Spain debates new regulations for data centers and foreign investment

Spain is facing significant debate over proposed government regulations for the data center sector. A draft Royal Decree aims to establish new requirements for energy sustainability, environmental impact, resilience, and digital sovereignty. One controversial measure requires centers to back at least 80% of their consumption with new renewable energy generation on an hour-by-hour basis, rather than relying on existing grid guarantees.

Ismael Clemente, CEO of Merlin Properties, has criticized the move, arguing that such regulations could stifle the industry, which he describes as the ‘industry of the 21st century.’ Critics suggest the policy may hinder digital productivity and technological sovereignty by creating administrative hurdles for essential infrastructure.

Simultaneously, the Ministry of Economy is working to strengthen the ‘anti-takeover shield’ by making controls on foreign investments permanent, even for EU-based entities. This reform aims to increase government oversight on strategic sectors, including data centers and energy installations, requiring prior authorization for significant acquisitions.