Basque Government seeks EU toll on non-European data centers

The Basque Government has requested that the European Commission implement a toll on non-European data centers to account for their high electricity consumption. This proposal aims to ensure that these facilities contribute to the investment costs required for the electrical grid infrastructure necessitated by their demand. The Basque Executive expressed concerns that rising demand could increase wholesale market prices and force additional investments in transport and distribution networks, costs that are ultimately passed on to households and local industries.

In tandem with this request, a draft royal decree from Spain’s Ministry for the Ecological Transition seeks to regulate large-scale data centers consuming 1 megawatt (MW) or more. The proposed regulation would require such facilities to cover 80% of their electricity through renewable self-consumption or long-term power purchase agreements (PPAs) linked to Spanish plants.

The draft includes strict requirements: backup plants must be less than 18 months old, and electricity must be generated in the same hour it is consumed. While intended to balance demand with renewable generation, industry experts warn that the requirement for hourly matching could increase project costs and impact viability due to the intermittent nature of solar and wind energy.