I find it interesting that this empire went through some serious lengths to conquer everything except essentially all of North Africa.
I can see this as some confederation of multiple empires (Spain, Portugal, the Netherlands, and the Two Sicilies) based out of Madrid. With that much sea power, I can see how they'd be able to get an early start on the Americas, as well as some sparse colonies in Asia. Why the Philippines is beyond me. I definitely see this confederation falling apart rather quick and being broken into several colonial empires, as well. As just a Spanish empire, outside of some very lucky inheritances, I don't see how the Spanish could ever accomplish this. They had enough trouble with Portugal and Morocco IOTL, but here they've conquered Portugal, much of Italy, and somehow, the Low Countries without getting crushed by a Franco-British led coalition.