Merlin Properties leases its data centres in Spain to Meta

Merlin Properties leases its data centres in Spain to Meta

The socimi Merlin Properties has received significant backing for its foray into the data centre sector.

Meta, the parent company of Facebook, Instagram and WhatsApp, has become the main client for the company's three new data centres.

The construction of these data centres, located in Madrid, Barcelona and Álava, was completed at the end of last year. Each has a capacity of three megawatts (MW). The three infrastructures are currently in the expansion phase and are expected to add a further 24 MW in the first half of the year. In addition to these projects, Merlin plans to further increase its logistics portfolio with the construction of a fourth site in Lisbon during 2024.

With a projected investment of around EUR 600 million in this first phase, by the first half of the year, Merlin expects total capacity to reach a total of 58 MW in one year, with the addition of the Portuguese capital site.

In diversifying its portfolio, Merlin Properties has focused on the data centre segment. To this end, it has entered into a strategic agreement with Edged Energy, a subsidiary of US-based Endeavour, which specialises in cooling technology for servers

The agreement with the technology company Meta represents a significant consolidation for the socimi, as having a tenant of Meta's size from the outset contributes to strengthening its position in the data centre market. The firm has designed rooms according to Meta's specifications, an aspect that underlines the strategic importance of this partnership for the Spanish developer.

This type of data centre usually has a rental contract of between five and fifteen years. From these facilities, technology companies can operate internationally, especially in areas such as artificial intelligence, taking advantage of the excellent communication infrastructures available.

Meta's plans for logistics

The technology company Meta also has plans to build a data centre in the city of Talavera de la Reina, with an estimated investment of 750 million euros, subject to the relevant administrative procedures.

So far, Meta has not disclosed details of the agreement with Merlin, but there is speculation that it could be aimed at improving the user experience in its applications and strengthening its presence in Europe, in compliance with EU data privacy legislation.

Currently in Europe, the company has two major data centres located in Sweden and Ireland. In Spain, the company has acquired certain technology capabilities in Madrid through contracts with Digital Realty (formerly Interxion) and Equinix.

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