Iberdrola, a Spanish electricity provider, has partnered with Echelon, an Irish hyperscale infrastructure specialist, to launch a joint venture targeting the development and operation of data centres across Spain. This structural partnership marks the creation of the largest joint venture of its kind in Europe between a utility company and a digital infrastructure operator. Both companies have formalised their project, with a capital structure of 20% for Iberdrola and 80% for Echelon.
A strategic alliance to meet growing demand
According to the information provided, Iberdrola, through its subsidiary CPD4Green, will contribute to identifying and securing land connected to the electricity grid, as well as guaranteeing a continuous power supply. Echelon, based in Dublin and owned by Starwood Capital Group, will oversee permits, design, commercialisation and daily operations. The agreement fits within the context of European data centre market growth, driven by digitalisation and increasing energy consumption in the sector.
The first project, named Madrid Sur, will cover 160,000 square metres and offer a processing capacity of 144 megawatts (MW), with a secured grid connection of 230 MW. The site will require an annual supply of 1 terawatt-hour (TWh) of electricity, largely provided by an on-site solar photovoltaic plant, supplemented by additional renewable capacity from Iberdrola.
An industrial model focused on energy performance
The investments needed for the construction of the complex are expected to create around 1,500 jobs before commissioning, scheduled prior to 2030. The project design meets the rapid growth in computing needs, especially for cloud and artificial intelligence sectors, and reinforces Spain’s energy competitiveness for international technology players.
Iberdrola, already supplying more than 11 terawatt-hours (TWh) of electricity to technology companies and infrastructure operators worldwide, is thus strengthening its vertical integration strategy in the data centre segment. The Spanish operator highlights the securing of grid-connected sites and the provision of competitive energy to support digital transformation.
Energy and digital integration outlook
The agreement allows Echelon to enter the Spanish market, recognised for its energy resources and construction capabilities. The expected synergies should address the continued growth in demand for digital services while supporting the deployment of new energy capacity. David Mesonero Molina, Director of Corporate Development at Iberdrola, stated that this initiative facilitates the development of data centres and responds to the rising power demand linked to the digital economy.
