Economy

Government Seeks to Prevent Electricity Bill Increases with Data Center Decree

The Spanish government says its data center decree aims to manage growth and prevent expansion from causing energy supply, water consumption or social acceptance problems. In Aragon, 3.6 gigawatts of access to the electricity grid have already been granted—triple the region’s electricity demand—although, as Economy Minister Eva Valle noted on Friday, the region produces more than twice the electricity it uses.
Government Seeks to Prevent Electricity Bill Increases with Data Center Decree

This high level of interest is not exclusive to the Aragonese region. In Madrid, granted access rights amount to 4.1 GW, which would double its consumption. In addition, access and connection to electricity grids have been granted for more than 12 GW of capacity—three times the amount forecast in 2024, according to the Artificial Intelligence Strategy.

THE GOVERNMENT WANTS TO AVOID THE PROBLEMS SEEN IN OTHER COUNTRIES

The government has warned that the uncontrolled growth of data centers in countries such as Ireland, the Netherlands and the United States has led to sharp increases in electricity prices. This has been compounded by tensions over water supplies and strong social opposition, prompting moratoriums on new facilities and causing public support to decline because of the political cost.

The government considers these centers to be “essential infrastructure in a modern economy” and believes Spain must select the best projects, “those that deliver the greatest benefits with the lowest environmental impact and without causing an increase in electricity bills.”

One of the sector’s main complaints, including from the Aragon government, is the requirement to consume 80% new renewable energy during all operating hours, through self-consumption or long-term supply contracts. The Ministry for the Ecological Transition maintains that this requirement is largely shared by regulations in Ireland, Germany and China, and that it will disappear once the generation mix exceeds 90% renewables.

In the event of failure to meet the 80% renewable supply requirement, the government has clarified that data centers will face increasing penalties on their electricity bills, applied to the relevant charges and network tariffs, to offset the additional costs that would otherwise be passed on to other electricity consumers. Repeated non-compliance could result in the loss of grid access.

The draft Royal Decree has just completed its public consultation phase. During the process, more than 600 submissions were received, many of which “demonstrate environmental and social concerns.”