Investment manager Azora, in collaboration with Core Capital, has announced the launch of the Quetta Data Centers platform with a planned investment of over 500 million Euros. This collaboration aims to establish a network of six highly efficient "Edge" data centers in Spain and Portugal. Upon completion, these data centers will deliver a combined data capacity exceeding 60 MW, all powered by 100 percent renewable energy sources, Azora said.
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Sustainable Data Solutions
Notably, they are set to become Iberia's first eco-efficient network of data centers, with a Power Usage Effectiveness (PUE) rating of less than 1.15. These Edge data centers represent a new category of data centers in the industry that are strategically located near urban centers, close to end consumers, to minimise data latency for end-users, Azora said. This strategic positioning aims to reduce data traffic with larger hyperscale data centers, which are typically situated farther away from urban areas.
Target Market
This investment with Quetta Data Centers marks Azora's entry into Iberian data center market, driven by the anticipation of robust growth fueled by increasing demand and favourable market dynamics, said the company. The term "Iberia" is often used to collectively refer to Spain and Portugal, which share the peninsula.
The portfolio of data centers is located in key metropolitan areas including Madrid, Barcelona, and Lisbon, leveraging the region's geographic advantages, renewable energy infrastructure, and proximity to crucial communication links such as intercontinental submarine cables.
Quetta Data Centers will cater to companies with high data traffic, such as content providers, IoT firms, and gaming companies, which demand minimal latency in data transmission. Reportedly, Quetta will leverage a team with more than 20 years of industry experience, alongside cutting-edge technologies geared toward addressing new environmental challenges in the data center sector.
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Construction Progress
Construction of the first data center in Madrid, located in Tres Cantos, has already commenced, with negotiations for land acquisition and construction contracts for the remaining facilities in advanced stages, said Azora.
Commenting on the development, Azora said: "The launch of Quetta is part of our strategy of investing in sustainable infrastructure. The digitalization of the economy offers very attractive investment opportunities in the data centers sector, especially those aimed at companies that offer streaming content, gaming, augmented reality, internet of things and other technologies such as artificial intelligence that will experience strong growth as the speed at which society and business consumes data accelerates."
"This investment marks our first entry into the Iberian data centers market, an asset class in which we hold a strong conviction and utilises our deep expertise in both the local real estate market and in developing and owning operationally intensive assets," Azora added.
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Core Capital and Quetta commented: "Quetta Data Centers seamlessly complements the current offerings in the Data Center market, addressing the demand for proximity with interconnected geographical coverage, low latency, and 100 percent green solutions. This creates synergies with existing market operators, both retail and hyperscalers, leveraging the excellent conditions of the Iberian Peninsula."
