Merlin Properties Halts Data Center Plans in Andalusia Due to Power Supply Issues
Merlin Properties has abandoned its plans to develop data centers in Andalusia due to insufficient long-term electricity supply guarantees. Despite this withdrawal, the company's overall strategy for data centers remains unchanged, with ambitions to reach 274MW capacity across Spain, requiring over €2 billion in investment. The issue in Andalusia highlights broader challenges within the Spanish electricity grid, where access requests for data centers have exceeded 100GW, creating pressure on infrastructure and delaying new investments.
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Merlin Properties has halted plans for data centers in Andalusia due to a lack of guaranteed long-term electricity supply. CEO Ismael Clemente stated that without firm power guarantees, the company cannot proceed with developments in the region.
Although this withdrawal does not alter Merlin's overall data center strategy, which aims for 274MW capacity with over €2 billion investment across Spain, it underscores issues with network saturation affecting all developers. The Spanish electricity grid is under pressure, with access requests surpassing 100GW, complicating new investments in data centers and other sectors. Until infrastructure issues are resolved, regions like Andalusia may miss out on significant investment opportunities.
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