Iberdrola and Echelon create a JV for the development of data centres: Advisors

Iberdrola and Echelon Data Centres, owner and operator of large-scale data centre infrastructure in Europe, have announced a strategic alliance (joint venture) to build and operate data centres in Spain. This is the largest binding agreement of its kind in Europe between an energy company and a developer of this type of technological infrastructure.

Through this collaboration, Iberdrola will hold a 20% stake through its subsidiary CPD4Green. Also, it will be responsible for identifying and securing land with connectivity to the electricity grid where the centres will be developed. In addition, it will supply electricity to the centres 24/7.

For its part, Echelon, a Dublin-based technology company owned by Starwood Capital Group, will own 80% of the company and will be responsible for the development, design, marketing and day-to-day management of the joint venture.

The first project of this joint venture will be Madrid Sur, a 160,000 m² complex that will offer 144 megawatts (MW) of data processing and already has a secured 230 MW electricity connection. This centre, which will create around 1,500 jobs and is expected to be operational before 2030, will require 1 terawatt hour (TWh) of power, which will be supplied by a solar photovoltaic plant to be built on site, supplemented by additional clean energy capacity from Iberdrola.

Advisors

CMS Albiñana & Suárez de Lezo advises Iberdrola. The transaction was coordinated by managing partner César Albiñana, Corporate/M&A partner Ignacio Zarzalejos, and Public Law and Regulated Sectors partner Juan Moreno, as well as lawyer Ana Vázquez from the Corporate/M&A area.

DLA Piper advises Echelon. The team was led by Joaquín Echánove, partner in the Corporate area, and Francisco Bachiller, legal director. Laura Santos, senior associate, and Pablo Marín, associate, also participated in the Corporate area. In the Energy area, advice was provided by Pablo Echenique, partner, Marta Clemente, legal director, and Marcos Gil, associate. On the Real Estate side, Fátima Rico-Villademoros, senior associate, and Rodrigo Iglesias, associate, participated. The Regulatory team consisted of José María Barrios, partner, María Velasco, associate, and Mateo Soler, associate. Finally, the Competition team consisted of Joaquín Hervada, partner, Rafael Maldonado, senior associate, and Miguel Higuero, associate.