Spain data centre rules tighten transparency

With hyperscalers eyeing Madrid and Aragón, the Spain data centre rules seek to make growth more transparent, efficient and locally accountable.

Data centres are the quiet engines of AI and cloud services. Spain has become a southern European magnet thanks to stable investment, robust fibre links and growing renewable capacity. Industry forecasts point to electricity demand jumping from roughly 200 MW in 2024 to more than 730 MW by 2026. That surge has sharpened concerns about power and water use, especially in drought-prone regions where residents want clearer benefits.

What the draft decree would require

Facilities with an energy intake above 1 MW would file annual public reports covering:

• Electricity consumed and its origin, with a preference for renewables.

• Water use, including potable water.

• Refrigerants and cooling methods.

• Waste-heat production and concrete reuse plans.

• Jobs created and skill levels.

• Contribution to the local economy and regional development.

New builds must submit an approved heat-reuse scheme—think district heating or nearby industrial processes. Existing sites would have to assess feasibility and report progress. Sensitive centres serving civil protection or defence would be exempt from publication but not from oversight.

Industry pivots to lower-impact designs

Big tech is already testing solutions that fit the direction of travel. Microsoft plans closed-loop liquid cooling in Madrid and Aragón, designed to run without consuming fresh water after the initial fill. The company is targeting water-neutral operations by 2030 and has launched a restoration programme in the Ebro Valley to support efficient irrigation and agriculture. Expect rivals to showcase similar efficiency gains as compliance and community expectations tighten.

“Measure what matters” becomes policy

Officials frame the move as data-driven governance rather than a brake on growth. The goal, said the Secretary of State for Energy, is reliable, comparable information on consumption and impacts so projects contribute to sustainability and local development. By standardising disclosures, Spain aims to align rapid build-out with social licence and EU-level climate goals.

Villamayor de Gállego shows the stakes

Just outside Zaragoza, Villamayor de Gállego has become a test case for how to add capacity without losing public trust. The municipality backed a Microsoft campus at the Malpica industrial estate. A second, separate proposal linked to investment fund Azora has faced vocal resistance amid complaints about poor communication, limited integration with the town and fears of speculation. Aragón’s regional government, keen to brand the area “the Virginia of Europe,” now has to marry speed with meaningful local engagement.

Why this matters beyond Spain

Clearer Spain data centre rules could shape siting and design choices across Europe. Standardised reporting on power, water and heat reuse will make it easier to compare projects and push operators toward cleaner grids, thriftier cooling and community heat networks. Town halls, meanwhile, gain leverage to demand benefits that residents can see and feel.

The road ahead for operators and towns

If adopted in the coming months, the decree will set timelines for reporting and for heat-reuse planning on new campuses. Developers should prepare credible circular-energy designs, source low-carbon power and open early channels with host communities. Municipalities can ready district-energy studies and skills programmes so new sites translate into local jobs and cheaper heating, not just fenced-off compounds.

Bottom line: growth with proof

Spain is not trying to slow digital infrastructure—it’s asking it to show its working. Transparent reports, heat-reuse by design and closer ties with towns could turn a contentious build-out into a model for sustainable, publicly trusted growth. Whether that promise holds will depend on how fast operators adapt and how well communities are brought into the plan.

Sources: El País, El Diario, Strategicenergy