The joint venture directly addresses critical structural needs within the Iberian power market to balance the grid's heavy reliance on solar power, capturing excess daytime generation to eliminate outages, extreme market price spikes, and rising consumer bills.

The Spanish government is heavily prioritising utility-scale energy storage to stabilise a national grid that has become increasingly dependent on intermittent solar generation, comprising circa 80 percent of generation capacity during peak afternoon hours. This heavy solar reliance without adequate storage has historically triggered severe grid power pricing spikes and localised outages.

“The deployment of Battery Energy Storage Systems (BESS) is a critical structural necessity in Spain” said Charlie Faulkner, CEO, EdgeMode. “As Europe’s leading location for utility-scale solar expansion, Spain's energy landscape faces unique pressures that make large-scale storage vital for developers, grid operators, and consumers alike. To accelerate grid resilience, the Spanish administration has deployed substantial financial incentives, offering aggressive government grants and subsidies for certified BESS developments. This joint venture is uniquely positioned to leverage these subsidy frameworks to materially lower build costs and expand investor returns on capital.”

The acquisition instantly incorporates 52 MW of grid-connected BESS projects into EdgeMode’s near-term development pipeline, with all initial sites on track to achieve Ready-to-Build (RTB) status by the end of 2026. Complementing this near-term capacity is a massive 1.9 GW pipeline of strategically secured land plots. These locations were specifically chosen for their immediate proximity to local electrical substations, securing critical priority access (prelación) to grid connections and optimising the platform for future capacity auctions under Spanish energy regulations.

Once fully developed, the total consolidated portfolio is estimated to yield approximately 2,900 megawatt-hours (MWh) of storage capacity, with the first projects projected to be operational within 18 months.

Upon full build-out, the consolidated operations are estimated to generate an 80 percent annual recurring EBITDA margin, driving significant multi-million dollar EBITDA additions directly to EdgeMode's bottom line. To maximise shareholder value and avoid equity dilution, EdgeMode is introducing a strategic capital recycling model. The company intends to reinvest capital generated from selective monetisation and sales within its existing AI Data Centre (AI DC) portfolio to provide the equity and development funding required for the BESS platform. This shifting of capital transitions near-term transactional asset gains into a highly stable, multi-million-dollar long-term recurring income stream for EdgeMode.

From a capital allocation standpoint, utility-scale BESS infrastructure represents an extraordinarily high-yielding asset class. The estimated return on capital for the joint venture’s BESS projects is in the region of 6 years. In comparison, standard payback timelines for a typical AI DC project hover in the region of 12 years, making this energy storage expansion an intensely profitable optimisation of EdgeMode's broader infrastructure footprint.

“This majority acquisition is a structural milestone for EdgeMode” added Mr Faulkner. “By merging 52 MW of immediate, near-term RTB projects with an elite 1.9 GW strategic land pipeline, we are establishing an incredibly valuable foothold in Europe’s most vital energy storage market. This BESS platform establishes a powerful, highly profitable recurring revenue stream. We are simultaneously generating long-term predictability for our investors and providing the critical grid-balancing infrastructure required to support Spain’s digital and renewable transformation.”

For additional information:

EdgeMode

Ibersun Generación, S.L.