Spain faces energy grid conflict over data center expansion

The rapid expansion of data centers driven by artificial intelligence has triggered a conflict over electrical grid access in Spain. As requests for connection surge, capacity is becoming scarce in certain regions, leading to competition between the data center sector and the manufacturing industry for available megawatts.

Data indicates that grid managers have granted over 6 GW of access to data centers since late 2023, with an additional 6 GW granted by distribution networks since 2020. This volume of permissions exceeds the projections set by the 2030 Artificial Intelligence Strategy. However, the industry group SpainDC argues that actual demand will be significantly lower, projecting approximately 2.5 GW by 2030 compared to the higher figures suggested by current permissions.

Manufacturing industries are calling on the government to release power currently blocked by stagnant projects and to prioritize mature investments. In response, a draft royal decree aims to distinguish ‘firm and viable’ projects to prevent capacity from being tied up by initiatives that fail to progress. Prime Minister Pedro Sánchez has emphasized the need to treat grid access as a scarce strategic asset to avoid the tensions seen in other markets.