Spain’s Solaria to invest $5.7bn in Uruguay data centres

Spanish renewable energy company Solaria Energía y Medio Ambiente SA will invest $5.7bn in Uruguayan data centres and the solar parks to power them, a project President Yamandú Orsi hailed as the largest investment in the country’s history.

Orsi signed the agreement with Solaria Chief Executive Officer Arturo Díaz in front of reporters in Montevideo on October 14. Of the total, $5.5bn will go to data centre infrastructure and $200mnto a solar plant that will supply the complex with electricity.

The first phase will deliver 200 megawatts of data centre capacity and 300 megawatts of solar generation, with completion expected between 2029 and 2030. The project’s total data centre capacity is estimated at 500 megawatts once fully built.

The facilities will be spread across three departments. Solar generation is planned for Florida in south-central Uruguay, while the data centres will be built in Canelones, near Montevideo, and San José, west of the capital, according to Industry, Energy and Mining Minister Fernanda Cardona. The project will operate under Uruguay’s free-zone regime, which grants tax incentives to qualifying companies.

Construction will create more than 3,000 jobs. Orsi said the complex will support about 2,500 permanent positions once it is fully operational.

“This investment perfectly aligns with the course this government has been charting,” Orsi said, citing his administration’s push into innovation, the digital economy and more efficient power generation.

The deal reflects surging global demand for computing capacity driven by artificial intelligence, and Uruguay is marketing its grid as a draw for energy-hungry projects. Renewable sources account for 98% of the country’s electricity generation, according to the announcement.

Orsi said reliable and sustainable power has become central to corporate investment decisions, giving Uruguay a competitive edge. He also pointed to the country’s political and economic stability as a factor behind Solaria’s decision.

Madrid-based Solaria has operated in Uruguay for almost a decade. It runs two photovoltaic plants there that sell electricity to state-owned utility UTE. The new project extends the company beyond power generation into the infrastructure underpinning the digital economy.

The investment arrives as Uruguay’s government seeks to revive growth. The economy expanded 1.8% in 2025, and authorities have cut their 2026 forecast to about 1.6% after activity slowed early in the year.

Large data centres have drawn scrutiny worldwide for their heavy use of water and electricity. Authorities said environmental monitoring would be rigorous throughout construction and commissioning.