European solar power producer Edisun Power plans to direct power from its 941MW Fuencarral solar power plant in Madrid to data centers in the region.
Edisun cited the additional electricity demand from artificial intelligence and the increasingly stringent European regulations for the low-emission operation of data centers as the driving forces behind the decision.
The Fuencarral plant is currently under development and comprises three standalone projects: Pradillos (390MW), Fuencarral (291MW), and Loeches (260MW).
According to the company, the solar plants are distributed across nine separate sites to ensure sufficient open space between the projects.
The Loeches project completed the last major approval process at the end of September and received administrative construction authorization. The building licenses for Pradillos and Fuencarra are close to being finalized.
Edisun has launched a process to attract infrastructure funds, private equity, and/or data center owners and operators to invest in the Fuencarral plant.
According to Edisun, discussions are underway with a consortium of banks to finance the project's construction. If Edisun cannot secure financing, the original owner, Smartenergy, has an agreement to purchase the plant back.
Edisun is also seeking to acquire additional Special Purpose Vehicles from Smartenergy to support energy supply to data centers. This includes securing a grid connection for additional energy purchases. In return, Edisun is selling its 159MW Italian project portfolio to Smartenergy.
Edisun was formed in 1997 and has been listed on the Swiss Stock Exchange since September 2008. The company owns 36 solar power plants in Switzerland, Germany, Spain, France, Italy, and Portugal. It has a secured portfolio of projects under development of 1.2GW.
The Madrid data center market is one of the largest in Spain, accounting for more than 60 percent of capacity in 2023. Currently, the city has 18 operational data centers operated by 16 providers, including Equinix and Global Switch.
The city has seen several notable announcements in 2024. In October, UAE data center firm Edgnex acquired land in Madrid to develop a 40MW data center. Located in the Vicalvaro region, the 236,805 sq ft (22,000 sqm) facility will go live in 2026.
In May, US data center firm Prime announced plans for a 40MW data center in Madrid. The facility will span 26,000 sqm (280,000 sq ft) and is estimated to commence operations in Q1 2025.