The Spanish government is set to pass new legislation requiring data centers to source at least 80 percent of their electricity consumption from new renewable generation on an hourly basis.

First reported by Europa Press, the Spanish government approved the draft decree for fast-tracked legislation. The new requirements are expected to apply to data centers with a capacity of 1MW and more. The Spanish government is expected to put the proposal for public consultation prior to the rules being enforced.

The requirements will be applied to new data center projects, not facilities already operating.

The proposed rules would require data center operators to power at least 80 percent of their facilities from renewable sources until the country’s energy mix reaches 90 percent renewables. The renewable power would be in addition to the facilities’ existing generation, with each new MW of capacity requirement matched with equivalent renewable generation installed within 18 months before the data center reaches operational status.

Reports suggest that the requirement could be met through onsite renewable deployments, such as rooftop solar, or via Power Purchase Agreements.

Compliance with the new regulations would be measured hourly rather than annually. Failure to comply with the regulations would lead to increasing surcharges on the facilities’ grid charges, alongside network tariffs, which could lead to the loss of access to the grid.

Projects already under development will be provided with a six-month grace period to comply with the regulations, or three months if they are waiting for a grid-access tender.

The rules also contain requirements on energy and water efficiency, with data centers expected to meet the highest levels of the European data center energy and water efficiency labeling scheme, which is slated to be enforced by the European Commission within a year.

While the new rules could significantly curtail data center development, sources told Europa Press that the draft decree doesn’t amount to a moratorium on data centers.

Spain is experiencing a data center boom, as operators flock to the country due to its ample land and high renewable generation potential. Currently, data center projects seeking grid connections in the country total more than 10GW.