Spanish Prime Minister Pedro Sánchez has entered the ongoing debate over the global expansion of data centers, including in Spain, to meet the growing demand for digital infrastructure driven by artificial intelligence (AI). In a Bloomberg op-ed, Sánchez argues that while the digital economy is often perceived as intangible, every cloud service and AI application relies on a massive physical infrastructure that consumes energy, uses water, and requires increasing investments.
Sánchez highlights that the rapid growth of data centers has become one of the most tangible expressions of the AI revolution. Since late August, his government has been processing a draft royal decree that imposes restrictions on their development, sparking strong opposition from the data center sector, represented by the Spain DC association. The Ministry of Ecological Transition aims to require data centers to generate 80% of their energy consumption from renewable sources, verified hourly, which would prevent them from relying solely on solar power, unavailable at night.
Spain’s Proactive Regulatory Approach
International examples illustrate the consequences of delayed action. Ireland tightened its rules only after data centers strained its power grid. New York State imposed a temporary moratorium, and many projects faced delays or cancellations due to local resistance. Spain, Sánchez notes, is not yet under such pressure, but its strong economy and renewable energy capacity have attracted significant data center investment interest. Their energy needs are likely to exceed forecasts, with current estimates reaching 4 gigawatts by 2030, while approved permits already surpass this target.
While many projects may not materialize, the upward trend is clear. Sánchez states that Spain is approaching a critical point and must act proactively. The draft royal decree being processed since late August aims to establish a regulatory framework. The proposal is based on a simple principle: the need to ensure that data center projects are credible, viable, and contribute significantly to the economy and society.
The government’s proposal introduces energy and water efficiency standards. It aims to ensure that data centers contribute to the energy transition by requiring a significant portion of their consumption to be backed by new clean energy projects, driven by economic and environmental considerations.