FRV Announces €2.8 Billion AI Data Center Campus in Spain's Extremadura, Powered Primarily by Renewables
March 6, 2026
In a significant move highlighting the convergence of digital infrastructure and sustainable energy, Spanish renewables developer Fotowatio Renewable Ventures (FRV) has unveiled plans for a major artificial intelligence-focused data center campus in Mérida, Extremadura. The project underscores the growing trend of energy companies directly entering the data center market, leveraging their expertise in renewable generation to power the next wave of compute-intensive applications.
The initiative, named the Lusitanus project, will be situated within the ExpacioMérida industrial park. FRV, a subsidiary of Saudi investment firm Abdul Latif Jameel, has secured a land reservation contract covering 240,000 square meters for the development. The total planned investment amounts to €2.8 billion (approximately $3.2 billion), with €2.1 billion allocated to digital infrastructure and the remaining €700 million dedicated to constructing dedicated renewable energy generation assets.
A key feature of the campus is its commitment to sustainable power. The company states that the facility will be powered by more than 80 percent renewable self-generation, aligning with broader industry goals to reduce the carbon footprint of energy-intensive AI workloads. The development has received support from local authorities, with the President of the Regional Government of Extremadura having met with FRV executives to back the project.
FRV brings substantial energy sector experience to the venture. The firm, which was acquired by Abdul Latif Jameel in 2015, develops wind, solar, and battery storage projects and currently has close to 3 gigawatts of capacity in operation globally, with an additional 1 gigawatt under development. In Spain, its portfolio includes projects in regions such as Andalusia, Catalonia, and Cantabria, alongside Extremadura.
The Lusitanus project represents a major capital injection into the Extremadura region and positions it as a potential hub for sustainable digital infrastructure in Southern Europe. By integrating large-scale renewable energy generation directly with AI data center capacity, FRV's model could set a benchmark for future developments seeking to balance rapid technological growth with environmental responsibility. While full technical specifications and development timelines have not yet been disclosed, the scale of the investment signals strong confidence in the long-term demand for green-powered AI infrastructure.
Source: datacenterdynamics
