Irish-owned data centre developer Echelon Data Centres has signed a deal with Spanish company Iberdrola to build and operate data centres in Spain.
The agreement is intended to expand Echelon’s international data centre portfolio, with 100% of its Spanish power infrastructure and energy supply needs provided by Iberdrola.
Iberdrola is a leading global renewable power producer and one of the largest electricity companies in the world.
As part of the deal, Echelon will be responsible for planning, design, commercialisation, and the day-to-day management of the centres.
While Iberdrola will source and secure suitable land plots with grid connectivity for data centre development, it will also ensure a continuous 24/7 supply of clean energy.
Under the agreement, Echelon will own 80% of the JV, with Iberdrola owning the remaining 20% through its dedicated digital infrastructure subsidiary CPD4Green.
Echelon Data Centres has more than 600 MW of capacity either operational or in planning in Ireland and the UK.
CPD4Green has already secured more than 700MW of power connections, including close to Madrid and in Aragon.
The first of the projects due to be constructed will be Madrid South, a 160,000 sqm campus, expected to be ready for service by 2030.
The site has already secured a power connection of nearly 230 MW.
An on-site solar PV facility will supply the DC with renewable energy, complemented by additional clean energy capacity from Iberdrola, fully meeting the data centre’s electricity needs.
Echelon’s major shareholder is Starwood Capital Group, a global private investment firm with approximately $115bn in assets under management in North America, Europe, and Asia.
Commenting on the new alliance, David Smith, Chief Investment Officer at Echelon Data Centres, said the combination of Echelon and Iberdrola would be a compelling partnership for Echelon’s customers in the Spanish market.
“Entering the Spanish data centre market has been a strategic goal for Echelon for several years," explained Mt Smith.
"Spain has material benefits as a market for our customers; a supportive regulatory and policy environment, high quality talent from both a construction and operational perspective and access to some of Europe’s lowest price renewable energy, in scale.
"Our partner, Iberdrola, is a world leader in building and operating generation assets and we are delighted to have this opportunity to partner together to deliver critical infrastructure for our customers.”
"This agreement reinforces Iberdrola's strategy of facilitating the development of data centres, which have already become a key vector for the growth in electricity demand," said David Mesonero Molina, Corporate Development Director of Iberdrola.
"The alliance signed with Echelon will allow us to value our portfolio of sites with access to electricity connection and our ability to offer these infrastructures safe, clean and competitive energy 24 hours a day, 365 days a year".
