Data center investors threaten to move from Spain to Portugal

Data center investors in Spain are threatening to relocate investments to Portugal and other European nations due to proposed new energy regulations. The industry association SpainDC warns that these rules could result in a negative economic impact ranging from 53.6 billion to 60.3 billion euros, potentially reducing direct and indirect investment by 80% to 90%. Without this disruption, investment in the sector was projected to reach 67 billion euros by 2030.

The proposed regulations include a requirement for 80% renewable energy consumption on an hour-by-hour basis, rather than an annual target, and a mandate that every megawatt consumed must be offset by green energy within 18 months.

Portugal is viewed as a preferred destination for these investments due to its access to renewable electricity, competitive pricing, strong telecommunications links, and favorable regulatory conditions. While other countries like Italy, France, or Poland may also benefit from Spain's regulatory shifts, Portugal remains a primary contender. The Spanish government has expressed a willingness to discuss the details with the sector to reach an agreement.