CNMC urges Spain to relax energy requirements for data centers

The Spanish National Commission for Markets and Competition (CNMC) has urged the government to relax proposed energy requirements for data centers. The regulator warns that strict mandates could create market distortions and hinder investment in the digital sector.

A central point of contention is the requirement for data centers to cover at least 80% of their annual electricity consumption with new renewable energy sources, specifically those commissioned within 18 months of the center's operation. The CNMC argues that such rigid 'additionality' rules may be inefficient, especially during periods of renewable energy surplus or negative electricity prices.

Industry groups and regional authorities, including the Junta de Extremadura, have expressed concerns. Fedea warned that the regulation could drive investment away from Spain to other countries, while the industry group Spain DC described the current proposed conditions as ‘impossible to fulfill.’ Additionally, the CNMC has called for an assessment of how the massive influx of data center power requests might impact the electrical grid and compete with the energy needs of other strategic industrial sectors.