The Spanish government has taken a decisive step to regulate the growth of data centers. The new regulations, which are now open for public comment after being fast-tracked through the legislative process, stipulate that these facilities must operate on 80% renewable energy and comply with strict energy and water efficiency criteria. This initiative responds to the surge in connection applications the country has received, which far exceeds projections for 2030.
Government sources assert that the regulation is not a moratorium, but rather a measure to regulate the sector's growth and prevent the problems that have arisen in other countries such as Ireland and the Netherlands. The measure is based on Royal Decree 7/2026 and aims to ensure that centers established in Spain provide real benefits with the least possible impact on the electricity and water systems.
What does the new regulation entail?
The government's proposal affects data centers with a capacity exceeding 1 MW. According to the authorities, these are the ones with significant territorial and environmental impact. To operate, they must demonstrate that 80% of their electricity consumption comes from renewable sources . This figure may change once green energy generation in the electricity system surpasses 90% of the total.
In addition to the energy source replacement, the requirement is that this energy be additional. That is, for every megawatt consumed by the facility, a new megawatt of renewable generation must have been installed during the 18 months prior to its commissioning. This commitment can be met through self-consumption installations or long-term power purchase agreements (PPAs).
Another key aspect that has attracted attention is the time-of-use correlation. The proposal requires that, in each hour of operation, 80% of the electricity consumed be renewable and generated during that same period . In other words, generating surplus energy at midday to compensate for nighttime consumption is not permitted. This prevents demand from driving up natural gas usage and protects electricity bills.
Energy efficiency and digital sovereignty
Sustainability is just one part of the proposal. The new facilities will have to meet the highest energy and water efficiency standards, requiring them to fall into the top category of the European energy labeling system being developed by the European Commission, which is promoting liquid cooling in data centers . This requirement is expected to become mandatory when the EU regulations come into force, in about a year.
Furthermore, data protection and operational resilience are strengthened. Companies managing data centers must be established in the European Union, and the information they process must remain within EU territory. For those hosting data from public administrations or information affecting national security, a formal requirement is added that this information must not leave the EU.
Sector reactions
The Spanish Data Center Association (SpainDC) has expressed its initial reservations. While acknowledging that it is not opposed to progress in sustainability, it requests that the conditions be "proportionate" so that Spain does not lose competitiveness compared to other European countries in attracting investment. Its main concern is that the new requirements will significantly increase development costs and discourage some projects that were already planning to locate in Spain.
The government, however, insists that the measure was agreed upon with the sector and that Spain has no problem attracting projects. The avalanche of applications, which has reached figures of more than 12 GW in connection rights since 2021, demonstrates that there is a unique opportunity to position itself as a digital hub in Europe.
What happens to projects in progress?
The new regulations affect all centers not already connected to the network. Those currently under development will have between three and six months to adapt to the new requirements. If they are unable to comply, exit clauses are in place that allow them to relinquish their access and connection rights without forfeiting any deposits they have made.
If companies fail to comply with the conditions, they will face increasing financial penalties. The ultimate consequence will be the loss of their grid access rights, a measure accompanied by compensation for the electricity system to cover any additional costs incurred due to non-compliance.
In the European context, this Spanish initiative anticipates the future EU Cloud and AI Development Act currently being drafted in Brussels. Therefore, companies wishing to operate in Spain must be prepared to accept a more stringent regulatory framework than that applied in other EU countries. Experts emphasize that, in the long term, this measure could enhance Spain's image as a destination for responsible investment, rather than a haven for polluting projects.
What is clear is that the regulation will mark a turning point for the data center industry. Companies will have to revise their investment forecasts and installation timelines, although the government is confident that the end result will be a more sustainable industry, better able to meet market needs. The opening of the public consultation will be the first step in addressing concerns and determining the limits of the regulations.
