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Spanish energy company Iberdrola seeks data centre partner

Written by Tue 16 Apr 2024

Spanish renewable energy company, Iberdrola, is looking for a partner to help the company step into the data centre industry.

According to a report from Bloomberg Law, Iberdrola is looking for a partnership to build out 200MW of data centre capacity by 2030, with an ultimate goal of a data centre empire totalling 1.2GW.

Iberdrola wants to create a joint venture with a partner with Iberdrola as the minority stakeholder, according to online reports and sources cited with knowledge of the matter. Financial advisors are scouting for a partner company for the joint venture, which could be worth up to £1.7 billion ($2.1 billion).

With a global footprint of data centres, Iberdrola hopes to generate additional users for its core product: renewable energy. Currently, the company is one of the largest renewable energy suppliers, counting more than 40,000 customers globally. Iberdrola also has Power Purchase Agreements (PPAs) with the largest companies in the data centre industry from Amazon, to Meta, and Vodafone.

The Spanish data centre market has an extremely strong outlook. According to Research and Markets, the data centre market in Spain is set to grow from £1.5 billion ($1.9 billion) in 2023 to £2.2 billion ($2.85 billion) with a compound annual growth rate (CAGR) of 6.99%.

This projected growth will be propelled by the increasing adoption of artificial intelligence (AI), 24/7 operations, and process automation, all of which are heightening demand for data centre services.

Iberdrola recently posted record results in renewables, totalling 10,500GWh of clean energy production in Spain during Q1 2024. This is a 19.4% increase over the same period in 2023. It also increased renewable energy generation year-over-year in the UK by 4.3%, in Mexico by 5.6%, and in the rest of the world by 30.4%.

Iberdrola looks to the UK

Iberdrola may also be looking to expand a foothold on energy in the UK. Reuters recently reported that the company was preparing a bid for UK’s Electricity North West. Bids are due early next month.

“Electricity networks are attracting investors’ interest as countries need to adapt decades-old grids from the traditional model of large, fossil fuel power plants to wind and solar power generation,” said the Reuters report.

With Iberdrola’s experience in renewable energy, a utility company like Electricity North West could be an opportunity to invest in a region ready to adapt an existing grid to renewable energy.

In November, Prime Minister Rishi Sunak unveiled a substantial £29.5 billion ($37.2 billion) investment in the UK tech, life sciences, renewables, housing, and infrastructure. This investment is set to create thousands of jobs across the country in these key areas.

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Written by Tue 16 Apr 2024

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