Echelon and Iberdrola form JV to develop data centers in Europe
By Global Infrastructure Sherpa · Jul 1, 2025
Echelon Data Centres and Iberdrola have formed a strategic alliance, Echelon Iberdrola Digital Infra, to build and operate large-scale data centres in Europe, starting in Spain, with initial planned investments of more than €2bn.
Deal Analysis
Echelon Data Centres and Iberdrola have formed a strategic joint venture, Echelon Iberdrola Digital Infra, to develop and operate large-scale data centers across Europe, beginning in Spain. The partnership represents a significant investment of over €2 billion and aims to deliver 230 MW of data center capacity. This collaboration leverages Echelon Data Centres' expertise in data center development and operation with Iberdrola's strength as a global energy leader, particularly in renewable energy, potentially offering sustainable power solutions for the data centers.
The joint venture is a strategic move to capitalize on the growing demand for data center infrastructure in Europe. Iberdrola's involvement suggests a focus on powering these facilities with renewable energy sources, aligning with increasing sustainability demands from data center operators and their clients. The initial focus on Spain positions the JV to benefit from the country's growing digital economy and strategic location within Europe.
- €2 billion investment in European data center development.
- Partnership between Echelon Data Centres, a data center specialist, and Iberdrola, a global energy leader.
- Planned capacity of 230 MW, indicating large-scale data center projects.
- Initial focus on Spain, a growing market for data center infrastructure.
Market Context: The data center market is experiencing rapid growth driven by increasing demand for cloud computing, data storage, and digital services. Europe is a key region for data center development, with Spain emerging as a strategic location due to its connectivity, energy infrastructure, and growing digital economy.
Source Intelligence
KEY DETAILS
The Madrid Sur project will generate about 1,500 direct and indirect jobs. "This project will generate about 1,500 direct and indirect jobs."
Iberdrola has secured more than 700 MW in electricity connections in strategic areas near Madrid for potential new projects that result in an additional €6bn of investment. "Already, more than 700 MW in electricity connections have been secured by Iberdrola in strategic areas near Madrid for potential new projects that result in an additional €6bn of investment."
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Deal Size
Echelon Iberdrola Digital Infra has initial planned investments of more than €2bn, making it the largest European joint venture between a data centre developer and energy company.
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Capacity
The site has already secured a 230MW grid connection.
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Location
Echelon Iberdrola Digital Infra will develop capacity for hyperscale and AI technology companies. The company’s first development project will be Madrid Sur, a 160,000 sqm data centre campus.
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Announcement
Initially announced in July 2025, the joint venture received regulatory approval from the European Commission last month.
PARTIES MENTIONED IN SOURCE
E
Echelon Data Centres
developer
"Joint venture between Echelon Data Centres and Iberdrola is Europe’s largest strategic alliance between a data centre developer and an energy company"
I
Iberdrola
energy company
"Joint venture between Echelon Data Centres and Iberdrola is Europe’s largest strategic alliance between a data centre developer and an energy company"
C
CPD4Green
digital infrastructure subsidiary
"Echelon will own 80% of the JV, with Iberdrola owning the remaining 20% through its dedicated digital infrastructure subsidiary, CPD4Green."
high quality
Enriched Feb 19, 2026
Market Context
This deal is part of the Data Center sector in Spain.
1 of 129 Data Center deals tracked this month · Updated daily
Global Infrastructure Sherpa