Bain Capital-backed Hscale has signed a contract valued at more than $1 billion with an unnamed hyperscale client to provide capacity at its Spanish data centers, marking one of the largest colocation commitments in Southern Europe this year. The deal underscores the accelerating demand for high-capacity infrastructure capable of supporting both cloud and AI workloads across the EMEA region.
The agreement covers cloud and AI workloads for the hyperscale client, with space expected to be available in 2027. Hscale has not disclosed which specific facility will serve the client, but the company currently has two data centers under development in Spain. The BCN1 facility in Barcelona is planned for 50MW of capacity, while MAD1, located near Madrid, will offer 192MW. The contract could also be extended to include capacity at other Hscale data centers across the EMEA region, according to the company.
Paul Berry-Selwood, chief commercial officer at Hscale, described the deal as a strong validation of the company's market positioning. "This deal is a powerful endorsement of Hscale's strategy and our ability to deliver complex, high-capacity infrastructure for the world's most demanding cloud customers," he said. "Spain combines scale, connectivity and access to renewable energy, making it a natural location for the next generation of AI and cloud services. We are proud to be moving forward with a customer that shares our focus on operational excellence, speed and responsible long-term growth."
The contract reflects a broader trend of hyperscale cloud providers securing large-scale capacity commitments in Southern Europe, where renewable energy availability and improving connectivity have made the region increasingly attractive for AI-driven data center development. Spain in particular has emerged as a key growth market, with several operators announcing major projects in Barcelona, Madrid and Zaragoza over the past two years.
Hscale was launched by Bain Capital in 2025 to serve the EMEA market. The company operates an active data center in Oslo, Norway, with two additional facilities under development in the Nordic country. It is also pursuing projects in Milan, Italy, and has data centers in development in London, Frankfurt and Zaragoza. Bain founded Hscale after acquiring an 80 percent stake in Aquila Group's data center business, AQ Compute, in 2023. Aquila Group retains a 20 percent stake in Hscale, which is led by Oliver Schiebel, formerly chief executive of German data center operator Mainova Webhouse.