Alibaba Initiated Talks for Spanish Data Center Power
The company is seeking renewable energy to support an aggressive global expansion of its AI-focused cloud infrastructure.
Updated on Oct. 8, 2026 in Data Centers
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Alibaba Group has entered into preliminary discussions with energy provider Solaria to secure power for a potential new data center in Spain. This move is part of the company's broader effort to expand its cloud footprint for artificial intelligence services.
Why it matters
Alibaba is rapidly scaling its infrastructure to meet the surging demand for AI computing resources globally. This strategy marks a significant effort to solidify its position in the competitive international cloud services market.
Alibaba is targeting a massive scale of 20 gigawatts of global data-center capacity by 2032. For comparison, Spain’s total installed data-center capacity was 3.9 gigawatts in 2025 and is projected to reach that same 3.9 gigawatts by 2030.
The players
Alibaba Group
A multinational technology conglomerate that provides cloud computing, AI-driven infrastructure, and e-commerce platforms.
Solaria
A renewable-energy company engaged in negotiations to supply power for large-scale infrastructure projects.
The details
Alibaba is engaging in parallel negotiations with multiple renewable-energy suppliers to guarantee the high-volume electricity required for its AI-focused cloud facilities. These data centers function by clustering thousands of specialized processors to handle massive training and inference workloads. The company is simultaneously scaling its footprint in Germany and France, with additional cloud regions planned for rollout in Turkiye, Finland, and the Netherlands.
Timeline
2025: Spain recorded 3.9 gigawatts of total installed data-center capacity.
October 2026: Alibaba held preliminary talks regarding a potential Spanish data center.
Next 12 months: Alibaba plans to establish new cloud regions in Turkiye, Finland, and the Netherlands.
2030: Spain is projected to have 3.9 gigawatts of installed data-center capacity.
2032: Alibaba aims to reach 20 gigawatts of total global capacity.
The Tech Race
Alibaba's push for 20 gigawatts of capacity positions the company alongside global hyperscalers currently racing to secure energy for AI hardware. This development follows a pattern of infrastructure investment set by the European Union's 2030 Digital Decade target.
The expansion will eventually increase the regional availability of Alibaba's AI and cloud services for enterprise users across Europe. Specific pricing and official launch dates for the new cloud regions remain unannounced.
The takeaway
Alibaba's aggressive capacity targets highlight the ongoing scramble to secure long-term power agreements for AI-heavy workloads. Industry observers should watch for finalized site selections in Spain and the confirmed opening dates for the upcoming European cloud regions.
Further reading
For more context on the global infrastructure landscape, visit the Data Centers section.
Source note: This article includes information reported by China Daily.
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