Slide 1: Data Centers: Key driver of demand growth. What's next?
Data Centers: Key driver of demand growth. What’s next?
Slide 2: Agenda
Agenda 1. Key driver of demand growth 2 2. Partnership model strategy 10 3. Iberdrola “South Madrid” data center project 19 2
Slide 3: Iberdrola Technology Vision 2030 (Iberdrola's CMD - March 2024)
Iberdrola Technology Vision 2030 (Iberdrola’s CMD - March 2024) Advancements in technology and market adoption are fueling a rise in electricity demand Final energy Key drivers Additional Demand EU EXISTING DEMAND: FUEL SWITCH 2026 2030 Other FOSSIL Charging FUELS Cost & Range Available Models Infra
Slide 4: Data Center Market: Key Figures
Data Center Market: Key Figures Economy digitalization is growing exponentially and, consequently the number and size of Data Centers are growing too. Today worldwide data center electricity demand already matches the whole demand of economies like Spain or California. Energy 2023 IT Power Snapshot:
Slide 5: Data Center Market: Spain, a strategic geography to deploy Data Centers
Data Center Market: Spain, a strategic geography to deploy Data Centers Grid Infrastructure – RES & competitive energy Business Environment & …additionally, Spain stands out for… Connectivity & Reliance prices Workforce ‒ Principal host of American ‒ Low electricity price in subsea cables Virginia c
Slide 6: Data Center Market: Spain, a strategic geography to deploy Data Centers
Data Center Market: Spain, a strategic geography to deploy Data Centers Spain stands out from all other European peers Available Land International Fiber Grid availability Cost RES 24x7 [inhabitants/km2] Connectivity and complexity competitiveness (**) Spain 95 Continental Europe (i.e. - Germany) 23
Slide 7: Data Center Market: Spain Outlook
Data Center Market: Spain Outlook FLAP* markets are expected to grow 20% YoY, whilst in Spain the growth is expected to be over a 40% YoY Spain outlook MW IT Conservative MW IT Optimistic TWh Conservative TWh Optimistic 26,3 [~10% of current 3000 electricity demand**] 26 ‒ Conservative - Cloud to EU
Slide 8: Data centers, Socio-economic impact in Spain by 2030
Data centers, Socio-economic impact in Spain by 2030 ✓ Investment until 2030 Impact until 2030 ECONOMIC IMPACT • >10.000M€ • 40.000M€ + important fiscal impact in income tax • 11% of actual GDP ✓ Employment generation * 12,000 10,000 • 1 -2,5 direct jobs / MW IT 10,000 • 5 – 12,5 indirect jobs/ MW I
Slide 9: Iberdrola's activity in the Data Center market so far
Iberdrola’s activity in the Data Center market so far… Key energy supplier with ability to provide 24x7 Associated product offering beyond energy Renewables ‒ Ability to firm PV + Wind with hydro and storage ‒ Co-located solar PV ‒ Already contracted: +7 TWh global Renewable PPA + ‒ Energy efficienc
Slide 10: Agenda
Agenda 1. Key driver of demand growth 2 2. Partnership model strategy 10 3. Iberdrola “South Madrid” data center project 19 10
Slide 11: Iberdrola continues its partnership model to enter in the DC industry
Iberdrola continues its partnership model to enter in the DC industry Iberdrola carried out successfully partnerships with tier 1 global partners which provided additional opportunities… ✓ ✓ Financial investors Industrial Investors Main investment and infrastructure funds in the world. With a strong
Slide 12: From global renewable PPA's provider to an integrated player / first mover
From global renewable PPA’s provider to an integrated player / first mover Iberdrola historical presence in the data center industry was based in the energy supply through PPAs, however, Iberdrola through its JV aims to become into a real data center integrated player Global PPAs signed across the w
Slide 13: Iberdrola footprint in Spain
Iberdrola footprint in Spain Leading the transition in Spain for more than 20 years, having invested ~35bn EUR in this period Energy Production & Customers • Total Installed capacity in Spain 31 GW (top integrated utility) • 1st Renewable player with c.22 GW of installed capacity • Net production of
Slide 14: Unique renewable portfolio
Unique renewable portfolio Iberdrola is the unique player that can provide 24/7 renewable PPAs from wind, solar PV and hydro assets in Iberia, including efficient pumped storage (gigabatteries) ✓ Leader in Energy Storage #1 Iberian renewable player Technology for power market to increase supply and
Slide 15: Partnership process and structure proposal
Partnership process and structure proposal Outstanding market interest in the partnership process Creating an in-house joint management team to convert powered lands into operating data centers 24/7 renewable energy consumers. Launched a dedicated company - CPD4Green Iberdrola value added Partner va
Slide 16: Process timeline
Process timeline Identification of the opportunity with a quick reaction to create an in-house team and develop internal capabilities 2022/2023 H1 2024 H2 2024 H1 2025 PPAs agreements with hyperscalers Historical presence in the Data Center business through PPAs signed with hyperscalers Identificati
Slide 17: Iberdrola is aiming to secure ~400MW in the next few months
Iberdrola is aiming to secure ~400MW(1) in the next few months with an objective of having 200 MW (1) in operation by 2030 as conservative case Iberdrola/CPD4Green has a diverse range of potential data centers projects across Spain Potential Data Center projects Iberdrola portfolio Iberdrola pipelin
Slide 18: Iberdrola's sources of income
Iberdrola’s sources of income Iberdrola aims to reach a ~20% of market share in Spain by 2030 as a result of having at least 200 MW in operation through the future JV in our conservative case Iberdrola view in the Spanish data center market Iberdrola benefits ~3 GW 1. JV main highlights Optimistic c
Slide 19: Agenda
Agenda 1. Key driver of demand growth 2 2. Partnership model strategy 10 3. Iberdrola “South Madrid” data center project 19 19
Slide 20: Iberdrola "South Madrid" data center project (~200 MW) at a glance
Iberdrola “South Madrid” data center project (~200 MW) at a glance Iberdrola has already secured ~200 MW of power connection in South of Madrid with more than 16ha of land plots suitable for the development and construction of data center projects Project key features Site location ~200 MW power Ind
Slide 21: Conclusion
Conclusion 1 Data centers are and will be a certain key driver of demand growth at a global scale adding 80 TWh of demand in EU by 2030 (10 TWh in Spain) 2 Spain has the opportunity to become a major hub in Southern Europe due to strategic location, competitive energy prices, leadership in renewable
Slide 22: Annex
An n ex @ Iberdrola 22
Slide 23: Annex 1: What is a Data Center?
Annex 1: What is a Data Center ? A data center is a facility which is specifically designed and equipped to host under adequate security conditions: data servers, communication systems and other IT critical infrastructure. They are prepared to operate without service interruptions. Main critical “ar
Slide 24: Annex 2: Virginia, a thriving economy and a powerful workforce
Annex 2: Virginia, a thriving economy and a powerful workforce • Data Centre industry has proven to bring higher GDP per capita and a lower rate of unemployment. • Northern Virginia captivated the best quality workforce, due to their cutting-edge technological industry. Data Centers require high pro