Business · Energy & Commodities · 2 days ago
Spain’s competition regulator urges looser rules for data centers
Spain’s competition regulator, the CNMC, has reviewed a government draft decree setting rules for data centers.
The draft would require each center to cover at least 80% of its yearly electricity use with renewable power from new facilities or its own generation.
It would also require renewable power to match 80% of a center’s use in each hour.
The CNMC says those requirements could force excessive investment in renewable plants and storage, raising costs and potentially enlarging the electricity grid unnecessarily.
It points to hours when Spain already has more renewable electricity than demand can use, including nearly 600 hours of negative prices in the first half of 2026.
The regulator recommends making the rules more flexible, including counting some surplus-power hours as meeting the renewable requirement and allowing more time for linked power plants to start operating.
The report is advisory, so the government may decide whether to change the draft.
Spain’s competition regulator has urged the government to ease proposed rules requiring data centers to use new renewable power.
The CNMC says strict additionality and hourly matching requirements could raise costs and lead to excessive investment in generation, storage and the electricity grid.
The draft would require data centers to cover at least 80% of annual consumption with renewable generation linked to the facility and to match 80% of consumption with renewable power hour by hour.
The regulator points to nearly 600 hours of negative electricity prices in Spain in the first half of 2026 as evidence of renewable energy surpluses at some times.
It also recommends longer deadlines for associated renewable plants and changes to proposed penalties and energy- and water-efficiency rules.
- Who
- Spain’s National Commission on Markets and Competition (CNMC) and the government.
- What
- The CNMC has recommended changes to proposed rules for data centers, including easing renewable-power requirements.
- When
- The report was published on Friday, October 9, 2026.
- Where
- Spain.
- Why
- The CNMC says the draft’s requirements could distort market signals, raise costs and lead to excessive grid, generation and storage capacity.
CNMC
Spanish government
Renewable-power requirements
CNMC
The CNMC wants the 80% additionality requirement applied more flexibly, especially when renewable energy is already in surplus.
Spanish government
The draft requires data centers to cover at least 80% of annual consumption with new renewable generation.
Hourly matching
CNMC
The CNMC says strict hourly matching could require excessive generation and storage, and proposes excluding some surplus or low-price hours.
Spanish government
The draft requires 80% of energy consumed in each hour to be backed by renewable generation produced in that same hour.
this requirement could oblige operators to rely on substantial oversizing of renewable generation and storage, creating high grid costs as well as preventing resources from being used optimally
Forcing data centers to promote more wind or solar parks is inefficient and increases grid costs
The regulator itself points out that the requirements may displace projects or prevent them from going ahead. Spain needs technically viable, proportionate and predictable regulation so that investments can be developed with legal certainty
Spain recorded nearly 600 hours of negative electricity prices.
The CNMC published its consultative report recommending changes to the proposed data-center rules.
- Renewable coverage
- At least 80% of annual consumption under the draft
- Renewable plant deadline
- The draft allows plants to start no more than 18 months before the data center; the CNMC recommends extending the period
- Negative-price hours
- Nearly 600 in the first half of 2026
- Proposed penalties
- Recargos of 10% to 500% on electricity system charges, depending on the seriousness of non-compliance
- Associated organization
- Spain DC, the Spanish Data Center Association
Sources
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