Merlin and Iberdrola Drive Spain’s Largest Green Data Center

By Ion Jauregui – Analyst at ActivTrades

Merlin Properties has taken a decisive step in its strategic plan to establish itself as a key player in the data center sector in Southern Europe. The REIT has formed a partnership with Iberdrola to ensure the supply of renewable energy to the Bilbao Arasur campus, located in Ribabellosa (Álava), which is set to become Spain’s largest data center, with a total capacity of 350 MW IT.

Iberdrola will build a 125.89 MW photovoltaic park in Armiñón, the largest in the Basque Country, which will power the complex under a long-term Power Purchase Agreement (PPA). The investment will amount to €70 million and will be managed by Ekienea, a company jointly owned by Iberdrola (75%), the Basque Government (18%), KREAN (5%), and the Alava Provincial Council (2%). The facility is expected to be fully operational by 2027.

The project is part of Merlin’s Mega Plan, which involves a total investment of €2.4 billion by 2028, with operations in Madrid, Bilbao, Barcelona, and Lisbon. Arasur will serve as its flagship campus: it already has a first operational building of 22 MW IT and a second under construction of 48 MW IT, with future phases expected to increase capacity to 70 MW IT per building.

From a strategic perspective, this partnership strengthens Merlin’s sustainability and business predictability. By securing stable, green energy over the long term, the company mitigates exposure to electricity price volatility and reinforces its ESG positioning. Additionally, the data center business is expected to generate recurring revenues exceeding €400 million annually by 2029, nearly double the current rental income.

Technical Analysis

In the markets, Merlin shares are currently trading around €13.26, after reaching annual highs near €13.36. The stock maintains a bullish trend, with an RSI of 66.8% and a positive MACD, suggesting continued upward momentum, though there is some risk of a pullback if resistance levels are not broken.

The moving average crossover remains bullish, with the 50-day moving average acting as support, aligned with the Point of Control (POC) in the mid-range. Key technical levels are €12.78 as primary support and €12.31 as secondary support, while the current highs represent immediate resistance.

A strong break above this level could open the way to targets in the €14–€14.50 range, while a pullback could bring the price back toward the identified support levels.

Robust Growth Strategy

Merlin combines a robust digital infrastructure growth strategy with a favorable technical outlook, reinforcing its appeal to investors seeking exposure to sustainable and tech-driven assets within the European real estate market.



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