Interxion is building a second data center in Madrid in response to growing demand, the company announced Wednesday.

The data center, called MAD2, will be adjacent to the company’s existing MAD1 data center in Madrid’s “Silicon Alley”. It will be built out in two phases, 1.2MW of power and about 74,000 sq ft each.

David Ruberg, Interxion CEO, said the build was a response to a growing demand pipeline in the Madrid metro from “high-power application providers”, which include providers of cloud-based services, digital media and other IT services driven by connectivity.

“As the Spanish market leader and the only pan-European carrier neutral data center operator in the country, Interxion is ideally placed to meet this demand,” Ruberg said.

Interxion is planning to spend about €10m on the first phase of the facility.

Interxion is one of the biggest carrier-neutral colocation data center providers in Europe. The company currently has 29 data centers in 11 European countries.

It is connected to 18 European internet exchanges, and connectivity in its data centers is provided by more than 400 carriers and ISPs.

Interxion reported €65.8m in revenue for the first quarter of 2012 – a 14% increase year over year. As of the end of the quarter its recurring revenue was at €62.3m – a 15% increase year over year.