The Government Tightens Conditions for New Data Centers Amid Project Surge

The new data centers must cover at least 80% of their electricity consumption each hour with additional renewable generation, meet higher energy efficiency requirements, and demonstrate that they operate under conditions of security and digital sovereignty within the European Union. The government is preparing specific regulations to manage the expansion of a sector that has become one of the primary focal points of investment associated with the development of artificial intelligence.

The forthcoming regulation also aims to prevent connection requests from occupying network capacity for years without the projects being built. The executive branch wants to prioritize initiatives with greater financial solidity, technical viability, and execution guarantees, at a time when the anticipated demand for data centers exceeds initial forecasts and competes with other industrial and energy needs.

Regulation for an Expanding Sector

The government will submit a draft royal decree for public consultation, via urgent processing, on the requirements for energy and environmental sustainability, resilience, and digital sovereignty applicable to data centers. The standard has been developed by the ministries for Ecological Transition, Economy, and Digital Transformation, and may still undergo modifications during the consultation process.

This initiative responds to the strong growth of projects linked to artificial intelligence, cloud computing, and data storage. Sector estimates indicate that around €70 billion could be mobilized for investments in Spain by the end of the decade, although much of this figure corresponds to announced projects rather than those already constructed.

This difference between announcements, connection requests, and projects actually executed explains the government’s concerns. The proliferation of initiatives could create a bubble of expectations if electrical capacity, permits, financing, and construction timelines do not allow for the simultaneous development of all planned facilities.

80% to Be Renewable and Additional

One of the main novelties affects electricity supply. Data centers with a power output exceeding one megawatt will need to demonstrate that at least 80% of the electricity they consume comes from renewable sources during each hour of operation.

It will not be sufficient to contract existing renewable electricity or present certificates of origin guarantees. The project incorporates an additionality criterion: each new megawatt of demand associated with the data center must be backed by a megawatt of newly installed renewable generation within the 18 months prior to the facility’s operation.

This obligation can be fulfilled through self-generation facilities or through long-term power purchase agreements (PPAs). However, these contracts must demonstrate that new renewable capacity linked to the data center’s consumption exists and that this generation can be matched with demand.

The 80% requirement will remain in effect while renewable energies do not exceed 90% of the national electricity mix. The proposal aims to prevent the arrival of large consumers from forcing the system to rely on fossil generation or displacing renewable electricity that was already intended for other users.

More Energy and Water Efficiency

The royal decree will also raise standards for energy efficiency and water consumption. Data centers of more than one megawatt must meet the most stringent levels and will be subject to a classification system similar to the energy labeling used for other equipment and facilities.

The goal is to ensure that the expansion of computing capacity does not result in a disproportionate increase in electricity and water consumption. This issue is particularly relevant for centers dedicated to artificial intelligence, whose workloads require high power density and more intensive cooling systems.

The regulation will also establish resilience criteria to ensure that facilities can maintain services in the event of supply interruptions, technical failures, or security incidents.

The Electrical Grid: A Major Bottleneck

Access to the grid has become one of the main limits to the development of data centers in Spain. The government notes that there are currently around six gigawatts of capacity in the transmission network and another six gigawatts in the distribution network earmarked for this type of facility.

These figures should be interpreted with caution. The capacities of the transmission and distribution networks do not automatically amount to 12 gigawatts available for simultaneous consumption, as both magnitudes belong to different levels of the electricity system. However, they do reflect the volume of requests and reservations associated with a rapidly expanding sector.

The government’s Artificial Intelligence Strategy estimated that data centers would require between 3.5 and 4 gigawatts of electricity demand by 2030. The amount of capacity requested or reserved far exceeds that estimate, although not all requests correspond to mature projects, nor will all ultimately convert into real consumption.

The executive has introduced mechanisms to prevent promoters from reserving capacity for years without progressing with the construction of their facilities. Applicants must specify the activity for which they need the connection and bear increasing costs while maintaining unused capacity. The aim is to free up space for projects that can demonstrate a genuine intention to invest and the technical and financial capability to execute.

Digital Sovereignty and Data Control

The new requirements will not be exclusively energy-related. The draft royal decree also incorporates criteria related to digital sovereignty, an increasingly relevant issue as data centers support business services, public administrations, and artificial intelligence systems.

The facilities must be operated by entities established in the European Union and retain relevant information within EU territory. The regulation also aims to limit access by authorities from third countries when such access is not covered by European legislation.

These requirements will be especially relevant for centers storing information from public administrations or data related to critical infrastructure and national security. The regulation seeks to prevent a facility physically located in Spain from being subjected, due to the corporate structure of its operator, to obligations that allow external governments to access protected information.

Promoters must initially demonstrate compliance with these conditions through responsible declarations. Subsequent verifications will take place, and non-compliance may lead to penalties, sanctions, and even, in the most severe cases, the loss of access to the electrical grid.

Aragón Prepares Its Objections

The forthcoming regulation holds particular significance for Aragón, which has attracted large projects related to data centers and other digital infrastructures in recent years. The region offers available land, substantial renewable capacity, and a strategic position for telecommunications connections, but also faces limitations from the electrical grid and the need for infrastructure expansion.

The Government of Aragón has announced that it will submit any necessary objections. The Minister of Economy, Competitiveness, and Employment, Eva Valle, has criticized the central executive for not yet sending the draft to the autonomous communities or including them in the preparation of the regulation. The position of the Aragonese government is that part of the current problem stems from insufficient planning of electrical infrastructures to address these challenges.

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