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Fast-track permits turn Spain's Aragon into a $70 billion data centre magnet. At what cost?
Located at the crossroads of major international cable connections, Aragon offers abundant renewable energy and land, and is set to see more than €60 billion of investment in data centres and digital infrastructure in the next decade.
Aragon, a sparsely populated region in northeast Spain, has become one of Europe's fastest-growing digital infrastructure hubs thanks to what tech companies call its agile local permitting laws and swift decision-making. Located at the crossroads of major international cable connections, Aragon offers abundant renewable energy and land, and is set to see more than €60 billion ($67.55 billion) of investment in data centres and digital infrastructure in the next decade. A dozen company officials, experts and campaigners told Reuters that the most decisive factor drawing investment to the region is its data centre–friendly governance.
Big tech companies believe Aragon could serve as a model for a European Union seeking to triple its data centre capacity within seven years, and narrow the AI infrastructure gap with the US and China. However, global concerns over data centres' resource consumption, environmental impact and burden on local communities are growing, and Spain's national government is seeking to impose new resource requirements. STREAMLINING A COMPLEX PROCESS In Aragon, the regional government defends its strategy.
"Are we overlooking any requirements for the sake of speed? The answer is no," said Eva Valle, Aragon's economy minister.
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