DLA Piper advises Echelon (Starwood) on the creation of a joint venture with Iberdrola for the development of data centres in Spain

DLA Piper has advised Echelon DC Holdings Limited (a European operator of large-scale data centres owned by Starwood Capital) on the creation of a joint venture with Iberdrola for the development and operation of data centres in Spain.

The alliance, which represents the largest binding agreement in Europe between an energy company and a technology infrastructure developer, takes the form of a joint venture in which Iberdrola holds a 20% stake through its subsidiary CPD4Green, while Echelon holds the remaining 80% of the joint venture company. The first project of this collaboration will be Madrid Sur, a 160,000 m² complex with 144 MW of data processing capacity and a guaranteed 230 MW electrical connection. It is expected to be operational before 2030 and generate more than 1,500 jobs. The centre's energy demand, estimated at 1 TWh, will be covered by an on-site solar photovoltaic plant and additional clean energy supplied by Iberdrola.

The initial planned investment of EUR2 billion has been confirmed as the largest European alliance between an energy company and a data centre developer, and could triple to EUR6 billion in new strategic projects near Madrid. Iberdrola has already secured more than 700 MW in electrical connections and will strengthen Spain's role as a European digital hub, with more than 70% of data traffic to Europe passing through the country. This initiative is in line with the growing demand for infrastructure for artificial intelligence and cloud services, consolidating those involved as key players in the global data centre market.

DLA Piper provided comprehensive legal advice in the areas of corporate/M&A, energy, regulatory and competition, accompanying Echelon throughout all phases of the project, from the structuring of the joint venture to the negotiation of key agreements.

The team was led by Joaquín Echánove (partner in the Corporate department) and Francisco Bachiller (legal director). Laura Santos, senior associate, and Pablo Marín, associate, also participated in the Corporate side of the transaction.

In the Energy area, advice was provided by Pablo Echenique (partner), Marta Clemente (legal director) and Marcos Gil (associate). The Regulatory team was made up of José María Barrios (partner), María Velasco (associate) and Mateo Soler (associate). Finally, the Competition team was made up of Joaquín Hervada (partner), Rafael Maldonado (senior associate) and Miguel Higuero, (associate).

On behalf of Real Estate, Fátima Rico-Villademoros, senior associate, and Rodrigo Iglesias, associate, participated.

This transaction reinforces DLA Piper's position as a leading firm advising technology, infra and energy companies in Spain and consolidates its experience in high-impact strategic transactions and in the data centre sector.