The data center decree dilutes the requirements for AI gigafactories like the one in Móra la Nova

MadridThe Spanish government is determined to approve the decree regulating the requirements for energy, environmental sustainability, and digital resilience and sovereignty for data processing centers (DPCs) in Spain before the general elections on November 29th, even though the deadline is very tight. In this way, it has submitted a new text to the Council of State after studying more than 600 allegations during the public hearing period, as well as the mandatory report from the National Commission on Markets and Competition (CNMC) which pointed out that the government's initial energy and renewable requirements were too "strict." The final document maintains the requirements for the industry, but is more flexible with compliance. For example, they will have five years to adapt to requirements such as the obligation to justify consumption through renewable energy.

But beyond the changes regarding the first proposal –to which the industry's business association was totally opposed, as were the companies with the greatest interests in the State: Amazon, Microsoft, Google, or ACS–, the new regulation includes a loophole to dilute the requirements for projects such as the artificial intelligence (AI) gigafactory proposed for Móra la Nova (Ribera d'Ebre) and San Fernando de Henares (Madrid), which the Spanish government itself has sponsored. Specifically, the central executive wants to provide flexibility to projects that are born with the goal of boosting "strategic sovereignty" in this matter and to differentiate them from strictly private initiatives, to which a general regime will be applied.

Specifically, the text includes a special regime for certain computing infrastructures, including artificial intelligence gigafactories, AI factories, and supercomputers, as well as projects that the Spanish government presents to European calls. None of them are exempt from sustainability obligations, but they are allowed to comply with them gradually and under specific conditions. For example, a strategic center such as the AI gigafactory planned for Móra la Nova and Madrid could benefit from more flexible water efficiency limits than the data centers affected by the decree's general regime. This, however, will not be indefinite.

In summary, the main advantages involve a gradual schedule in terms of energy and water efficiency, more time to certify the generation of additional renewable energy, and a specific pathway to demonstrate European sovereignty and control over the infrastructure.

Pending the Council of State

Now the text is on the table of the Council of State. It has been processed via urgent procedure and sources from the Spanish government trust that this body will act with speed. That is why Pedro Sánchez's executive is confident in being able to approve the royal decree before the general elections in the State on November 29th. The alternative would be to approve it while acting as a caretaker government. Furthermore, as it is not a royal decree-law, it does not need the validation of Congress and, therefore, it will not pass through the Permanent Deputation, the entity that can exceptionally approve royal decree-laws even if the Spanish lower house is dissolved due to the calling of elections.

The regulation and, specifically, the environmental requirements caused a clash between the Spanish government and the employers' association of data centers. These centers are considered large consumers because, among other things, they have permanent cooling systems that require a lot of energy.