Spain Eases Data Center Requirements After Industry Backlash

The Spanish government has significantly softened its proposed decree for data centers after receiving over 600 complaints from the industry. The new version, sent to the Council of State on Monday, raises the power threshold for regulation from 1 MW to 10 MW, exempting smaller projects Source: ABC. It also introduces a five-year transition period for meeting renewable energy requirements, a key concession to address industry fears of investment flight Source: La Vanguardia.

Key Changes

• Threshold raised: The decree now applies only to data centers with a connection capacity of 10 MW or more, up from the original 1 MW, reducing the number of affected projects Source: ABC.
• Renewable energy mandate: The core requirement remains that 80% of hourly energy consumption must be backed by new renewable generation. However, a transition period allows qualifying projects to start at 60% coverage during peak hours until 2028, then 70% until 2031 Source: La Vanguardia.
• Flexibility mechanisms: The government has extended the allowed age of associated renewable plants from 18 to 36 months and now explicitly includes energy storage installations. Power Purchase Agreements (PPAs) have been shortened from 10 to 6 years Source: ABC.

Industry Reaction

The initial draft had put the sector on a war footing, with Spain DC warning of a massive exodus of investments Source: La Vanguardia. The new text aims to balance grid stability and consumer protection with the need to attract large-scale tech infrastructure. Projects entering the transition period must also agree to be managed flexibly by Red Eléctrica, potentially being disconnected during grid contingencies Source: ABC.