Spain submitted its seventh recovery payment request on 30 September 2026 for 25.861 billion euros across 148 milestones, adding the data center decree after dropping earlier tax reforms.
The proposed decree mandates that data centers exceeding 1 megawatt match at least 80% of their electricity consumption with new renewable generation in every single operating hour.
Economist Diego Rodríguez found that Spain met the 80% renewable threshold in only 36 hours during 2025, and estimated that compliance could drive power costs above 100 euros per megawatt-hour.
Aragon President Jorge Azcón challenged the fast-tracking of the decree before the 29 November 2026 elections, questioning the review of more than 600 public submissions.
Spain submitted its seventh and final payment request under the European Recovery Plan on 30 September 2026. The submission seeks 25.861 billion euros and links disbursement to 148 milestones and targets, which represent approximately 30% of Spain's total commitments under the programme. To compensate for dropped measures, including a planned diesel tax increase and broader fiscal reforms, the government added a royal decree regulating data centers into the final package. The European Commission has until 31 December to evaluate the file, though officials expect a disbursement decision in November. Prime Minister Pedro Sánchez called an early general election for 29 November 2026, prompting ministers to compress the regulatory timetable so the decree can take effect before citizens vote.
The Ministry for Ecological Transition prepared the draft decree alongside the ministries of Digital Transformation and Economy. The regulation applies to all data centers with a capacity exceeding 1 megawatt that connect to the national grid after the text becomes law, regardless of whether they already hold grid access permits. Under the draft rules, operators must secure new renewable energy generation covering at least 80% of their electricity consumption during each hour of operation. Operators can satisfy this requirement through on-site self-consumption or long-term power purchase agreements lasting at least 10 years with newly built renewable installations. The text also imposes digital sovereignty, resilience, and environmental sustainability standards on qualifying projects.
An analysis prepared by economist Diego Rodríguez for the Foundation for Applied Economic Studies (Fedea) described the hourly renewable threshold as disproportionate. Spanish renewable generation accounted for 55.5% of total power production in 2025, but the national power mix exceeded the 80% renewable threshold in only 36 of the year's 8,725 hours (roughly 0.4% of the time). Fedea calculated that operators trying to fulfill the requirement during calm, dark hours would need to overbuild clean generation and battery storage relative to their actual facility load. Diego Rodríguez estimated that each unit of data center capacity would require 1.5 times that capacity in wind power, 6.3 times in solar photovoltaic installations, and 2.9 times in battery storage. The study found that these requirements could push levelized electricity costs past 100 euros per megawatt-hour, removing the price advantage Spain currently holds.
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Regional officials and corporate executives voiced their positions at the Global Trends 2026 forum organized by AmChamSpain. Aragon President Jorge Azcón opposed the fast-track process, arguing that the cabinet wants to bypass parliamentary scrutiny while facing more than 600 public submissions. Azcón accused the central government of sacrificing technological growth for short-term electoral gain ahead of the 29 November poll.
“The Government of Spain knows that there are many people who do not understand AI and it causes them fear, which is why it will go to a debate as controversial as possible, thinking of the technoligarchs, and will sacrifice a technological and economic future of my community, of our country, to snatch a handful of votes.”
Corporate leaders at the forum presented divergent views on the regulatory scope. Vicente Maraña, chief executive of ACS Digital and Energy, described data centers as critical infrastructure and an opportunity that the country cannot ignore. Diego Díaz Pilas, head of new technologies at Iberdrola, cautioned against excessive rules, stating that renewable energy lacks electricity demand rather than generation supply. Because the draft is a royal decree, it requires only legal assessment from the National Markets and Competition Commission (CNMC) and the Council of State before reaching the Council of Ministers.
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The Spanish government has offered Brussels a royal decree regulating data centers to unlock 25.861 billion euros in recovery funds before the 29 November election, drawing opposition from industry groups and regional leaders.
AI text based on reports by EL PAÍS, ABC TU DIARIO EN ESPAÑOL, eldiario.es and other publishers. Published .