Author: Adrián Tam Vera – adrian.tam@alumnos.upm.es

Data centers are facilities that concentrate computing infrastructure (servers, storage, networks, cooling systems) to host applications, process information, and store data. Their presence brings multiple benefits: they generate substantial investments, create jobs in ICT and engineering, accelerate digitalization, and strengthen the country’s competitiveness.

Given the saturation of major European hubs (FLAP-D) due to land, energy, and environmental constraints, new locations are needed for these emerging investments. However, behind this technological boom, an important question persists: are these centers solely drivers of digital development, or do they also represent an unsustainable environmental burden? This article explores both sides of this opportunity and examines the impact on energy and water resources, as well as land use.

Figure 1. Aerial view of an operational data center. Source: Navex Consulting (Rubio, 2025).

Conflicting Landscape and Environmental Impacts

Since 2022, with the opening of Google’s Cloud region in Madrid, Spain has established itself as a preferred destination thanks to its strategic position, fiber optic infrastructure, and renewable energy potential. However, these “green” promises clash with territorial realities: bottlenecks in the electrical grid, difficulties in guaranteeing continuous renewable supply, and pressure on water resources and industrial land.

Demand is concentrated in a few nodes (Madrid, Aragon, and Valencia), where more than 80% are saturated, compromising local stability while reinforcements take years to complete. The central problem is not the lack of renewable energy, but its intermittency. 40% of generation comes from wind and solar photovoltaic sources, with peaks between 11 a.m. and 5 p.m. but dropping to zero at night. In 2024, Spain recorded over 1,100 hours with zero or negative energy prices due to limited storage capacity (only 3.36GW), demonstrating that the Spanish grid lacks the necessary storage to supply continuous 24/7 consumption.

The constant demand for cooling water is problematic in areas with structural water stress. 74% of Spanish territory is susceptible to desertification, and the European Environment Agency classifies Spain as having high water stress, making the country especially vulnerable to new data centers. Amazon requested a 48% increase in water allocation for its three centers in Aragon, a concerning petition because these centers consume water continuously and inflexibly, maintaining high demand even during critical drought periods. The lack of transparency exacerbates the problem, the European Commission lacks data on the actual consumption of these infrastructures.

Data centers require extensive areas that compete with other land uses. Industrial land prices have multiplied up to fivefold in less than a decade, pushing manufacturing companies toward more remote areas. This process is problematic because, although data centers generate employment during construction, in operation they are highly automated facilities with very limited personnel demand. Consequently, a less inclusive land use pattern emerges where industrial activities that do generate local employment are forced to locate far from urban centers, with worse connections.

Spain is processing a royal decree that will require centers with demand exceeding 500kW to report energy and water consumption indicators, an institutional signal that the problem remains unresolved.

Figure 2. Map of data center distribution in Spain. Source: elEconomista.es (Esteller & Lorenzo, 2024).

Proposed Solutions

Addressing the problem requires a contextualized approach. In the water sector, measures must be implemented to reduce pressure on conventional sources in basins with structural stress: reclaimed water where infrastructure is available and cooling technologies that minimize consumption. Liquid cooling techniques can reduce water consumption by 31-52% and decrease energy demand by 15-21%, improving the environmental footprint. Any authorization must be based on a comprehensive assessment of the basin’s water stress, not just national water availability.

In energy matters, the main preventive measure is better planning that avoids aggravating the saturation of critical nodes. Administrations must establish preferred zones where the grid has verified available capacity, so that authorization depends on the electrical node’s actual capacity to assume continuous load without compromising its stability. To resolve the mismatch between intermittent renewable production and continuous consumption, a sustainable data center must invest in energy storage: BESS batteries and thermal batteries that store heat in reusable materials. Demand response mechanisms are also necessary to make consumption flexible, adjusting it when the system requires through management of non-critical activities.

Regarding land use, every project must be accompanied by a territorial compatibility report that evaluates its impact on land prices and the productive fabric. Autonomous communities must identify specific zones for high-consumption infrastructures, avoiding direct competition with industrial land. Territorial plans must establish a minimum reserve for manufacturing and logistics industries, ensuring that real estate pressure does not displace activities that generate employment. Urban taxes can be applied to internalize territorial impact.

Governance must evolve to ensure that data center development is a participatory and transparent process. Creating public consultation procedures will enable citizens to learn about expected water, energy, and land consumption, as well as the infrastructure’s benefits.

In conclusion, data centers represent a commitment to digital transformation, but their massive implementation in Spain cannot be carried out at the expense of its resource’s stability. The problem does not lie in the lack of renewable energy or national water, but in where and how they are consumed. The key is not to halt technological development, but to ensure this growth is compatible with the territory. Planning instruments and mechanisms to internalize environmental impacts are required. Without transparency and early participation, distrust grows. The debate should not focus on whether we want data centers, but on what conditions we accept them: with verifiable information and measurable commitments. The model’s success will be measured by whether each project demonstrates its water, energy, and territorial viability.