Spain eases data center green power rules

Spain has reworked its planned regulatory framework for data centers, easing renewable-energy and capacity requirements that had sparked opposition from operators. The revised draft decree focuses the strictest rules on large facilities with more than 10 megawatts of power capacity, lifting the bar from an earlier plan that would have applied from 1 megawatt. Mid-sized centers serving sectors such as 5G infrastructure, banking, manufacturing and healthcare are relieved from the obligation to secure dedicated renewable generation under the new threshold.

Data centers covered by the decree must still align most of their power consumption with renewable sources, but the pathway to doing so has been made more flexible. Instead of an immediate requirement to match 80% of energy use each hour with real-time green output, operators can choose between full compliance from day one or a structured transition period.

Under the transition option, projects may initially meet 60% of their electricity demand with renewable energy during peak hours until the end of 2028. From 2029 to 2031, that requirement rises to 70% while maintaining the goal of ultimately reaching 80% renewable coverage for every hour of operation. This phased approach is intended to make the hourly matching requirement more achievable while retaining the long-term target for decarbonising data-center power use.

Industry groups had warned that strict hourly correlation at an 80% level was difficult to meet, particularly when solar output falls at night. The updated design allows operators to build up renewable contracts and capacity over several years rather than meeting the full quota immediately, while still tying consumption to verifiable green generation over time.

Spain has also loosened rules on how data centers procure renewable electricity. The period in which new renewable plants must be brought online to support a facility has been extended from 18 months to 36 months before the data center starts operating. Solar photovoltaic installations can now count toward the requirement regardless of their age, removing a prior restriction on plant vintage.

Other contractual conditions have been eased, such as shortening the mandatory duration of power purchase agreements from ten to six years. These changes are intended to broaden the pool of eligible projects and financing structures that can supply green power to large computing complexes and cloud providers.

In exchange for more time and flexibility, operators that opt into the transition period must accept tighter operational controls. They are required to join the Automatic Power Reduction System, allowing the grid operator to order a rapid cut in electricity use, potentially down to zero, if grid congestion threatens stability. Such curtailments will not trigger compensation and are explicitly shielded from liability claims against the system operator or the state, including from affected customers connected at the same node.

The decree also sets out enforcement tools to ensure long-term compliance. Failure to meet renewable quotas can result in surcharges on transmission and distribution tariffs, which may range from 100% to 500%. Persistent serious non-compliance for five consecutive years can lead to the permanent loss of grid access and connection rights. Developers with existing permits but not yet connected will have six months from the law’s entry into force to relinquish those rights while recovering their financial guarantees.

Spain has positioned itself as a major European hub for data centers, helped by abundant renewable resources and available land. Sector representatives had cautioned that a large share of these projects could shift to other countries if regulatory demands were seen as too onerous. The latest revisions aim to reconcile Spain’s decarbonisation goals with efforts to retain large-scale investments linked to artificial intelligence and cloud infrastructure.