
MERLIN Properties and Edged Energy to Build Gigawatt-Scale AI Data Center Campuses in Spain
To wit, in a furtherance of its groundbreaking partnership in Europe, MERLIN Properties and Edged Energy are collaborating with the regional government of Extremadura, Spain, to establish two state-of-the-art data center campuses. These facilities, designed to support the burgeoning demand for generative AI and advanced computing, promise to set new standards for sustainability and efficiency in the data center industry.
A Vision for Sustainability and Growth in Extremadura
The data centers, located in Navalmoral de la Mata (Cáceres Province) and Valdecaballeros (Badajoz Province), will each deliver up to 1 GW of IT capacity. Featuring industry-leading innovations, the campuses will boast an average PUE of 1.15, ensuring ultra-efficient operations.
Edged says the project represents a significant leap forward in green data center development, aligning with Extremadura’s commitment to leveraging innovation and technology for economic and environmental progress.
“Our mission is to create data centers for positive impact, and we are proud to contribute to the Iberian Peninsula’s growing digital economy,” said Jakob Carnemark, CEO of Edged Energy. “The region offers unprecedented fiber connectivity with massive submarine connections worldwide and boasts reliable, abundant, and low-cost renewable energy.”
Harnessing Renewable Energy and Cutting-Edge Cooling Technology
The Extremadura facilities will operate entirely on electricity from renewable sources, capitalizing on the region’s vast sustainable energy capacity. Extremadura currently produces six times the electricity it consumes, making it an ideal location for gigawatt-scale data centers.
The project’s waterless cooling system, ThermalWorks, will enable the facilities to operate without consuming water, a critical innovation for such regions with limited water resources. The system will support ultra-high rack densities of up to 200kW per rack to accommodate the advanced computing demands of AI workloads.
Strategic Location and Connectivity
The Iberian Peninsula is rapidly becoming a major global hub for digital infrastructure, thanks to its exceptional connectivity. Spain’s position as a gateway for three of the world’s four fastest submarine cables provides unparalleled access to Europe, North America, South America, Africa, Asia, and the Middle East. This geographic advantage, coupled with the region’s renewable energy resources, positions Spain as a leader in sustainable digital infrastructure.
Edged added that the development of these campuses will create high-skilled jobs in construction and operations, while driving significant indirect economic benefits for the Extremadura region. By fostering economic, social, and demographic development, the project underscores the transformative potential of sustainable data center investments.
Expanding a Vision for Sustainable Infrastructure
MERLIN Properties SOCIMI, S.A. (MC:MRL) is the largest publicly listed real estate company on the Spanish and Portuguese stock exchanges. The company specializes in commercial real estate, including data centers, and is part of key indices such as IBEX 35 and Euro STOXX 600.
MERLIN Properties and Edged Energy are not new to groundbreaking projects. Since their partnership began in 2020, the two companies have launched data centers in Barcelona, Madrid, and Bilbao, with another campus under construction in Lisbon. These facilities are part of a broader strategy to build the largest network of waterless, carbon-neutral data centers in the Iberian Peninsula.
“Leveraging proprietary clean technologies and a strong working partnership, MERLIN and Edged are building infrastructure for the future,” the companies said in a joint statement. “This initiative showcases how other hot, dry climates with limited water resources can use cutting-edge technology to support an expanding digital economy and act as catalysts for change.”