Electricity Sector Expresses Concerns Over Data Centre Regulations and Investment Risks
The Spanish Association of Electricity Companies (aelec) has voiced strong opposition to the governments draft royal decree regulating data centres, warning that the proposed rules could impede demand and jeopardise investment prospects.
In a statement, Marina Serrano, president of the leading electricity sector organisation which includes major companies like Endesa, EDP Spain, and Iberdrola, stated that imposing requirements on data centre development not present in other countries risks driving these investments outside Spain. She underlined that this would negatively affect the countrys economic competitiveness.
Serrano emphasised the importance of increasing demand for electricity to support economic growth and ecological transition. She argued that Spain needs more consumption rather than additional barriers, stating, If we want to electrify the economy, maximise renewable utilisation, and strengthen energy independence, we must facilitate new demand rather than hinder it.
She also warned about the potential adverse effects of reducing electricity consumption on the system. She explained that increased demand improves network utilisation, reduces renewable waste, and cuts costs for consumers and industry. Penalising demand could have the opposite effect, leading to less efficiency and higher costs.
Furthermore, Serrano expressed concern that the proposal to regulate data centres introduces risks for the efficient evolution of the electricity system. She highlighted regulatory uncertainty arising from changes to existing project licences, which could undermine investor confidence in renewables, networks, and new demand initiatives.
While recognising the positive intent behind the draft decree to promote renewable energy deployment, Serrano criticised the approach of mandating generation obligations for end users, which may be unfeasible. She advocates for providing incentives that encourage consumer flexibility, aligning with the broader system development and environmental goals.
Last week, the government launched a public consultation on a draft royal decree which would require data centres to support at least 80 per cent of their energy consumption with new renewable generation each hour of operation.
The initiative aims to regulate the rapid increase in data centre projects, ensuring standards for legal certainty and attracting investment, while also addressing issues seen in other countries such as Ireland, Singapore, the Netherlands, and the United States.
The proposed regulation includes measures on digital sovereignty, requiring centres to be operated by entities subject to EU law, alongside environmental and energy sustainability standards such as consuming renewable energy and adhering to efficiency and water use criteria.
Overall, the regulation seeks high standards in water and energy efficiency, digital sovereignty, technological capacity, and sustainable development, balancing progress with systemic security and growth within the spanish electricity landscape.