Iberdrola and Echelon to launch data centres in Spain
The joint venture will develop large-scale data centres across Spain, starting with a 144 MW facility near Madrid powered by on-site solar energy.
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Spain: Iberdrola and Echelon Data Centres have announced a strategic joint venture to develop and operate large-scale data centre infrastructure across Spain. The partnership marks a significant step in meeting Europe’s growing data processing and energy needs.
Under the agreement, Iberdrola, through its subsidiary CPD4Green, will hold a 20 % stake, contributing a portfolio of sites totalling 700 MW with potential to expand by 5,000 MW. The Spanish utility will also be responsible for securing grid-connected land and supplying 24 / 7 electricity to the new facilities.
Echelon, majority-owned by Starwood Capital Group, will retain 80 % ownership and oversee development, design, marketing, and day-to-day operations.
The first project, Madrid Sur, will be a 160,000 m² data centre complex with 144 MW of processing capacity and an existing 230 MW electricity connection. Expected to become operational before 2030, the facility will consume around 1 TWh annually, powered in part by an on-site solar PV plant and supplemented with additional clean energy from Iberdrola.
“This agreement reinforces Iberdrola’s strategy of enabling the growth of data centres as a key driver of electricity demand,” said David Mesonero Molina, Iberdrola’s corporate development director.
Echelon CIO David Smith added, “Spain offers access to large-scale renewable energy at highly competitive prices. We’re pleased to enter this market with Iberdrola as a trusted partner.”
Spain is increasingly becoming a key digital hub, with more than 70% of Europe’s data traffic passing through the country, thanks to its fibre optic infrastructure, submarine cables, and abundant clean energy resources.
Source: SEI
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