Finance
Spain's Iberdrola creates data centre joint venture with Ireland's Echelon
Published by Global Banking & Finance Review®
Posted on July 28, 2025
2 min readLast updated: January 22, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on July 28, 2025
2 min readLast updated: January 22, 2026
Iberdrola and Echelon create a joint venture to develop data centres in Spain, focusing on renewable energy and grid connections.
MADRID (Reuters) -Europe's largest utility Iberdrola and Ireland-based data centre operator Echelon are creating a joint venture to develop and operate data centres in Spain, the Spanish firm said on Monday.
Iberdrola sees booming demand for data centres as one of the main drivers of future growth both for its grids and renewable energy businesses.
With developments like artificial intelligence and cloud computing expected to increase demand for data centre capacity, companies like Iberdrola can benefit both from selling them energy and connecting them to the grid.
The Spanish firm will have a 20% stake in the joint venture, providing energy and land connected to the grid.
Echelon will hold the remaining 80%, handling permitting, design, marketing and day-to-day management of data centres.
The joint venture already has a project in the pipeline: a 160,000 square meters complex with a data processing capacity of 144 megawatts. It has already secured a 230 MW electricity connection.
Expected to be operational by 2030, its 1 terawatt hour demand will be covered by a planned solar plant and additional green energy supplied by Iberdrola.
Iberdrola already supplies 11 TWh of energy to data centres in countries such as Spain, Britain, the U.S. and Germany. Last year, it created a data centre unit, CPD4Green, and had been seeking a partner.
"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 secure, clean and competitive energy 24 hours a day, 365 days a year," said David Mesonero Molina, corporate development director of Iberdrola.
With the deal, Echelon Data Centres - whose major shareholder is private investment firm Starwood Capital Group - achieves its strategic goal to enter the Spanish market, Chief Investment Officer David Smith said.
(Reporting by Pietro LombardiEditing by Mark Potter)
A joint venture is a business arrangement where two or more parties agree to pool their resources for a specific project or business activity, sharing profits, losses, and control.
Renewable energy comes from natural sources that are constantly replenished, such as solar, wind, and hydroelectric power, providing sustainable alternatives to fossil fuels.
Data centres are facilities used to house computer systems and associated components, such as telecommunications and storage systems, crucial for managing data and applications.
Market opportunity refers to a favorable set of circumstances that enables a business to enter a market and achieve growth, often identified through market analysis.
Energy supply refers to the provision of energy resources, such as electricity or gas, to consumers or businesses, ensuring they have the necessary power for operations.
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