Google’s European data center map, fronted as the “Texas of Europe” with Finland to the north, is full of pushpins. However, southern Europe remains almost empty. Spain seemed the ideal candidate to fill that gap, but some projects have been put on hold by regulatory uncertainty from a government that announced tougher measures in an upcoming royal decree.
Google has suspended its commitment to a large tech campus in Spain, according to the announcement, until details of the new Spanish regulations are known. the world.
Sun breaks the nodes. Regulatory uncertainty has prompted Google and other tech companies to suspend their projects in Spain, subject to a subsequent royal decree by the government that could regulate the environmental conditions and energy sustainability of data centers.
As published by the worldGoogle will halt its projects and billions of dollars in related investments to expand its computing capacity in Spain Google already had a data center in Madrid with servers hosted in third-party centers, but the most affected project is the construction of stations for the Sol submarine cable that will connect Santander to Florida on a plot of about 6,000 m2 in Cantabria. Amazon, for its part, has committed 33.7 billion to Aragon until 2035.
Hunger for computing power. Alphabet raised its spending forecast for this year from $195 billion to $205 billion. Additionally, he acknowledged that the demand for AI is outstripping its current computing capabilities.
Meanwhile, other countries are racing to take on projects that were already on the table. In September, the company announced a 13 billion euro investment in Finland, the largest investment in its history in Europe. Energy supply was also ensured there, including nuclear power plants.
Strict rules regarding durability. The government draft obliges data centers to cover 80% of their costs with new renewable energy sources. And that percentage must be met hourly, not as an annual average. Employers association SpendDC, of which Google is an affiliate, warns that some projects will be too expensive or impractical.
The executive department wants to prevent skyrocketing electricity bills. Numbers give you reason. The CNMC estimates that access permits have already been granted to around 12 GW. The AI strategy predicts a maximum of 4 GW by 2030.
Lobby in Madrid. Google didn’t stand still and sent its best negotiators to Europe along with other tech companies. Exactly as published confidentialKent Walker, Google’s Global Head of Public Affairs, met with the President of CNMC on October 8. The regulator assures that they talked about competition, not decree.
Shortly thereafter, the CNMC report was published, which called for a more flexible approach to various requirements of the draft Royal Decree. With the current text, 80% to 90% of new investments are at risk. Begona Villasis, executive director of Spain DC, is emphatic with these new measures: “It will be built in another place and that’s where they will provide digital services to Spanish companies and citizens.”
Government against the clock. Even if the government wants to approve the decree before the November 29 elections, it will not be easy. The table contains more than 600 complaints and the text still needs to pass the Council of State’s examination. That leaves room for change.
As he progressed the countryExecutive officials are open to softening some of the requirements included in the draft royal decree if data centers do not contribute to rising electricity prices. Google, for now, is saving its portfolio and waiting.
In Xataka | Aragon is filling up on data centers but the question is where the money is going. Amazon responds
Picture | The Magnificent (Kimsunho)
