Iberdrola sets up unit to help build data centres for customers
Adds context, background, details of new unit from paragraph 2
By Pietro Lombardi
MADRID, July 24 (Reuters) -Spanish power utility Iberdrola IBE.MC has set up a new unit to help its customers build data centres, its Executive Chairman Ignacio Sanchez Galan told analysts and investors on Wednesday.
The Spanish utility sees booming demand for data centres as one of the main drivers of future growth both for its grids and renewable energy businesses, Galan said in a call held on Wednesday to discuss the company's second-quarter earnings.
With developments like artificial intelligence and cloud computing expected to boost demand for data centre capacity, companies like Iberdrola can benefit both from selling them energy and connecting them to the grid.
With the new unit, the company wants to offer all the services needed to set up the centres, Galan said.
"Demand for data centres is booming, and that is going to accelerate with artificial intelligence," he said.
The group plans to leverage its existing relationships with tech giants like Meta, Apple, Microsoft, Google or Amazon to expand in this sector, he said.
Iberdrola already has long-term contracts to provide 8 terawatt hours of energy a year for data centres in Spain, Britain, the U.S. and Germany.
"I think it's good for us in both senses: in the sense of having new demand sources, and having the opportunity of expanding our grid for those which require to be connected."
The new unit was set up in Spain but may expand to other countries offering opportunities in the sector, like the U.S. and Britain, he said.
Amazon and Microsoft have recently pledged to invest billions of euros in Spain to build data centres.
Reporting by Pietro Lombardi; Editing by Inti Landauro and Jan Harvey
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