Iberdrola and Echelon Launch Europe’s Largest Energy‑Data Centre Joint Venture with 144 MW Madrid Sur Project

Iberdrola and Echelon Launch Europe’s Largest Energy‑Data Centre Joint Venture with 144 MW Madrid Sur Project

(IN BRIEF) Iberdrola and Echelon Data Centres have entered the largest binding energy‑to‑data‑centre agreement in Europe, forming a joint venture to build and operate hyperscale facilities in Spain. Iberdrola will own 20 percent, providing land with grid connections and round‑the‑clock clean power, while Echelon will hold 80 percent and manage permits, design, marketing and operations. Their first project, Madrid Sur, features 144 MW of computing capacity on 160,000 m², with a 230 MW secured grid link and 1 TWh annual consumption met by on‑site solar plus renewable imports. The centre aims to create 1,500 jobs and open by 2030. Spain’s role as Europe’s data‑traffic hub is underpinned by its fibre‑optic network, submarine cables, competitive renewable energy and robust grid infrastructure.

(PRESS RELEASE) BILBAO, 28-Jul-2025 — /EuropaWire/ — Iberdrola and Echelon Data Centres have forged Europe’s largest binding partnership between an energy provider and a hyperscale data‑centre operator to develop and run next‑generation data hubs in Spain. Under the joint venture, Iberdrola (via its CPD4Green subsidiary) will retain a 20 percent stake and contribute land parcels with grid connections, alongside guaranteed 24/7 power supply. Echelon, headquartered in Dublin and backed by Starwood Capital Group, will hold the remaining 80 percent, spearheading site permitting, design, marketing and operational management.

The venture’s inaugural project—Madrid Sur—will span 160,000 m², delivering 144 MW of computing capacity supported by a secured 230 MW grid link. Expected to consume around 1 TWh of electricity annually, the facility will rely on an on‑site solar photovoltaic array supplemented by Iberdrola’s additional renewable generation. Madrid Sur is projected to create some 1,500 jobs and begin operations before 2030.

“This alliance bolsters Iberdrola’s mission to supply critical infrastructure with secure, clean and cost‑competitive energy,” said David Mesonero Molina, Director of Corporate Development at Iberdrola. “Data centres are driving electricity demand growth, and by leveraging our grid‑connected sites and 24/7 renewable supply, we’re enabling world‑class facilities to thrive.”

David Smith, Chief Investment Officer at Echelon Data Centres, added: “Expanding into Spain has long been strategic for Echelon. The country offers unparalleled access to large‑scale renewables at some of Europe’s lowest tariffs, robust fibre‑optic and submarine cable links, and strong construction expertise. Partnering with Iberdrola allows us to deliver top‑tier data processing infrastructure to our clients.”

Iberdrola already delivers over 11 TWh of electricity annually to tech companies worldwide and, through CPD4Green, holds a Spanish site portfolio totalling 700 MW—with potential for an extra 5,000 MW. Spain has become Europe’s data‑traffic gateway, handling more than 70 percent of incoming continental data flows thanks to its advanced energy mix and resilient grid.

Media Contact:

Corporate Communication (contact for Media)
Tel.: +34 91 784 32 32
Mail: comunicacioncorporativa@iberdrola.es

SOURCE: IBERDROLA