Alibaba in early talks on Spain data center power supply

Alibaba Group is in preliminary talks with Spanish renewable-energy company Solaria over supplying electricity to a potential data center in Spain, Bloomberg reported.

The discussions are at an early stage and no final agreement has been reached. Alibaba has also approached other potential power suppliers, the report said.

The talks come as Alibaba sharply expands the infrastructure underpinning its artificial intelligence business.

The company said last month that it plans to establish its first cloud regions in Turkiye, Finland and the Netherlands over the next 12 months, while expanding its data-center footprint in Germany and France.

Alibaba Group CEO Eddie Wu has said the company aims to increase the global data-center capacity operated by Alibaba Cloud to more than 20 gigawatts by 2032 to meet rapidly growing demand for AI computing.

Spain has emerged as one of Europe's fastest-growing data-center markets, helped by abundant renewable energy. Rystad Energy expects the country's installed data-center capacity to rise to about 3.9 GW by 2030, roughly four times its 2025 level.