The lack of power grid stalls nearly 150 data centers in Andalusia: $74 billion investment at stake

Andalusia has the potential to become a digital powerhouse, but its electrical grid is holding it back. Since 2022, Endesa has received 305 requests to build data centers in the region. Collectively, these projects would require 5,133 megawatts (MW) of power. However, 48% of those requests (2,313 MW) are unviable—not due to a lack of investors or land, but because of the inability to connect to the high-voltage grid.

The economic impact is significant. According to Spain DC, the region could lose around €27.76 billion in direct investments and an estimated €46.26 billion in indirect investments. In total, over €74 billion is blocked by an electrical infrastructure that isn’t ready to accommodate the digital growth that Andalusia demands.

The Andalusian government has done its part, requesting the central government—responsible for transmission networks—to construct six new substations, 88 additional positions, and eight double-circuit lines, with an estimated budget of €544 million between 2025 and 2030. Without these upgrades, neither Endesa nor other operators can move forward with new medium-voltage stations.

The situation worsens as only 32% of the projects (2,200 MW) have been validated, and even within that percentage, some applicants have withdrawn due to energy and regulatory uncertainties. Another 20% of requests are still under review or have been rejected due to documentation errors.

The most requested areas are Sevilla (20 requests) and Málaga (13). In Sevilla, the metropolitan area features projects in Alcalá de Guadaíra, Dos Hermanas, Mairena del Aljarafe, La Rinconada, and Sanlúcar la Mayor. In Málaga, the city itself and nearby towns such as Ronda, Vélez-Málaga, Antequera, Estepona, and Mijas are on investors’ radar. Cádiz and Granada each have nine requests, followed by Córdoba, Jaén, and Almería.

Begoña Villacís, CEO of Spain DC, clearly explains: “From this morning’s WhatsApp message to paying a Bizum, everything passes through a data center. We are indispensable to the connected digital life that defines our era.” She emphasizes that Andalusia has ideal conditions for becoming a European leader, including land availability, access to renewable energy, and technological hubs like Sevilla and Málaga.

However, she also warns that the bottleneck isn’t energy production but its distribution and planning. The current Electric Transportation Plan 2021–2026 relies on 2018 data, which is outdated. Spain DC insists that the new 2025–2030 plan must incorporate the sector’s real needs, especially concerning data centers, artificial intelligence, and digital services.

Beyond infrastructure, the sector faces a talent challenge. In 2023, Spain DC identified 140 high-demand professional profiles in fields like electricity, refrigeration, cybersecurity, and automation. Initiatives are underway in collaboration with universities such as Comillas Pontifical University to close this skills gap.

Regarding system stability, Villacís affirms that data centers are prepared for adverse scenarios like blackouts: “All have backup systems, and the sector experienced no significant incidents during the major blackout on April 28.”

Madrid leads in data centers, followed by Catalonia, but regions like Aragón and Extremadura are gaining ground thanks to institutional support and available land. Andalusia could join—and potentially lead—if necessary electrical connections are unlocked.

“We cannot afford to miss this historic opportunity,” Villacís concludes. “Andalusia and Spain are capable of leading digitalization and sustainability, but all administrations need to make a decisive commitment.”

Key data on the economic impact of electrical grid blockage in Andalusia:

Did you know that 100% of the movies, apps, video games, or telemedicine services we use daily rely on data centers? The future of digital depends on them—if the electricity supply allows.

Source: el conciso