Iberdrola and Echelon Data Centres have closed their strategic alliance to create Echelon Iberdrola Digital Infra, a joint venture that will invest more than 2 billion euros to build and operate large-scale data centres in Spain. The partnership represents the largest European joint venture between an energy company and a data centre developer.

The transaction, originally announced in July 2025, has now been completed following the necessary regulatory approvals. Echelon Iberdrola Digital Infra will begin its commercial operations with a focus on hyperscale technology companies and providers of infrastructure and services for artificial intelligence, a sector with significant growth potential.

Madrid Sur Flagship Project

The first project of this alliance will be Madrid Sur, a 160,000-square-meter complex with 144 MW of data processing capacity. The facility has already secured a 230 MW electricity connection, providing substantial power infrastructure for the data center operations.

This flagship project is expected to generate approximately 1,500 direct and indirect jobs and will have an estimated electricity demand of 1 TWh. The Madrid Sur facility will include a photovoltaic solar plant and will receive additional renewable energy from Iberdrola to guarantee all its electricity consumption comes from clean sources.

Partnership Structure and Responsibilities

Under the agreement, Echelon will hold up to 80% stake in the joint venture, with Iberdrola holding the remaining portion. The two companies will divide responsibilities based on their respective expertise areas.

Iberdrola will contribute its experience in renewable generation and in the development and management of large electricity infrastructure. The company will be responsible for identifying and securing land with good connectivity to the electricity grid and ensuring 24/7 clean energy to the data centers.

Echelon will assume responsibility for the permitting, design, marketing, and operation of the data center facilities. This division of responsibilities leverages each company's core strengths in the partnership.

Expansion Plans and Market Position

The new company has already secured more than 700 MW and maintains a potential portfolio of 5,000 MW for future development. Iberdrola has secured more than 700 MW in electricity connections in strategic areas near Madrid and plans new projects that could add up to 6,000 million euros of investment.

With this alliance, Iberdrola consolidates its position as a leading energy partner for data centres. The company currently supplies more than 11 TWh per year to technology companies and data center operators worldwide, reinforcing its role as a key energy partner in the sector.

Spain's Strategic Digital Position

The partnership capitalizes on Spain's position as a European digital hub. Currently, more than 70% of data traffic to Europe passes through Spain, consolidating the country as a strategic digital hub in Europe thanks to its fiber-optic network and submarine connections.

Spain offers additional advantages, including high availability of renewable energy at competitive costs and an advanced electrical infrastructure. These factors make the country an attractive location for large-scale data center development and operations.

The joint venture positions both companies to capitalize on the growing demand for data center infrastructure, particularly in the artificial intelligence sector, while leveraging Spain's strategic advantages in digital connectivity and renewable energy resources.

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