Target Information

Acron Beka, a division of the Beka Group specializing in mergers and acquisitions, has served as financial advisor to Iberdrola in its strategic alliance with Echelon Data Centres. This partnership aims to establish a joint venture focused on the development and operation of data centres in Spain, marking the largest binding agreement of this nature in Europe between an energy company and a technology infrastructure developer.

The joint venture will feature an ownership structure of 20% by Iberdrola through its subsidiary CPD4Green and 80% by Echelon. This collaboration will leverage the strengths and capabilities of both organizations to drive growth in a high-potential sector. Iberdrola will contribute land connected to the electrical grid, ensuring a safe, clean, and competitively priced energy supply 24/7, while Echelon will handle permitting, design, marketing, and daily management operations.

Industry Overview in Spain

Echelon Data Centres, owned by Starwood Capital Group, is a leading operator of large-scale data centre infrastructures in Europe. The company develops and operates assets to meet the growing global demand for connected data and computing resources. With its headquarters in Ireland, Echelon has data centres and power generation facilities across Ireland, the UK, Europe, and North America.

The first project of this joint venture will be Madrid Sur, a complex spanning 160,000 m² with a capacity to handle 144 MW of data and an assured electrical connection of 230 MW. This facility is projected to create approximately 1,500 jobs and will meet its energy consumption—equivalent to 1 TWh—through an on-site solar photovoltaic plant, complemented by additional renewable energy supplied by Iberdrola.

This agreement further solidifies Iberdrola's position as a global leader in supplying electricity to data centres, with over 11 TWh sold to technology companies and infrastructure operators. Moreover, CPD4Green is dedicated to facilitating the development of data processing infrastructures, boasting a portfolio of sites for 700 MW in Spain with the potential to develop an additional 5,000 MW.

Rationale Behind the Deal

Through this collaboration, Iberdrola strengthens its leadership in the energy sector, particularly in delivering reliable energy solutions to data-intensive companies. The partnership positions both companies to capitalize on the exponential growth of the digital economy, providing innovative energy solutions while addressing sustainability concerns.

As data demands continue to surge, this joint effort represents a significant step forward in developing critical infrastructure necessary for supporting the digital economy in Spain and across Europe.

Investor Information

The Beka Group operates Acron Beka, which specializes in financial advisory services for high-value strategic operations. With a focus on sectors critical to the future economy, the group is committed to facilitating investment opportunities that align with the evolving nature of industry demands.

Acron Beka’s recent involvement with Iberdrola and Echelon is indicative of its strategic approach to supporting major infrastructural advancements, making it a key player in the advisory landscape for M&A transactions in critical sectors.

View of Dealert

Overall, the collaboration between Iberdrola and Echelon Data Centres appears to be a promising investment. It not only addresses the burgeoning demand for data centres but also aligns with global trends toward sustainability and renewable energy utilization. This partnership has the potential to create substantial economic impact and job growth in the region.

Acron Beka's role in this transaction showcases its expertise and strategic foresight within key sectors of the economy. The successful execution of this joint venture could set a precedent for future collaborations within the technological infrastructure landscape in Europe, further enhancing Spain's reputation as a data hub.

Given the increasing importance of data and energy solutions in the digital economy, this deal could yield significant returns for both investors and stakeholders involved, solidifying their positions at the forefront of a rapidly evolving market.

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