Spain proposes strict environmental regulations for data centers

The Spanish government is preparing a royal decree to regulate the environmental impact of data centers, focusing on sustainability, resilience, and digital sovereignty. The proposed regulations would require data centers to cover 80% of their electricity consumption with renewable energy and justify their consumption on an hour-by-hour basis.

Industry representatives and consultants have raised significant concerns regarding the economic viability of these measures. According to a report by EY, the decree could result in an additional cost of 642 million euros in electricity bills and potentially jeopardize approximately 67 billion euros in investments. The report suggests that if the demand of 3.5 to 4 gigawatts from data centers fails to materialize due to these restrictions, it could lead to underutilized infrastructure and shift system costs of up to 642 million euros to households and small consumers by 2030.

Industry associations, including Spain DC and CEOE, argue that the requirements for hourly correlation and additionality are more restrictive than any current European standards. They warn that such a framework could discourage new investments and lead to capital flight, as the high costs of overdimensioning renewable portfolios and battery storage may make the business model unsustainable.