(Oct 27): Spain is easing rules for data center power usage and granting them more time to adapt to the new framework, after an initial government proposal faced strong industry backlash.
The revised draft introduces a transition regime over several years if data centre operators cannot match 80% of their energy consumption with renewable every hour of the day. Instead, under the new terms, projects will have to meet 60% of their electricity demand with renewable energy during peak hours, known as P1, until 2029, according to a copy of the draft seen by Bloomberg.
That requirement will climb to 70% in 2029, and then to 80% in 2032. The original tougher proposal would have introduced an 80% level all day immediately.
Spain has become one of Europe’s biggest markets for data centres, largely due to its cheap energy, with the likes of Amazon.com Inc, Microsoft Corp, Blackstone Inc and Merlin Properties Socimi SA all investing in the country. Industry group SpainDC expects IT capacity to rise nearly sixfold to 2.5GW from 2025 to 2030.
The trend faces opposition from the government, which says data centres could push electricity prices up for other consumers and add little value to the broader economy. Earlier this month, Spanish Prime Minister Pedro Sánchez said that they are an “extractive” business and officials have repeatedly criticised the facilities as financial deals rather than industrial projects.
The government first unveiled the plans in late August, heightening the tensions with industry.
Under the revised rules, data centres will also be required to increase the amount of renewable energy to 60% during the second-highest-demand periods, known as P2. This requirement will start in 2029.
The amended draft also relaxes a requirement that renewable power come from newly built power sites. They will be allowed to be 36 months old, compared with the previous proposal of 16 months. Solar plants will be removed from this requirement.
The government says the new rules will prioritise projects that are most likely to be built while discouraging companies from hoarding scarce grid capacity.
The new proposal was sent to a key government consulting body Monday.
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