Madrid, Spain, November 27, 2025- Echelon Iberdrola Digital Infra, a newly formed joint venture between Iberdrola and Echelon Data Centres, announced plans to invest more than EUR 2 billion (≈ USD 2.3 billion) in large-scale data centres across Spain, with its debut project set in the Madrid Sur region. The venture combines Echelon’s experience in hyperscale data-centre operations with Iberdrola’s renewable energy and grid infrastructure capabilities.
The Madrid Sur campus is designed to deliver 144 MW of processing capacity and has already secured a 230 MW electricity connection, ensuring sufficient power for high-density AI and cloud workloads. The facility will span approximately 160,000 square metres, and early projections indicate the creation of roughly 1,500 direct and indirect jobs, including roles in construction, operations, and research.
Under the joint-venture agreement, Echelon will hold an 80% stake, leading planning, permitting, construction, and ongoing operations. Iberdrola holds 20%, contributing land, grid access, and renewable power, including an on-site photovoltaic plant. The venture emphasizes clean-energy usage, with Iberdrola’s portfolio ensuring that the data centres will operate primarily on renewable electricity, reflecting both partners’ commitment to sustainability and low-carbon infrastructure.
The partnership has received European Commission approval, with regulators confirming no competition concerns, allowing the JV to proceed with development at full scale. The Madrid Sur project is expected to begin phased operations before 2030, with a broader pipeline targeting 200-300 MW of additional capacity by the end of the decade.
In a joint statement, the CEOs of Echelon and Iberdrola highlighted that the collaboration leverages each partner’s strengths: “Combining Echelon’s hyperscale data-centre expertise with Iberdrola’s renewable energy and grid infrastructure will enable us to deliver world-class, AI-ready facilities that meet Europe’s growing demand for sustainable digital infrastructure.”
The formation of Echelon Iberdrola Digital Infra underscores the growing trend of strategic energy–digital partnerships in Europe, where clean power integration, grid access, and operational scale are becoming critical differentiators in hyperscale and AI-focused data-centre investments. Analysts note that Madrid Sur’s combination of renewable supply and high-density compute capability positions the venture as one of the largest greenfield AI-centric developments on the continent.
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