Spain proposes strict new regulations for data center development

The Spanish government is preparing a royal decree to implement stricter regulations for data center development, focusing on energy efficiency, water consumption, and digital security. The proposed rules aim to ensure that at least 80% of the electricity consumed by new facilities comes from renewable sources, specifically from new plants installed within the previous 18 months.

This regulatory push has met significant opposition from various sectors. The electricity association Aelec and technology groups warn that these requirements could create barriers to demand, discourage investment, and drive major tech companies to relocate projects to other countries. The People's Party (PP) has also mobilized regional governments, particularly in Aragon and Madrid, arguing that the decree could impact billions of euros in planned cloud infrastructure investments.

In regions like Aragon, political groups such as Izquierda Unida have expressed concerns regarding the environmental impact and the potential for the region to become a “sacrifice territory” due to high electricity and water demands. Meanwhile, major players like Microsoft and Amazon have significant interests in the country, with projects totaling billions of euros that may be affected by the new legal framework.