The data center market in Spain is growing, but it faces significant challenges, the main one being ensuring a stable and adequate energy supply, particularly in areas with a high concentration of these infrastructures. This is one of the key conclusions of the first analysis of Spain’s energy transition conducted by the consulting firm DNV.

Data centers are essential infrastructures for the functioning of digital services inherent to key technologies such as cloud computing, artificial intelligence (AI), and the Internet of Things (IoT). The storage and processing needs for these technologies continue to grow, as does the electricity demand to power these data centers.

As Carlos Albero, Market Area Manager of DNV Iberia, explains, “Spain has attracted significant investments from tech giants like Apple, Amazon, Google, and Microsoft due to its strategic location, access to renewable energy, improved connectivity and digital infrastructure policies, lower costs compared to other large European countries, and government support with various policies and initiatives. However, it must ensure sufficient renewable and affordable energy to meet future needs, doing so while balancing the increase in capacity with a sustainable, environmental, and social approach. This is crucial for the successful evolution of data centers in Spain.”

Growth of Electric Capacity

The DNV analysis shows that Spain’s growing role as a technological hub in Europe, attracting significant investments, means that Spanish data centers currently have an electrical load capacity close to 900 MW. The firm forecasts that this will reach 1,350 MW in 2030 and possibly 4,000 MW by 2050.

For Albero, “The development of new infrastructures, especially in regions like Madrid and Barcelona, has been a key factor in this growth. Areas with high connectivity and access to sustainable energy sources are experiencing a boom in data center construction to meet the demand for digital services and real-time processing.”

Alongside the growth in capacity, DNV forecasts a significant increase in the annual energy consumption of data centers in Spain. The firm estimates that these centers will consume over 6 TWh in 2024, and that energy consumption will rise to around 12 TWh in 2030 and could reach 26 TWh in 2050, as data processing capabilities and digital services expand, while the efficiency gains of new technologies will moderate this growth.

DNV’s data reveals that, currently, data centers and AI consume 13% of the electricity used by commercial equipment, a figure expected to reach 44% by 2050. Together, data centers and AI account for 4% of Spain’s total electricity demand in the building sector today, a figure expected to rise to 15% by 2050.

This demand poses a significant challenge for Spain’s electrical grid, which will have to ensure a reliable and sustainable energy supply. As the capacity of data centers grows, energy efficiency, grid reinforcement, and the adoption of renewable energy sources will become key priorities for sector operators.

Operators are investing in energy efficiency technologies to reduce the impact of their facilities. Some of the measures adopted include advanced cooling systems, such as using outdoor air to cool servers, and reusing the heat generated by equipment for other purposes, like heating nearby buildings.

“Collaboration with electricity companies will be essential to ensure that the grid can support the projected growth without compromising its reliability. The adoption of renewable energy sources and a push for energy efficiency will be key factors in mitigating the environmental impact of this growth. Future data centers in Spain will increasingly align with sustainability goals, aiming to reduce their carbon footprint while continuing to drive the digital economy,” says Carlos Albero.

Renewables Quadrupled

DNV predicts that renewable energy capacity in Spain will quadruple by 2050, with solar capacity increasing to 230 GW and wind capacity reaching 120 GW, positioning Spain as a leading European solar market. This increase will not only boost energy security but also reduce electricity production costs, making Spain’s solar energy 10% cheaper than the European average and its onshore wind 15% cheaper by mid-century. Additionally, fossil fuels, which currently account for 70% of the energy mix, are expected to fall below 30% by 2050.

Despite this positive outlook, Spain’s short-term goals remain challenging: DNV analysts predict a 13% reduction in greenhouse gas emissions by 2030, compared to the 32% reduction currently projected by Spain’s National Energy and Climate Plan (PNIEC).

Despite the competitive costs of renewable energy in Spain, which are already below the European average, immediate infrastructure limitations could slow down progress.

The share of renewables in Spain’s total energy mix will only rise from the current 22% to 26% by 2030, below the 35% target set in the PNIEC for that year, as part of the path to achieving 50% by 2050, with contributions from electric vehicles, energy-efficient buildings, and industry. “Bottlenecks in permit granting and limited interconnections threaten this shift. Therefore, it is necessary to streamline regulatory frameworks and expand grid capacity, especially as electric vehicle adoption and the electrification of buildings and industry grow. It is crucial for all sector players to work together to ensure a sustainable and efficient energy future,” concludes Carlos Albero.