Friday's trading session saw a notable movement in Solaria's shares. The Spanish energy company's stock price surged after Bloomberg reported that Alibaba Group was in preliminary talks to supply renewable energy to a potential data center in Puertollano, Castilla-La Mancha. The market reacted swiftly, and the company's shares climbed to the top of the Ibex 35.
The potential agreement between the Chinese e-commerce giant and the Spanish renewable energy company comes at a time of expanding digital infrastructure. Alibaba is looking to expand its data centers and artificial intelligence capabilities in Europe and the Middle East , with a global target exceeding 20 gigawatts by 2032. The deal related to Puertollano, however, is still in an earlier stage.
Stock Market Reaction
According to published reports, Solaria's shares rose nearly 6,8% after 13:30 p.m. and briefly led the Ibex 35's gains shortly after midday. Later, the advance moderated to 3,69%, with a price of €16,99 per share, and at the close the gain settled at 1,07%, reaching €16,56. The company experienced a volatile day on the stock market, marked by anticipation surrounding the negotiations.
The reaction does not imply a deal has been finalized. Sources cited by Bloomberg speak of initial contacts and a project that still requires analysis. In Solaria's case, the stock market movement reflects investor interest in the booming data center sector in Spain , although the deal with Alibaba has not been officially confirmed.
What is known about the conversations
According to sources close to the discussions, Alibaba has held preliminary talks with Solaria to supply renewable energy to one of the Spanish company's plants. The potential data center would be located in Puertollano, and the energy supply would be a key aspect of the project. These same sources emphasize that this is still in the early stages of the negotiations.
Alibaba's interest in the area is not a novel one. The Asian company is studying its expansion into Europe and the Middle East, and the Puertollano project is being compared to other data centers the group has already announced on the continent. In this case, the discussions are reportedly at an earlier stage , and details regarding size or timeline are unknown.
Alibaba's expansion plan
Alibaba announced in September a plan to expand its artificial intelligence infrastructure and data centers in Europe and the Middle East. The Chinese firm has set a goal of exceeding 20 gigawatts of global capacity by 2032 , a figure that gives an idea of ​​the scale of its technological investment. A potential collaboration with Solaria would fit into this growth strategy.
For Solaria, the data center business has become a key focus. The company works on this type of infrastructure, and its associated division has gained operational importance. In Puertollano, the company is already planning its own facilities, which would explain Alibaba's interest in finding an energy partner in the area. The municipality in Ciudad Real province thus emerges as a potential location for technology investments.
Puertollano, in the spotlight
Puertollano has been the site of institutional efforts to attract large-scale investments. Delegations led by representatives from the Ciudad Real Provincial Council and the City Council traveled to China to present proposals, and subsequently, Chinese delegations interested in the region's logistics and energy potential have visited. The objective was to position the area as a strategic location for technological infrastructure.
Before approaching Alibaba, Solaria evaluated another AI data center project with the Japanese technology company Datasection, up to 200 megawatts, which ultimately fell through. Now, industry sources indicate that Alibaba is also exploring other potential energy providers in the area. Competition to attract these types of facilities is fierce, and no decisions have been finalized.
Energy and regulatory context
The potential contract with Alibaba would align with future Spanish regulations, which stipulate that at least 80% of the energy consumed by data centers must come from new renewable generation. This requirement, detailed in the royal decree mandating renewables and digital sovereignty , favors agreements between digital operators and electricity companies with experience in photovoltaics, such as Solaria.
Meanwhile, Solaria is moving forward with its own data center project in Puertollano. The initial phase will include 40 megawatts of power and an investment exceeding €150 million , with the capacity to expand by another 100 megawatts in a second phase. These figures reinforce the company's role in the digital infrastructure business.
Recent figures for Solaria
The company closed the first half of 2026 with a net profit of €124,9 million , a 52% year-on-year increase, while its revenue grew by 111% to €167,2 million. The data center infrastructure division consolidated its position as the main operating driver, after more than quadrupling its sales in the first half of the year to €99,6 million.
The contracted capacity of that division reached 438 megawatts , compared to the 225 megawatts reported at the end of 2025. These figures help explain why a potential alliance with Alibaba has industrial potential, not just stock market implications. Even so, any move depends on the talks progressing and an agreement being finalized.
The convergence of interests between Alibaba and Solaria raises several key points: a potential data center in Puertollano, the need for renewable energy, the Chinese giant's European plan, and Solaria's commitment to digital infrastructure. These talks, still in their preliminary stages, have significantly impacted the energy company's share price and brought attention to a town seeking to attract major technology investments. While everything remains to be confirmed , the market has already reacted as if the project were likely to materialize.
