UAE data center firm Edgnex is to develop a facility in Spain.

The Damac-owned company this week announced its expansion into Europe with the acquisition of land in Madrid.

EDGNEX 2
– Edgnex

The site has been acquired from real estate private equity manager ActivumSG and will host a 40MW data center. Located in the Vicalvaro region, the 236,805 sq ft (22,000 sqm) facility is due to go live in 2026.

Hussain Sajwani, founder of Damac Group, said: “We plan on investing €400 million ($435.8m) in our first 40MW investment in the Spanish data center space. Spain’s advanced connectivity, strategic location, and commitment to renewable energy make it an ideal hub for expanding our high-performance infrastructure.”

European real estate private equity manager ActivumSG made the sale on behalf of ActivumSG Fund VII. The company said it acquired the 240,000 sq ft (22,295 sqm) site in 2022 and secured power rights ahead of the acquisition. The deal guarantees 10MW immediately, with an additional 30MW by Q1 2026.

Tarun Tyagi, SVP of Damac, international business, added: “This site is one of the few prime locations in Madrid with secured, fully redundant power available within two years from two independent substations, ensuring rapid deployment in a market facing significant demand-supply challenges.”

UAE property firm Damac Group set up Edgnex (aka Damac Data Centres) in 2021. The company is building facilities in Saudi Arabia in Dammam and Riyadh that will deliver 55MW by 2025.

Edgnex is also developing a data center in Turkey in partnership with Vodafone.

Damac first announced plans to expand into APAC in October 2023; as well as a facility in Cyberjaya, Malaysia, the company is developing a 15MW data center in Jakarta, Indonesia, and another in Bangkok, Thailand.

Edgnex is also planning a data center in Amman, Jordan. Damac and Edgnex last year signed an agreement to build a data center and cable landing station at the new King Abdullah Economic City outside Jeddah in Saudi.

The company said further developments in Spain are likely in the future.

Sajwani added: “As we continue our global expansion, we will deliver scalable, robust solutions that serve the needs of hyperscalers and enterprise clients within a rapid timeframe. Alongside looking at additional investments in Madrid, we will look for opportunities in strategic locations such as Barcelona, Zaragosa, and other locations in Spain.”

The transaction is ActivumSG’s second powered land sale. In July 2024, ActivumSG sold a 190,000 sq ft (17,650 sqm) site in Madrid to data center developer and operator Pure DC for €11 million ($11.9m). The company said at the time it saw “further opportunity” in acquiring sites that could be prepared for data center development and sold to operators.

Saul Goldstein, CEO and founder of ActivumSG, said: “We pride ourselves on a flexible investment mandate and opportunity-led strategy. This sale is a testament to ActivumSG’s ability to leverage its deep local relationships, agility, and execution prowess. While powered land investments can be technically complex, our talented team in Spain has now completed two of these transactions with outstanding results.”