How Blackstone Plans US$5bn Spain Data Centre Expansion

Blackstone is set to expand its data centre development in Aragon, Spain, with an additional investment of US$5bn, reinforcing the region’s ambition to become a major European hub for AI and cloud computing.

The new phase builds on Blackstone’s previously announced €7.5bn (US$8.73bn) commitment over nine years, disclosed in 2024 and would bring the total planned investment close to €12bn (US$13.97bn). 

According to documents filed with the regional government, the expansion will be dependent on demand from customers and the second phase would be delivered over a further seven years.

A major investment in Aragon

The project reflects the growing interest of international investors in Aragon, a region now competing to attract hyperscale operators and large-scale digital infrastructure. 

Blackstone’s plans place it alongside major technology companies such as Amazon and Microsoft, both of which have announced initiatives in the area.

Currently, Aragon has around 20 data centre projects under evaluation, supported by its strategic location, energy availability and access to digital connectivity.

The first phase of Blackstone’s programme is scheduled to begin in the second quarter of 2026. It will include the development of eight data centres, supported by an on-site electricity substation, a photovoltaic power plant and new connections to the national grid.

Phased expansion

While the first stage is expected to run over nine years, the second phase would take an additional seven years to complete. 

Blackstone has indicated that the second phase will add further capacity at the same site, ensuring scalability in line with the requirements of hyperscale cloud providers and enterprise customers.

The additional investment of US$5bn underlines the size of the opportunity seen by the company in Spain’s digital infrastructure market, where demand for data centre capacity is being fuelled by cloud adoption, AI workloads and the need for greater resilience in European IT supply chains.

Sustainable design and operations

Blackstone has committed to powering the entire project with renewable energy. The company said it had signed contracts that will guarantee renewable electricity supply for all its facilities.

Cooling is also being designed with sustainability in mind. The data centres will adopt systems that do not rely on water, addressing one of the most pressing challenges for operators in Spain where water scarcity is a recurring issue.

By combining photovoltaic generation with advanced cooling solutions, Blackstone aims to deliver large-scale data centre capacity with reduced environmental impact.

Part of a global strategy 

Blackstone’s investment in Spain is one of several strategic decisions where the firm is backing data centres worldwide.

For instance, in July, Blackstone committed US$25bn in Pennsylvania, US. 

“We’re thrilled to be investing behind two of our highest conviction themes – digital infrastructure and energy – in a part of the country that is ideally situated to support and expand America’s leading position in the AI revolution,” said Jon Gray, Blackstone’s President and COO.

“We look forward to working with our partners in government, local communities and with the people of Pennsylvania to meaningfully invest in the growth of the commonwealth’s digital and energy infrastructure.”

Towards the end of 2024, Blackstone acquired Australian data centre company AirTrunk in an AU$24bn deal.

“This is Blackstone at its best – leveraging our global platform to capitalise on our highest conviction theme,” Jon commented at the time. “AirTrunk is another vital step as Blackstone seeks to be the leading digital infrastructure investor in the world across the ecosystem, including data centres, power and related services.”

Regional and industry impact

The scale of Blackstone’s plans represents one of the largest data centre investments in Spain to date. 

Aragon’s regional government has actively promoted the area as a hub for cloud and digital infrastructure, highlighting the combination of available land, renewable energy resources and connectivity through Spain’s expanding fibre and subsea cable networks.

The arrival of global operators has already started to reshape the market. Microsoft and Amazon have both committed to cloud regions in Spain, with Aragon now playing a central role in Europe’s digital transformation strategies. 

Blackstone’s entry adds significant momentum, with the potential to accelerate the region’s position as a destination for hyperscale and enterprise workloads.

For Aragon, it further solidifies the region’s standing as one of Europe’s fastest-growing digital infrastructure hubs.