Aragon's regional government said the US tech giant had applied for a permit to build data centers outside the city of Zaragoza, confirming a report by local newspaper El Heraldo.

The company's investment will be stretched over 10 years, the regional government reported.

Microsoft, which recently announced a €2.1 billion investment in data centers in Madrid, declined to comment on the plans in Aragon.

Microsoft, following its main competitor Amazon, cloud computing division AWS, is eyeing Aragon. Amazon announced last month that it would invest €15.7 billion over the next 10 years to build data centers in Aragon.

Amazon has said it will power its data centers entirely with renewable energy.

The Aragon region has a large wind energy capacity.

Zaragoza, the fifth largest city in Spain, has become a logistics and transport hub. It is located halfway between Madrid and Barcelona, ​​Spain's largest urban areas, and in the center of the main trade corridor connecting the Iberian Peninsula with France and the rest of Europe.