Energy and technology giants Iberdrola and Echelon form a strategic joint venture

 

The new company will allow the construction and operation of large-scale data centers in the country, with a strong commitment to sustainability and energy efficiency. Iberdrola, through its subsidiary CPD4Green, will hold the 20% of the participation and will be key in identifying and securing strategic land with optimal connectivity to the power grid. In addition, it will guarantee an uninterrupted supply of 24/7 electricity for operations.

 

For its part, Echelon, a company based in Dublin and part of Starwood Capital Group, will assume the 80% of the joint ventureHis role will encompass the development, design, marketing, and daily management of the complexes.

 

This agreement marks the most significant collaboration of its kind in Europe between an energy company and a data center developer, underscoring Spain's growing role as a digital hub.

 

 

The first major project of this alliance will be Madrid South, an ambitious 160.000 m² complex that will offer a capacity of 144 megawatts (MW) for data processing. This center already has a secured 230 MW electrical connection and is expected to generate around 1.500 direct jobsIt is expected to be operational before 2030, and its energy demand, estimated at 1 terawatt-hour (TWh), will be covered by a photovoltaic solar plant built on-site, complemented by additional clean energy from Iberdrola.

 

David Mesonero MolinaIberdrola's Director of Corporate Development highlighted that this agreement "reinforces Iberdrola's strategy of facilitating the development of data centers, which have become a key driver of electricity demand growth." He added that the alliance with Echelon will allow them to "leverage our portfolio of sites with access to electrical grid connections and our ability to provide these infrastructures with secure, clean, and competitive energy 24/7, 365 days a year."

 

From Echelon Data Centres, David SmithThe Director of Investments expressed his enthusiasm for entering the Spanish market, a strategic objective for years. Smith highlighted that "Spain offers significant benefits for our customers: access to large-scale renewable energy at some of the lowest prices in Europe and extensive construction and operating capabilities." He also underscored Iberdrola's relevance as a "global energy leader."

 

A High Growth Potential Business

 

Iberdrola is already a key player in energy supply for the technology sector, supplying more than 11 TWh to companies and data center operators globally. Its subsidiary, CPD4Green, has a promising portfolio of sites in Spain for 700 MW, with growth potential of another 5.000 MW.

 

Spain has established itself as the data gateway to Europe, with more than 70% of data traffic destined for the continent passing through the country. This is due to its robust fiber optic network, strategic submarine connections, availability of clean and competitive energy, and an advanced electrical grid—key elements that attract investment in data center infrastructure.