Solaria

Solaria will not put up the $5.7 billion for the Uruguayan campus: it will contribute around $200 million for the 350 MW solar plant, and the rest will be financed by the hyperscalers that lease the energised land. The company already booked €99.6 million in six months from its data centre land model.

Solaria is not going to put the $5.7 billion announced for its technology campus in Uruguay on the table. Not by a long shot. The Spanish company acts as developer, operator and facilitator of the infrastructure, and the bulk of the capital will come from the large international technology operators that set up in the free trade zone. It is a shift in model that is already visible in its accounts before a single shovel has moved in Latin America.

The announcement refers to an estimated total investment of **$5.7 billion**, around €5.08 billion at current exchange rates. Of that figure, **$5.5 billion** goes to the campus and the data centres themselves, and **$200 million** to the photovoltaic plants of up to **350 MW** that will supply the complex. The gap between what is announced and what Solaria risks from its own pocket is the key to the whole financial design.

## How the capital is split: who puts in what

Solaria is in charge of managing the land, processing the permits, building the basic infrastructure, the high-voltage grid connections and the efficient cooling systems. That is its job. The capital to build and equip the data centres, that $5.5 billion, will come from major technology operators such as **Amazon**, **Google** or **Microsoft**, to whom Solaria will lease the energised land and services within the campus.

For the solar side, the company has a long-term power purchase agreement, a PPA of up to **40 years**, with the Uruguayan state utility **UTE**. That contract underpins the traditional bank financing of the photovoltaic phase. The public utility will buy 100% of the energy generated by the plants, giving Solaria a predictable cash flow shielded from wholesale market volatility for four decades.

The real impact on Solaria's debt is far smaller than the project headline suggests. The direct net debt the company will take on stands between **$140 and $160 million**, according to the breakdown of the model. The solar plant will be financed as a project finance deal: banks lend 70% to 80% of the cost, backed by the contract with UTE. The remaining $40 or $60 million will come from its own cash, strengthened after a capital raise and share sale worth **€300 million**. The $5.5 billion for the data centres never touches Solaria's balance sheet: that debt is on the account of the multinationals that lease the facilities.

## The numbers the data centre land business is already generating

The infrastructure and data centre division has become Solaria's main financial engine, and that is already visible in the first-half **2026** reports. Revenue from the sale and preparation of land with secured grid connection, the so-called Powered Land model, soared **355%** to **€99.6 million** in just six months. That figure exceeds by **34%** everything the company earned from this line in the entire previous year.

Overall net profit grew **52%** to **€124.9 million**, while EBITDA rose **50%** to **€210.1 million**. Data centres are already pulling the balance sheet and offsetting the volatility of power prices on the traditional electricity grid. The market projects the firm will close the full year approaching a record net profit of more than **€220 million**, with an EBITDA target of **€331 million**.

The profitability of this business explains the enthusiasm. Selling traditional energy on the Spanish wholesale power market carries a net margin that usually ranges between **35% and 45%**, exposed to windy or rainy days sinking the price of electricity. The data centre division, according to the company's financial reports, operates with an EBITDA margin of **94%** and a net profit margin of up to **67%**. Of every €100 of revenue from digital infrastructure, €67 goes straight to profit.

## Uruguay, timelines and protection from Spanish politics

The Uruguayan project's timeline has concrete dates. The definitive project will be signed in **May 2027** and construction will start in **2029**. When the digital infrastructure reaches its planned maximum capacity of **500 MW**, the rental income and hosting and connectivity services billed to the internet giants will deliver a far higher margin than simply selling electricity. Analysts estimate that, once the first phase is operational in 2029, the digital infrastructure division will go from contributing a fraction of profit to representing more than half of the group's total operating value. The strategic plan targets group-wide EBITDA of **€521 million** by **2028**, and some calculate the data centre division will contribute more than **€150 million a year** to net profit once the first 500 MW are fully operational.

That long-term growth does not depend on what happens in Spain's Congress of Deputies. The memorandum of understanding is signed in Uruguay and with UTE, and the project's legal and fiscal stability will not change with the political colour of the Spanish government. On the business in Spain, the major financial firms have analysed the possible impact of a change of government after the elections of **29 November 2026**. **Goldman Sachs** notes that a PP (Popular Party) government would apply more market-oriented energy policies, which could relax the strict time rules of the draft royal decree for data centres, which requires covering 80% of consumption with renewables hour by hour and ties every new digital megawatt to a green plant built 18 months earlier. In renewables, any Spanish government's room for manoeuvre is limited by the decarbonisation commitments and the Recovery Plan funds dictated from Brussels.

Solaria's current net financial debt stands at **€1,329 million**. Adding $140 to $160 million pogre between 2027 and 2029 does not destabilise its ratios, especially if by then the data centre business in Spain generates an EBITDA far above today's. The company plans to hold its Capital Markets Day on **19 November**, an event where the market expects details on the timeline and structure of the Uruguayan project.

All of this is an analysis of an announced business model, not investment advice. The timelines are long, the projections are projections, and the share price can move for reasons that have nothing to do with Uruguay. Every investor should consult a professional before making decisions with their money.