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Microsoft and Telefónica expand cloud partnership to boost Spain’s digital economy


Microsoft and Telefónica are expanding their partnership to help businesses capitalise on cloud technology.

Microsoft will deliver Microsoft cloud services – including Microsoft Azure, Microsoft 365, Microsoft Dynamics 365 and Microsoft Power Platform – from new datacentres in Spain.

The partners say their joint capabilities will allow their customers to deliver new services that require low latency, security and assured bandwidth, opening up new scenarios around 5G, edge computing and Industry 4.0.

Telefónica has also selected Microsoft as a cloud partner for its own internal digital transformation, focusing on flexibility and scalability improvements, optimisation of operations and cost reductions.


José María Álvarez-Pallete, Chairman and CEO of Telefónica, said, “The opening of a Microsoft datacentre region in Spain is a game-changer, a key milestone in our strategic partnership that will boost Spain’s industrial fabric and digital economy.”

“Cloud is one of the key priorities in Telefónica, as we announced in November, with the launch of Telefónica Tech, the new unit to boost the solid growth of digital services. This global strategic partnership with Microsoft will certainly help to achieve that objective.”

A new strategic collaboration framework between Telefónica and Microsoft will also provide joint go-to-market plans in Telefónica’s footprint.

Last year, Telefónica and Microsoft announced a partnership to combine Telefónica’s networks with the Microsoft Azure AI platform to design new telco services. This includes the use of Azure Cognitive Services for customer engagement and business processes; the creation of new AI-powered, in-home experiences for customers; and exploring the use of technologies such as AI, blockchain and edge computing for network transformation.