Table of Contents
Highlights.
- nLighten and Shell Spain have entered a landmark renewable PPA to power the MAD1 data center in Madrid entirely with solar and wind energy.
- This set a new benchmark in data center sustainability by prioritizing actual clean energy delivery over traditional certificates.
- The deal supports Spain’s national renewable goals and reflects broader trends where tech giants increasingly commit to green energy.
- As data center energy demand grows, this partnership showcases a replicable path for a sustainable and resilient digital ecosystem.
nLighten, a European edge data center operator, has signed a landmark Power Purchase Agreement (PPA) with Shell Spain to power its new Madrid facility with green energy. Made effective on April 1, 2025, Shell will supply solar and wind power to nLighten’s MAD1 data center in the north of Madrid. This partnership is designed to integrate actual renewable generation into the data center’s energy mix in real time, going beyond the usual practice of merely buying renewable certificates. By focusing on direct green energy delivery and transparency, the deal sets a precedent for greener data infrastructure.
nLighten and Shell Spain: A Brief Overview.
nLighten
nLighten is a rapidly expanding European data center company, founded in 2021 and backed by I Squared Capital. It operates a distributed network of edge data centres across several European countries, including the UK, France, the Netherlands, Spain, Switzerland, and Belgium. The company specializes in regional data facilities aimed at serving local digital demand with low latency and high efficiency.
nLighten’s infrastructure is designed with modern computing needs in mind, including AI-readiness and scalable power and cooling. Its Madrid facility, MAD1, exemplifies this philosophy. Chad McCarthy, CTO of nLighten, emphasizes that the partnership with Shell will build a “resilient and future-proof green energy model for digital infrastructure,” aligning with the company’s broader sustainability and technological goals.
Shell Spain
Shell Spain, the regional arm of global energy giant Shell, has made major strides towards green energy leadership. Traditionally associated with oil and gas, Shell has in recent years transformed its Spanish operations through aggressive investments in solar and wind energy. In 2022, it entered Spain’s renewable market with the acquisition of 2 GW of solar projects from Green Tie Capital, followed by another 1.1 GW from Isemaren in 2023. It also launched a 54 MW solar facility in Murcia in early 2025.
These investments have positioned Shell Spain as a critical player in the country’s clean energy transition. By supplying green energy to nLighten, Shell is deploying its renewable portfolio to serve the high-growth digital infrastructure sector. According to Óscar Fernández, Chair of Shell Spain, this partnership illustrates how digital and energy companies can collaboratively scale sustainable solutions.
Renewable PPA Partnership for MAD1 Data Center
The core of this collaboration is a long-term renewable PPA between Shell Spain and nLighten for the MAD1 data center. Unlike conventional contracts that rely heavily on Guarantees of Origin, this agreement emphasizes transparency and real-time integration of renewable sources. The electricity powering MAD1 will come directly from Shell’s solar and wind farms in Spain, allowing nLighten to monitor and verify the actual origin of its energy in real time.
This supply model ensures operational transparency and accountability, allowing nLighten to confirm that it is being powered by clean energy at any given time. The arrangement gives the company a good idea of when and how solar and wind resources are supplying the data center, rather than depending on indirect offsets.
The structure of the PPA prioritizes solar generation, which aligns well with Spain’s sunny climate. However, it also includes wind energy, offering a balanced, flexible mix that can adapt to seasonal and daily changes in renewable output. If fluctuations occur, Shell is responsible for managing the balance to ensure uninterrupted service at the data center. This makes the agreement both green and resilient.
Another important element of the agreement is its contribution to nLighten’s Carbon-Free Energy (CFE) score. By sourcing electricity from actual renewables, the data center boosts its credibility and sustainability ratings, which can be a major differentiator in today’s competitive market.
Madrid’s MAD1 Data Center
MAD1, located in northern Madrid, is a cutting-edge data centre built to serve local and regional demand. With a total area of 3,300 square meters and a 2 MW IT load capacity, it provides significant computing power while remaining relatively compact. The facility is engineered for AI workloads, which require dense power and advanced cooling, and boasts a Power Usage Effectiveness (PUE) of 1.29, which is significantly better than the industry average.
This low PUE indicates that MAD1 is highly efficient, with most of its power going directly to IT equipment rather than cooling and other overhead. Though detailed redundancy levels are not publicly disclosed, the center likely includes standard failover systems like UPS and diesel generators to ensure continuous operation.
With its AI-ready architecture, efficient design, and now its green energy operation, MAD1 serves as a model for sustainable edge computing.
Driving Sustainability and Innovation
The partnership between nLighten and Shell Spain signals a new approach to energy procurement in the data center industry. By emphasizing real-time energy tracking and direct supply from renewable sources, it sets a benchmark for transparency and environmental responsibility. Chad McCarthy of nLighten calls this a “game-changer” that shows how sustainability and business performance can align.
From Shell’s perspective, this deal is an opportunity to demonstrate how clean energy assets can directly support digital transformation. Óscar Fernández notes that tailored green energy solutions are essential for scaling sustainable infrastructure and that this collaboration can serve as a template for similar partnerships.
The benefits of this approach include verifiable emission deduction, enhanced environmental scores, leadership in green innovation, and improved long-term cost management. These elements combine to create a compelling case for other data centres to adopt similar renewable-first models.
Globally, this partnership aligns with trends among other major operators. Companies like Digital Realty, Microsoft, Amazon, and Google have all entered into substantial green energy contracts to power their facilities. For example, Digital Realty has achieved 100% renewable coverage in Singapore and powers the majority of its European and North American data centres with renewables.
Spain’s Renewable Energy Trends
Spain has emerged as one of Europe’s most active markets for renewable energy, particularly solar. The country’s geographic location gives it access to more than 2,500 hours of sunshine annually, making it ideal for solar generation. Over the past five years, Spain has consistently ranked among the top five European nations in Green energy capacity growth.
According to Red Eléctrica, nearly 50% of Spain’s electricity was generated from renewable sources in 2023, with wind and solar accounting for the majority. The Spanish government’s National Integrated Energy and Climate Plan (PNIEC) targets 74% renewable electricity by 2030, and full decarbonization by 2050. This policy direction supports the kind of advanced PPAs and transparent energy sourcing seen in the Shell-nLighten deal.
In the context of digital infrastructure, Spain is rapidly becoming a connectivity hub. Madrid, Barcelona, and Valencia are seeing increased investment in hyperscale and edge data centres, and many are committing to green energy use from day one. With government incentives, investor interest, and a growing local tech ecosystem, Spain’s data center sector is well-positioned for sustainable growth.
Global Perspective on Sustainable Data Infrastructure
The need for sustainable energy solutions in the tech industry is not limited to Spain. Worldwide, data centres consume between 1% and 1.5% of all electricity, a figure that is projected to grow as digital services expand. To combat this, leading companies are investing heavily in green energy procurement, with many setting goals for carbon neutrality or net-zero emissions.
Notably, Google has committed to sourcing 24/7 carbon-free energy across all its data centres and offices by 2030. Microsoft has pledged to become carbon negative by the same year. Amazon has also announced plans to run on 100% green energy by 2025. These tech giants are helping normalize sustainable practices and pushing the supply chain, including energy providers, to innovate faster.
Governments and NGOs are also playing a key role. The European Union’s taxonomy on sustainable finance and proposed Energy Efficiency Directive revisions are pressuring companies to provide clear documentation of renewable use, energy efficiency, and environmental impacts. Real-time matching of green energy consumption, as in the Shell-nLighten, is becoming a gold standard.
A Blueprint for the Future with a Greener Infrastructure
The renewable PPA between nLighten and Shell Spain marks more than just a corporate agreement, it represents a significant step towards a new paradigm in sustainable digital infrastructure. By sourcing real-time solar and wind energy, enhancing transparency, and supporting advanced edge computing with clean power, this collaboration sets a compelling example of how technology and energy sectors can align to meet the demands of a digital, low-carbon future.
As data center energy consumption continues to rise globally, deals like this one highlight a path forward, with smarter energy sourcing, real-time renewables integration, and scalable green innovation. Whether you are an infrastructure operator, energy provider, policymaker, or sustainability advocate, the lessons from this partnership point to one clear direction: the future of data will be fueled with clean energy.
