Spanish AI company Substrate AI has unveiled plans to construct a state-of-the-art 10MW data center outside Toledo. This ambitious project aims to strengthen Spain’s AI capabilities while maintaining compliance with European Union data governance standards.
The facility will be located at the Torrehierro industrial estate in Talavera de la Reina, spanning 25,000 square meters (approximately 269,095 square feet). It is expected to house Nvidia’s cutting-edge GPU hardware, including NVL72 racks, to power advanced AI operations.
Investment and Funding Details
Substrate AI is investing €100 million ($102.3 million) in this project, which will be partially financed by a €19.4 million grant from the Junta de Castilla-La Mancha. Additional funding will come from several international investors.
Strategic Vision for AI in Spain
According to Substrate AI’s CEO, José Iván García, the data center is a critical step toward bolstering Spain’s AI independence. He stated:
“This data center will be able to offer all the capacity needed to train and operate new AI models in Spain and therefore within the European Union. This will allow us to offer all the AI services that the great transformation of the economy needs, but taking into account data governance.”
The facility will also support the development of proprietary large language models (LLMs) tailored for specific industries, including compliance-focused AI solutions.
Boosting AI Sovereignty and Innovation
Through its Serenity Star unit, Substrate AI plans to leverage the new data center to enhance AI innovation. By hosting LLMs on-premise, the company seeks to provide secure and localized AI services for businesses and governments. This approach aligns with increasing demand for data sovereignty and governance in Europe.
Talavera de la Reina: A Growing Data Center Hub
Substrate AI’s project adds to the growing list of data centers in Talavera de la Reina. Meta, another global tech giant, is also developing a facility in the same region, further establishing the area as a strategic hub for technology and innovation.
FAQ: Substrate AI’s Data Center Plans
What is the capacity of the planned data center?
The data center will have a capacity of 10MW, designed to support advanced AI workloads and model training.
Where will the data center be located?
It will be built in the Torrehierro industrial estate, Talavera de la Reina, Spain.
How much is being invested in the project?
The total investment is €100 million, including a €19.4 million grant from the regional government.
What hardware will the data center feature?
The facility will host Nvidia GPU hardware, including NVL72 racks.
How will this project benefit AI development in Spain?
The data center will enable the development of localized AI models and services, enhance data sovereignty, and support Spain’s digital transformation initiatives.
