Sierra DC has taken a decisive step to develop one of the most ambitious digital infrastructure projects announced in Spain in recent months, located in Escúzar, just a few kilometers from Granada. The company, based in Marbella with Swedish capital, has confirmed that it already holds the license to build the first phase of its SP01 campus, a data center focused on AI workloads, with a total planned investment of €1 billion. The project will be situated in CITAI Escúzar, an industrial and technology park that currently hosts over 35 active companies and around 1,800 professionals.
This news is significant for several reasons. It not only strengthens Spain’s map of data centers beyond the traditional hubs of Madrid and Barcelona, but also places Granada in a broader conversation: Europe’s race to attract infrastructure capable of training and operating AI models. Sierra DC presents SP01 not as a conventional colocation data center, but as an installation designed for high-density loads linked to artificial intelligence, with an initial phase between 10 MW and 40 MW, according to published references so far, and with projections of over 100 MW in later phases. The company’s corporate website even talks about a roadmap that exceeds that capacity in total campus infrastructure.
Escúzar aims to enter the European AI map
The choice of Escúzar is no accident. Sierra DC had already argued in previous months that Granada offered an uncommon combination of available land, access to renewable energy, favorable climate for cooling, and room for expansion. Additionally, the development of CITAI includes major industrial, logistics, and scientific projects, such as Lidl’s large logistics center, Rovi’s expansion, Amazon’s presence, and the IFMIF-DONES environment—one of Spain’s most significant ongoing scientific projects.
This context adds a dimension to the project that goes beyond mere construction of a tech building. For some time, Granada has sought to position itself as an innovation hub capable of attracting investment in energy, talent, and infrastructure. A campus like this could serve as a catalyst, attracting technology providers, operators, specialized engineering, and related services. However, this impact will depend on how the project’s execution unfolds and its ability to attract large clients. So far, Sierra DC has indicated it has funding for the first phase and has launched a bidding process to start construction within this year.
The company also highlighted the involvement of partners like PGI Engineering & Consulting and CBRE in the project’s development. While optimistic messages about execution speed have been shared, it’s important to distinguish between the license for the initial phase and the full realization of the campus. For projects of this size, actual construction, power connection, deployment schedules, and client acquisition typically occur in stages and may not always align with initial presentations.
A data center designed for high-density loads
One of the most interesting aspects of the project is its technical approach. Sierra DC envisions SP01 as infrastructure prepared for AI training and operation, which requires much higher electrical and thermal density than many traditional data centers. The company has mentioned designs exceeding 120 kW per rack, placing the project in the current conversation about infrastructures for GPU and accelerated computing, where cooling, efficiency, and energy availability have become critical factors.
On efficiency, the company reports a design PUE around 1.27, though its website also references figures near 1.29 for SP01. This difference doesn’t alter the core message but suggests some caution with preliminary metrics until the installation is operational and can be measured under real conditions. Sierra DC states the campus will be powered by 100% renewable energy and will be prepared for heat reuse—elements increasingly common in sector discussions—though practical implementation depends on local factors, industrial integration, and thermal demand in the surrounding area.
Furthermore, the company emphasizes that its development will be modular to avoid overbuilding, aligning well with current data center strategies that involve phased deployment, matching investment with demand, and reducing underutilization risks. In a Europe seeking to attract AI capacity without repeating past excesses, this approach makes sense, especially in emerging locations still proving their maturity as large-scale data center markets.
The real challenge remains energy
The key factor influencing SP01’s future won’t be just concrete or engineering, but electricity. DatacenterDynamics warned as early as late 2025 that the project was ready to launch, but concerns about actual power availability in Granada remain unresolved. Last September, they also noted that grid capacity is currently a major bottleneck for new data centers in Andalusia, although Granada starts from a somewhat better position compared to other provinces in the region.
This issue is crucial because the surge in AI is transforming the economics of data centers. Having land, connectivity, and a building is no longer enough. Reliable, scalable power on timelines compatible with major clients’ demands is essential. Sierra DC claims that the necessary capacity for the first phase is secured, but the real test will come when the project aims to scale to triple-digit megawatts. That’s when Granada’s potential to become a new hub for AI-intensive infrastructure will be truly tested, or whether growth will be limited by the same constraints affecting other European regions.
Nevertheless, the license grant marks a tangible progress. Spain has long sought to strengthen its role in the digital economy—not just as a consumer market but also as a territory capable of hosting critical infrastructure. If SP01 meets its deadlines and successfully executes its initial phase, Granada could transition from a promising location to a key player on the Iberian AI map.
Frequently Asked Questions
Where will Sierra DC’s AI data center be built?
The SP01 project will be developed in CITAI Escúzar, in the metropolitan area of Granada, an industrial and technological environment with over 35 companies and approximately 1,800 professionals.
How much will Sierra DC invest in its Granada campus?
The total announced investment for the campus is €1 billion, although implementation will occur in phases, and the license granted covers the first stage of the project.
What type of data center is SP01?
Sierra DC describes it as a campus tailored for AI workloads, with high density per rack and designed for training and operating advanced models, rather than as a conventional general-purpose data center.
What is the main challenge for the project’s growth?
The major challenge is ensuring sufficient electrical capacity as the campus scales. Power availability continues to be one of the main bottlenecks for new data centers in Andalusia and much of Europe.
via: eleconomista