanding the cloud infrastructure around Paris, to strengthen support for France's burgeoning generative AI ecosystem. The logistics infrastructure in the Auvergne-Rhône-Alpes region is also under plans to be upgraded.

In May last year, Alphabet-owned Google announced plans to invest an additional €1 billion (£861 million) into the expansion of its data centre campus in Finland.

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