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Fast-Track Permits Make Aragon a Data Centre Magnet

Fast-Track Permits Make Aragon a Data Centre Magnet
Fast-track permits turn Spain's Aragon into a $70 billion data centre magnet. At what cost? · CNBC TV 18

Aragon is a region in northeast Spain that is attracting many data centre projects.

Data centres are large buildings that store and process digital information.

The region offers renewable energy, available land and quick permit decisions.

A special status called PIGA can help some projects get approvals in under a year.

Amazon Web Services plans to invest €33.7 billion in the region, and Microsoft also has major plans there.

Some people worry that approvals happen too quickly for residents to examine the projects properly.

An environmental group has challenged Amazon's fast-track approval in court.

Spain's national government wants tougher rules for how much water and electricity data centres can use.

Companies and Aragon's authorities say those rules could put investment at risk.

Key facts

Projected regional investment
More than €60 billion ($67.55 billion) in data centres and digital infrastructure over the next decade.
PIGA approval timeline
Can reduce approvals from years to under 12 months.
Amazon Web Services investment
€33.7 billion in cloud services and AI infrastructure in Aragon.
Microsoft investment plan
Plans to invest up to €10 billion in Aragon.
Public review period
The public had 23 days at the end of 2024 to review about 25,000 pages of Amazon project documents.
Amazon community programmes
AWS said it would spend €30 million on local programmes, including education and sustainability.
Spanish government proposal
Draft rules would impose tougher water and electricity requirements on data centres.

Quotes

Judith Arnal

Senior research fellow at think tank Fedea

“Based on our experience, the PIGA process in Aragon, Spain, has been successful to reduce the administrative burden on companies and most importantly the handling time, while ensuring a high compliance standard with applicable regulations.”
CNBC TV 18
“Are we overlooking any requirements for the sake of speed? The answer is no. We're simply streamlining a process that can be very complex. It's surprising how much time can be saved simply by bringing a little order to it.”
CNBC TV 18

Sources

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