Tenerife Tech Sector Faces Space Shortage as Demand Outpaces Capacity
Tenerife is expanding its technology infrastructure with a 2.4 million euro investment to address a critical office space shortage as the island’s tech sector continues to experience rapid growth.
Tenerife’s technology sector has reached a turning point. After years of successfully attracting new businesses, the island now faces a new challenge: a shortage of space. Demand for office and land from tech companies has outpaced the capacity of the Island Council (Cabildo), leaving 41 businesses on a waiting list for space at the Tenerife Science and Technology Park (PCTT).
To address this, the Cabildo is updating its Innovation Master Plan. It has added 650,000 euros to the budget—bringing this year’s total investment to 2.4 million euros—to lease or buy between 3,000 and 10,000 square meters of new office space. This funding includes 400,000 euros for rent and 250,000 euros for promotional events like the "Lo Que Se Viene 2026" festival. These steps are vital to keep momentum in a sector that now supports nearly 15,000 jobs and contributes roughly 300 million euros to the local economy annually.
Cabildo President Rosa Dávila attributes this growth to a successful economic diversification strategy. The PCTT now hosts 63 companies—triple the number from three years ago—and the broader tech sector, including the Institute of Technology and Renewable Energies (ITER), now exceeds 100 organizations. These companies, working in fields ranging from AI and quantum computing to aerospace, operate across five physical locations and a virtual hub.
Success is driven by more than just tax incentives; it is fueled by the island's access to skilled talent. Innovation Minister Juan José Martínez notes that partnerships with the University of La Laguna and local research centers provide the high-level expertise companies need. As a result, global giants like Intel Capital, Samsung, Telefónica, Leonardo, Thales, and Astra now work alongside local innovators like Wooptix, Arquimea, EAVE, and Orbidi.
Key projects are also shaping the island’s future. These include the 21.3 million euro Canary Islands Satellite Constellation, led by Telespazio Ibérica, and a 10 million euro upgrade to the Teide and Anaga supercomputers at ITER. By increasing their processing power thirty-fold, Tenerife aims to establish itself as a leading hub for scientific research and advanced technology in Southern Europe.