Iberdrola and Echelon secure €2 billion for data centre joint venture

Iberdrola SA on Wednesday said it has closed a new joint venture company with Dublin-based Echelon Data Centres Ltd to build and operate large-scale data centres in Spain.

Iberdrola, a Bilbao, Spain-based electricity utility, announced its intention to partner with Echelon back in July.

In accordance with previous communications, Iberdrola and Echelon respectively hold a 20% and 80% stake in the joint venture company named Echelon Iberdrola Digital Infra.

The creation of EIDI is now backed by over EUR2 billion in planned investments, resulting in the largest joint venture in Europe between an energy company and a data centre developer.

Iberdrola confirmed that the newly formed company has already secured over 700 megawatts in electricity connections across strategic areas near Madrid.

Furthermore, the joint venture has a potential portfolio of 5,000 MW and plans new projects that could add more than EUR6.00 billion of investment.

"With the completion of this transaction announced in July 2025, and after obtaining the necessary regulatory approvals, Echelon Iberdrola Digital Infra will begin its commercial activity with a focus on hyperscale technology companies and providers of infrastructure and services for artificial intelligence, a sector with great growth potential," Iberdrola said.