The network in Spain will be modeled after Terremark's technology platform developed for the Tier-1 NAP of the Americas in Miami.<p.The four Spanish firms will initially invest $10 million to capitalize the project. Five million dollars will be used by the companies to buy Terremark's common stock at $1 per share. The remaining $5 million, including Terremark's contribution of services and expertise, will used for the preliminary development of the Madrid NAP.

The European partners in the project are the Comunidad's Instituto Madrileno de Desarrollo (IMADE), the Camara de Comercio e Industria de Madrid, Red Electrica de Espana S.A. and Telvent Desarrollos SA, a subsidiary of Abengoa S.A.

"We are honored that the Comunidad, the Camara and the other Spanish partners share our business vision and carrier-neutral philosophy and have agreed to work exclusively with Terrmeark to convert Madrid into the de facto Internet capital for Spain, and potentially (for) Southern Europe and North Africa," Terremark chairman/CEO Manuel D. "Manny" Medina says in a prepared statement.