European Edge data center firm nLighten has signed a long-term Power Purchase Agreement (PPA) with Shell Spain to power its MAD1 Edge data center in Madrid.

The PPA will see power delivered from Shell’s solar and wind portfolio in Spain, with a priority placed on solar generation. The PPA came into effect on April 1.

The MAD1 data center is located in the north of Madrid, it covers 3,300 sqm (35,520 sq ft) and has a capacity of 2MW. The data center is AI ready and has a PUE of 1.29.

Unlike the majority of corporate PPAs, the companies claim that the PPA goes beyond traditional supply contracts by providing nLighten with transparency on what renewable assets are powering the data center at a given time, rather than simply providing guarantees of origin.

The length and capacity of the PPA were not disclosed. DCD has contacted both companies for further information.

“This agreement is a game-changer for how data centers in Spain – and beyond – can be powered by renewables,” said Chad McCarthy, chief technology officer and co-founder of nLighten.

According to the partners, the PPA will allow for flexibility to scale based on real-time supply and demand, with Shell managing supply during periods of lower generation to ensure uninterrupted operations.

“By integrating lower-carbon sources into the grid, providing flexibility options, and offering tailored energy solutions, we can support the growing demands of data centers. Strategic collaborations between digital infrastructure companies and energy suppliers allows to leverage each other’s strengths, helping scale solutions quickly and effectively to ensure a sustainable energy supply,” said Óscar Fernández, Shell Spain country chair.

Shell first entered the Spanish renewable energy sector in 2022 following the acquisition of a 2GW portfolio of ten solar projects from Green Tie Capital.

Since then, it has bolstered its renewable portfolio in the country with further acquisitions, including the purchase of 12 solar projects with a combined capacity of 1.1GW from Isemaren in May 2023. Most recently, in February, the oil and gas giant commenced operations at a 54MW solar farm in Murcia in partnership with Zelestra.

nLighten was founded in 2021 by global infrastructure investor I Squared Capital. It currently has 34 data centers across the UK, France, the Netherlands, Spain, Switzerland, and Belgium.

The company acquired seven data centers from sister company Exa Infrastructure last year