Merlin Properties addresses CoreWeave concentration in data center business

Merlin Properties has addressed concerns regarding client concentration, stating that the US technology firm CoreWeave accounted for only 8.6% of the company’s total rental income in the first half of 2026. However, the company acknowledged that CoreWeave represents approximately 80% of its specific data center business.

This high concentration is attributed to the early development stage of its data center platform. Currently, only 160 megawatts (MW) are operational or pre-leased out of a projected 724 MW across the first three phases. Merlin aims to reduce single-client exposure to below 20% once the project is fully developed. The company noted that infrastructure in Madrid and ongoing negotiations in Lisbon involve other operators.

To mitigate risk, Merlin highlighted contractual guarantees, including the ability to interrupt electricity supply and invoke legal protections over installed technological equipment in the event of non-payment. Following these clarifications, Jefferies maintained its ‘buy’ recommendation for Merlin, setting a price target of 16 euros per share.