Malaga attracts major 1.2-billion-euro data centre set to start construction in 2027

The Andalusian regional government (Junta) approved on Tuesday the declaration of strategic interest for a project to build a data centre worth 1.2 billion euros.

Promoter Saltburn Holding SL, under the direction of business owner Rafael Benjumea, will build the future centre in the expansion area of Malaga TechPark.

The regional ministry of economy has supervised the designation after obtaining reports from the areas of industry, territory, sustainability, agriculture, culture and health.

According to the project report, the facility will be a Tier III/Tier III+ data centre. This technical standard guarantees high levels of redundancy and availability for storage, data processing, artificial intelligence and cloud connectivity services. The facility will cover a 71,415-square-metre site.

The technical design of the complex includes 100 megawatts of IT capacity, with projected electricity demand reaching 150 megawatts. This level of power requires a stable and high-capacity supply infrastructure.

Saltburn Holding's management has linked the start of operations to the successful completion of the electrical grid connection. The company estimates that, if everything goes according to plan, the data centre will become operational in approximately five years.

The declaration of strategic interest allows the project to benefit from preferential administrative processing and expedited deadlines. This exceptional measure will remain in effect until 31 December 2031.

Regarding the impact on employment, the developer anticipates the creation of 710 direct jobs during the construction phase of the building and technical facilities. Once the data centre begins commercial operation, it will require approximately 254 permanent direct jobs: primarily qualified professionals such as systems engineers and personnel specialising in the maintenance of critical infrastructure.

However, the total number of jobs for the project's development, including indirect positions, could reach up to 3,000 workers during the execution phase.

The choice of location within Malaga TechPark is based on technical criteria concerning connectivity and geography. The infrastructure's proximity to submarine fibre optic cable landing points helps reduce latency, an essential parameter for real-time data distribution.

Furthermore, the project aims to meet the growing demand for digital services both regionally and nationally, leveraging Malaga's established position as a hub for technology companies.

Saltburn Holding CEO Francisco Ruiz has stated that the group currently has the backing of a high-net-worth investor to undertake the project, although they will reveal details regarding the partner's identity in the coming weeks.

The financing and execution of the project are part of a broader expansion of digital infrastructure in Spain, where regions such as Aragon, Madrid and Barcelona already host similar facilities driven by major international corporations.

Regarding the electricity supply (a critical factor for the development of large data centres), the company has said that the process to guarantee the necessary power at the Cártama substation is following standard technical procedures. The final decision depends on coordination between energy companies Red Eléctrica and Endesa for the allocation of the requested power, a necessary preliminary step for Saltburn Holding to meet its five-year timeline.

The regional minister of the economy has been personally involved in the project. This underscores the importance the Junta places on attracting capital-intensive projects.

The strategic designation not only reduces bureaucratic delays but also places the project under the constant monitoring of the accelerator unit to resolve any potential bottlenecks in the permitting process.

The plot of more than 70,000 square metres in the TechPark is reserved for an infrastructure intended to function as a central node in the data architecture of southern Spain, provided the electricity grid can handle the projected demand loads.

The completion of this data centre would provide the Malaga technology park with large-scale computing and storage capacity, aligned with the cloud service and artificial intelligence deployment needs of the companies located there.

With Tuesday's approval, the project enters its crucial administrative phase.