This chapter examines Spain’s transport, telecommunications, and energy infrastructure as a critical enabler of entrepreneurial activities. It constitutes the fourth of the ten elements of the entrepreneurial ecosystem framework used to assess the country’s ecosystem. The chapter identifies strengths and areas for improvement, presents an international example for inspiration, reviews recent policy developments, and offers recommendations for further progress in the infrastructure domain.
Entrepreneurial Ecosystem Diagnostics of Spain
Abstract
Infrastructure (both physical and digital) is a foundational enabler of productive entrepreneurship. Reliable transport systems (roads, railways, airports, ports) facilitate access to markets, suppliers, and customers, while digital infrastructure (broadband, mobile networks, cloud services) allows start-ups to engage in e-commerce, access global talent, and integrate into digital value chains (Revoltella et al., 2016[1]). As set out in (OECD, 2023[2])), such connectivity reduces transaction costs, accelerates time-to-market, and increases competitiveness. Similarly, (Isenberg, 2010[3]) and (UNDP, 2025[4])) emphasise that well-developed infrastructure enables knowledge exchange and collaboration across innovation ecosystems, promoting the growth of high-potential firms. In this context, energy, water, and waste infrastructure are also critical, as they directly affect operational costs and sustainability – factors that are particularly important for manufacturing and science-based start-ups (Delorme and Haigh, 2021[5]).
At the same time, infrastructure plays a crucial role in shaping the inclusiveness and resilience of entrepreneurial ecosystems (Audretsch, Heger and Veith, 2015[6]). Gaps in digital or transport access – especially in rural or peripheral regions – can create barriers to entry and reinforce territorial inequality (OECD, 2022[7]). Conversely, targeted infrastructure investments can support the diffusion of innovation and entrepreneurship beyond core urban centres (Marshalian, Chan and Bournisien de Valmont, 2023[8]). For startups seeking to scale, robust infrastructure enhances their capacity to enter new markets and withstand external shocks.
Spain has strong infrastructure
Overall, Spain’s infrastructure quality is very good overall, high performance relative to the other European OECD countries on the quality of transport infrastructure and the cost of electricity. Other aspects of this element are essentially in in line with other European OECD countries (Figure 6.1).
Note: Data are presented as normalised scores obtained by applying min-max transformations to the raw values, where the max/min are equal to the sample mean +/- 2*sample standards deviations, relative to the average of data from the 2020-2023 period. 2016-2020 scores are anchored to the 2020-2023’s data and must be interpreted as relative performance the 2020-2023 period.
Spanish transport infrastructure capabilities are good
Good transport and digital infrastructure are necessary for startups to exchange goods, services, and ideas. In addition, many startups are based on a digital business model or provide a digital service, and thus require strong ICT infrastructure. Overall, Spain’s infrastructure quality is in line with other European OECD countries.
Spain features a high-quality transport infrastructure, even within the already well-developed European OECD context. Other indicators of infrastructure quality confirm Spain’s strong performance on this aspect. For example, business perceptions data on the quality of roads from the World Economic Forum show that Spain’s business managers rate the quality of the road network in their country more positively than business managers in other leading European countries such as Sweden or the United Kingdom. Stakeholders interviewed for this study confirm the positive picture drawn by data and do not consider transport infrastructure as a barrier to entrepreneurship. Recent reviews of Spain’s economy also underline robust infrastructure (European Commission, 2024[9]) as a strong point of Spanish competitiveness.
According to Eurostat, Spain is the second largest European Union country by area (after France), with a relatively high population share living in an urban cluster (82.9%), but also some of the most sparsely populated areas in the EU in the interior of Spain. Hence, transportation, mobility and digital connectivity are critical for entrepreneurs seeking to develop and grow within the national market and then internationally.
Transportation networks in Spain are well developed with one of the most significant high-speed rail networks in the EU, a dense network of international and regional airports, including six of the top 30 airports in the EU by passenger numbers in 2023, and a well-developed motorway network.
Public transport in the main urban centres is also generally well-functioning with significant investment over recent decades in suburban rail, tram, metro and bus lines. Transport networks have historically been centred on Madrid with links to regional centres but other international hubs (e.g. Barcelona and Malaga for air transport) are developing and direct long-distance high speed train routes have begun to develop between major cities (e.g. Barcelona to Sevilla) without the need for stopovers in Madrid. Significant investments are being made through the Recovery and Resilience Plan (RRP), ERDF, and national and regional strategies. These include initiatives for green transport (such as the Sustainable Mobility Law and the railway infrastructure strategy), the roll-out of electric vehicle charging networks, and improvements to short-distance rail stations.
Despite this positive outlook, Spain needs to pay attention to emerging trends that might indirectly affect startup entrepreneurs. The EU strategy aims to double rail freight traffic by 2050 and increase transport by inland waterways and short sea shipping by 25% by 2030. Spain’s rail freight accounts for approximately 4% of total freight transport, which is significantly below the EU's average and targets and might require further investments. In addition, more should be done to make personal transport (car use, air transport) more sustainable and less intensive to reduce traffic congestion and air quality issues in the major metropolitan areas which could harm entrepreneurship by increasing health and economic costs (European Commission, 2024[9])
Digital data and technology access should be reinforced
Spain’s digital infrastructure (fixed broadband) quality is in line with the European OECD average, while Spain is still finalising its catch-up process with more highly digital ecosystems on mobile data use (expressed in Gigabytes per subscription/month). In terms of the average speed of internet connection, which captures average hardware capacity at country level, Spain’s average mobile page speed is exactly in the middle of the distribution of European countries for which this indicator is available. The average download speed for one page is between 7.5 and 9.5 seconds across all European OECD countries, and 8.14 seconds in Spain. However, as technology proceeds at a fast pace in this domain, it is important to constantly update both the hardware capacity and the use of the new software, equipment and network provider capabilities.
Overall, the interviewed stakeholders also consider digital infrastructure (e.g. broadband availability and mobile network coverage) as satisfactory, and broadband services sufficient, especially in urban hubs, and other evidence puts Spain as one of best EU performers on digital connectivity as measured by very high-capacity networks (European Commission, 2024[9]). Nearly 95% of households and businesses are covered by fibre-optic fixed broadband and gigabit-speed networks, while 5G coverage reaches approximately 96% of the population, including a rapidly growing share of rural areas (Ministry for Digital Transformation and Public Service, 2024[10]). Spain also performs well on digitalisation of public services.
The government is continuing to improve ICT infrastructure by investing in ultra-fast broadband, developing sectoral data spaces to enable data-driven innovation, and implementing digitalisation plans and a Cybersecurity Industry Support Plan to support tech-based startups. Although there are no specific measures addressing infrastructure under the Startup Law, the Law introduces incentives for digital nomads, which depend on robust digital infrastructure.
Spain also plays a significant role in the European High-Performance Computing Joint Undertaking (EuroHPC JU). The EuroHPC JU is a partnership between the EU and participating countries, aiming to develop and deploy advanced supercomputing and quantum computing infrastructure in Europe. Spain hosts MareNostrum 5, a world-class supercomputer and the EuroHPC quantum computer, MareNostrum-Ona, at the Barcelona Supercomputing Centre (BSC). Spain is also actively developing and promoting a quantum computing ecosystem. The EuroQCS-Spain project, led by BSC, aims to integrate analogue and digital quantum computers, as well as a quantum emulator, into a heterogeneous computing system. It is one of six sites selected in the EU. This type of research and technological infrastructure provides opportunities for startup entrepreneurs to develop advanced digital services and products.
Despite the availability of well-developed ICT hardware, usage of advanced digital solutions by businesses is below those of other OECD countries. Spain ranks sixth in Europe in the European Open Data Maturity Index. However, it performs relatively less well on the deployment quality component of the Index. Interviewed stakeholders are aware of the forward-looking data policy adopted by Spain, as demonstrated by the existence of a government department focused on broadening open data and access. Nonetheless, currently, they still point to digital governance, data infrastructure, and access to public data as areas for improvement. For instance, some startup founders report difficulties in accessing public and open data. While regulations do allow academic researchers to use government datasets relatively freely, startups do not enjoy the same level of data access. This limits the ability of startups to develop data-driven business models, particularly in sectors like health tech and mobility.
Another area for future development is data regulation (e.g. GDPR, data governance frameworks), which is often seen as a barrier for startups, particularly those operating in AI and digital health, who must navigate costly and restrictive compliance environments compared to non-EU markets like the US. Although most of these regulations are defined at EU level, Spanish authorities are perceived by stakeholders as adding layers of complexity to European regulation.
Limitations in data usage and governance are well-known to Spanish authorities, which are introducing programmes to develop data spaces and promote secure data sharing across companies and public entities. The Ministry for Digital Transformation’s data spaces initiatives have started to build the institutional capabilities and the underlying infrastructure necessary to promote data usage but acknowledge that many startups still find this ecosystem fragmented or abstract. There is a need for clearer support structures to enable smaller firms to benefit from these initiatives
Moreover, digital divides between urban centres and less populated areas remain, leading to initiatives to support startups in "empty Spain" through startup villages (an EU DG JRC initiative). There is also room for enhanced co-ordination between national and regional authorities to ensure even access to digital services and support mechanism.
Electricity and water supply is good
Energy and water supply and the quality of the power grid or water distribution are sound and well developed in Spain. Spain has significantly strengthened its energy system in recent years through sustained investment in renewable generation, reinforcing both supply security and long-term cost competitiveness.
While as in other European OECD countries, all areas of Spain have access to electricity, differences in electricity supply and distribution still unevenly affect electricity prices, which can represent an important factor for entrepreneurship, especially in sectors that are energy intensive. For example, training large language models can use about 433 000 kWh of electricity (Le Scao et al., 2022[11]). Spain has an advantage relative to several other European OECD countries in this area. Data from Eurostat show that in the first semester of 2024, non-household electricity prices (after taxes) in Spain were among the lowest in Europe (Figure 6.2). Only in Finland, Sweden and Portugal were the prices lower. In addition, during 2022-2023, Spain benefitted from the so-called Iberian mechanism extraordinary measures, which ended in December 2023. Through this mechanism, Spain and Portugal were temporarily allowed to cap electricity prices, in derogation to EU state-aid rules, justified by the Iberian Peninsula's limited interconnection with the rest of Europe (OECD, 2023[12]). Spanish prices remained low after the end of the “Iberian Exception” thanks to previous investments in renewable energy, which reduced exposure to fossil fuels prices, as well as to the introduction of new EU-compliant measures. These include cuts to the VAT on natural gas, which is allowed by the EU's VAT Directive (European Commission, 2025[13]).
Note: Data refer to the first semester 2024, first semester, including all taxes, for consumption from 500 MWh to 1 999 MWh - band IC
Source: International Energy Agency's (IEA) "Energy Prices" dataset
Investments in renewable energy have made electricity in Spain cheaper than in many other European countries, which can be an important factor for energy intensive data-driven entrepreneurship. In 2024, Spain added 7.3 GW of new renewable capacity to the national generation mix (6 GW from solar photovoltaic and 1.3 GW from wind), marking the largest annual increase on record and the sixth consecutive year of renewable integration. Over the last decade, renewable capacity has increased by 37 GW (77%), mainly driven by solar and wind power. Renewables now account for 57% of national electricity generation and 59% on the peninsula, setting a new historical record (Red Eléctrica, 2024[14]). As energy from renewable sources accounts for a relatively high share of the energy mix, this also gives Spain an advantage in terms of decarbonising the (digital) economy. While industrial sectors still generate a relatively high level of pollution, Spain is making significant investments in green hydrogen to boost its renewable energy sector and decarbonise industry. The national hydrogen roadmap has a target of 12 GW of electrolyser capacity by 2030 and aims to meet 74% of industrial hydrogen demand with green hydrogen by 2030. Spain accounts for 20% of green hydrogen projects that have been announced in the EU, making it a hub for cleantech innovation (Torres Vila, Mettler and World Economic Forum, 2025[15])
Spain’s energy transition presents an opportunity for entrepreneurial innovation, particularly in addressing the structural challenges of integrating renewables, improving grid reliability, and decarbonising industry and households. REPowerEU measures and the national hydrogen roadmap are enhancing infrastructure for renewables. Startups can play a pivotal role in this transformation by developing smart grid technologies that use AI and IoT to balance demand, manage loads, and monitor infrastructure in real time crucial as the share of intermittent solar and wind increases. New ventures can also advance energy storage solutions, from second-life EV batteries to peer-to-peer trading systems that enhance flexibility at the local level. For SMEs and households, start-ups can offer retrofit management platforms, subscription-based electrification services, and intuitive energy-efficiency apps. Spain’s growing hydrogen economy creates additional space for entrepreneurship in clean industrial applications and component development. Furthermore, startups can drive innovation in energy data systems by providing carbon accounting and emissions tracking tools tailored to SMEs and supply chains. These activities not only support national climate goals but also position Spain’s startup ecosystem to lead in green technology markets. With targeted support and access to instruments like Fondo Next Tech and innovation-friendly procurement schemes, startups could become key enablers of a faster, more inclusive energy transition.
Similarly, innovation is being applied to water management, spurring new solutions in precision agriculture, smart irrigation, desalination, water reuse, and digital water management. Spain’s position as a water-stressed country makes it an ideal testbed for scalable technologies with global relevance –particularly across the Mediterranean, Latin America, and parts of Africa. Startups innovating in water-related sectors can access pools of EU and national funding (e.g. Horizon Europe, PERTEs), benefit from new public procurement opportunities, and attract impact-oriented investors. However, despite extensive digital and energy transition efforts, there is no specific focus on energy cost mitigation for startups, which is particularly relevant for early-stage and industrial ventures.
Continued modernisation of electricity and water infrastructure remains important to support the integration of renewables, rising electrification, and increasing digital demand. Ongoing investments in grid reinforcement, storage capacity, and system flexibility will be key to maintaining reliability and supporting economic activity across sectors.
At the same time, water shortages are becoming an increasingly serious structural challenge in Spain, particularly affecting regions such as Andalusia, Murcia, and Castilla-La Mancha. For startups and scaleups, especially those in water-intensive sectors like agri-food, biotech, and tourism, this creates heightened operational risks, rising costs, and uncertainty around infrastructure reliability. As water becomes scarcer and more regulated, early-stage companies may also face compliance burdens, constrained site selection, and difficulty scaling in vulnerable regions.
In this context, water scarcity and resource constraints can act as a catalyst for mission-oriented entrepreneurship and the development of exportable deep-tech solutions. Planned improvements to water and wastewater systems offer further opportunities for startups innovating in sustainable resource management, efficiency technologies, and circular water use models.
While Spain is making progress in smart mobility and renewable energy, a more startup-oriented approach to infrastructure deployment, including support for water efficiency, decentralised energy, and digital inclusion, is needed to fully leverage entrepreneurial innovation as a driver of sustainable economic development. In this setting, Spain can draw from the experience of Sweden, in accelerating climate-tech ventures (Box 6.1).
Description
Sweden’s Energy Agency (Energimyndigheten) operates a comprehensive support system for early-stage and scaling climate-tech companies, with a strong emphasis on investment readiness and internationalisation. One of its flagship initiatives is the Investment Accelerator, launched in collaboration with Cleantech Scandinavia. It helps Swedish cleantech startups connect with international investors, preparing them to attract capital and scale globally. Selected companies – such as 2D fab (graphene), 3E Flow (energy-efficient water systems), and T. Loop (circular data centre energy solutions) – benefit from hands-on coaching, visibility at international events, and curated investor matchmaking.
Complementing this is the Global Innovation Accelerator, a 12-18-month programme supporting scale-ready companies with tailored business development services. This includes support in market mapping, certification and standards, and access to global trade fairs. Together, these initiatives form a dual-track pathway that links technological readiness with commercial scaling and global market access.
It has been estimated that through this programme, over EUR 90 million have been invested in over 250 companies, reaching an aggregate company valuation of over 3 billion EUR. The programme has also crowded in private investment. Each euro of public support has yielded about 15 euros of private co-investment. 80% of supported firms attract follow-on investment and 25 firms have gone through public listing. In addition, about 1 billion tonnes of CO₂ emissions have been avoided from portfolio innovations.
Success factors
Key to the success of the programmes have been i. the strategic investment facilitation role of the Investment Accelerator, which offers coaching, pitch preparation, and investor access for growth-stage climate tech firms; ii. the partnership between public entities and Cleantech Scandinavia, which combined public policy and market-based expertise; iii. tracking of participants after the programme to measure investment performance and environmental impact; iv. Internationalisation through both regulatory preparedness and market entry in key global regions.
Lessons for Spain
Spain could replicate sector-specific accelerators in clean energy and water technologies, linked to national missions and net-zero goals, by creating new partnerships with independent accelerators or investor networks to give more visibility and credibility in attracting investors. Spain’s innovation agencies (e.g. CDTI, ENISA) could support curated investor engagement and international pitch-readiness services.
Source: Swedish Energy Agency: https://www.energimyndigheten.se/en/news/2025/the-swedish-energy-agencys-accelerator-opens-doors-to-international-financing/ Swedish Cleantech Accelerators: https://swedishcleantech.com/business-opportunities/swedish-energy-innovations-accelerators/ IEA Summary of Swedish Energy Agency: https://www.iea.org/articles/swedish-energy-agency
2D Fab Investment News: https://2dfab.com/news/2d-fab-selected-for-the-swedish-energy-agencys-international-investment-accelerator/ T.Loop Investment Accelerator: https://www.tloop.se/blog/tloop-one-of-seven-companietloop-selected-to-the-swedish-energy-agencys-investment-accelerator-2024
Spain’s physical and digital infrastructure provides a solid foundation for entrepreneurship, with strong transport networks, competitive digital connectivity, and growing investments in renewable energy and high-performance computing. However, there is scope to increase the use of advanced digital tools by startups and to improve their access to strategic infrastructure outside urban hubs. Investments in freight sustainability, rural digital access, and utility reliability would also support entrepreneurship.
Strategic infrastructures like high-performance computing, AI factories, and hydrogen networks offer high-potential platforms for startup innovation in deep tech, cleantech, and data-driven services, and would be supported by efforts to communicate their availability to startups and scaleups by the development of SME-tailored interfaces.
Pressure on energy and water scarcity raise concerns about the resilience of the power and water supply systems. Water scarcity, in particular, could hit agri-food and tourism-linked start-ups. However, it may also create an opportunity for entrepreneurial innovation in smart water management and climate adaptation solutions.
The following policy actions are recommended to improve the infrastructure element of Spain’s entrepreneurial ecosystem:
Strengthen the access of startups and scaleups to strategic “technology infrastructures” housed in universities, supercomputing centres, and public research institutions (e.g. testbeds, AI sandboxes, pilot manufacturing, water labs). Simplify rules and interfaces to make these assets usable for early-stage firms.
Promote inclusive infrastructure development through better national-regional co-ordination and targeted incentives for digital and transport infrastructure in underserved regions (notably “Empty Spain”).
Leverage Spain’s strengths in renewable energy and green hydrogen by supporting startups and scaleups working on smart grid, storage, and decarbonisation solutions through sector-focused accelerators, innovation-friendly procurement, and test environments.
Advance open data and interoperability frameworks to reduce barriers for startups and scaleups in data-intensive sectors such as health, mobility, and energy, using sandboxes to balance data protection with innovation needs.
Use public procurement strategically to crowd in startup and scaleup innovation addressing infrastructure challenges (e.g. smart mobility, digital inclusion, water efficiency), supported by new tools like GovTech missions and challenge-based calls.
References
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