Spain Pushes For Hourly RE Consumption For Data Centers

The proposed rules would tie renewable power sourcing to grid access for new data centers above 1 MW
Solar powered Data Center, C&I rooftop solar
Spain's draft rules would require new data centers above 1 MW to match 80% of their electricity use with new renewable generation each hour.(Illustrative Image; Image Credit: Make more Aerials/Shutterstock.com)
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Key Takeaways
  • Spain is proposing renewable energy consumption rules for new data centers above 1 MW

  • They could face an 80% hourly renewable power requirement, until Spain’s energy mix reaches 90% renewables

  • Rules would require new renewable energy capacity, linked to each project's expansion

Spain is considering stricter power requirements for new data centers. According to a draft decree, the government is considering requiring projects with over 1 MW capacity to source at least 80% of their electricity from new renewable generation on an hourly basis.

The hourly requirement would make renewable sourcing more demanding because electricity would need to be available when data centers are consuming power, rather than simply matching annual consumption. The requirement would apply until Spain's energy mix reaches 90% renewables.

Large data centers will have the largest impact on local resources such as land and water, hence the decision to select projects above 1 MW capacity. Such facilities will need to be powered by new renewable energy capacity commissioned within the last 18 months before the data center comes online. This could be via self-consumption or through long-term procurement contracts, according to local media reports.

The upcoming rules would apply to new data center projects, while projects already operating would be excluded from the mandate.

The proposal was jointly prepared by the Ministry for Ecological Transition and Demographic Challenge, Economy, Trade and Business, and the Ministry for Digital Transformation and Public Function. It is expected to go through public consultation before being enforced.

Failure to meet the requirements, according to reports, could result in higher surcharges on grid charges and network tariffs. Continued non-compliance could ultimately lead to loss of grid access. Projects already under development would receive a six-month period to comply. The period would be reduced to three months for projects awaiting a grid-access tender.

Killian Daly, Executive Director of EnergyTag, an NGO that works on decarbonizing the power sector, said the rules could connect renewable power requirements more directly with grid access. “80% hourly is a pragmatic start,” Daly wrote on LinkedIn, adding that annual accounting is unsuitable for data centers that operate around the clock. Such a rule will also discourage fossil-fuel growth, he added.

Moreover, the proposal would also introduce energy and water efficiency requirements. Data centers would be expected to meet the highest levels of the European data center energy and water efficiency labeling scheme, which the European Commission is expected to enforce within a year.

The draft would require data center operators to be established in the European Union (EU), with data and metadata kept within European borders. They will need to ensure that access from third countries is controlled.

The proposed rules come as Spain faces strong demand for new data center capacity. Since 2021, the country has awarded over 12 GW of grid access and connection rights to data centers. Local media reports claim that data center projects currently seeking grid connections total more than 10 GW.

Earlier, Australia too proposed a framework outlining future renewable energy requirements for AI data centers while supporting grid reliability. Legislation is expected in early 2027 (see Australia Details RE Framework For AI Data Centers).

Another major data center destination, the US, is encouraging gas-fired power generation; however, corporates are also opting for solar and storage to power this energy-intensive sector. Google, for instance, has partnered with Cypress Creek Energy for the ‘largest’ solar facility in the US, as well as for the company with 2.5 GW DC solar and 2.9 GWh of battery storage. The Steel River Energy Center will power the tech giant’s data center operations in Arkansas (see North America Solar PV News Snippets).

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