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Spain's Data Center Rules Likely to Ease, Nordic Energy Deals Advance, RBC Says

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Energy markets across Europe are seeing regulatory and investment shifts, as Spain weighs easing data-center rules while Finland's Fortum advances its takeover of Elmera, RBC Capital Markets analysts said in a note on Thursday.

Spain is likely to significantly ease proposed data center regulations after rushed drafting produced requirements that could undermine the country's energy-cost advantage.

The draft Royal Decree, prepared by three ministries, would require data center operators to source at least 80% of their hourly electricity consumption from renewable sources and to match each new megawatt of demand with a newly installed megawatt of renewable capacity built within the previous 18 months, either through self-generation or power-purchase agreements.

It would also impose a Power Usage Effectiveness cap of 1.15, along with new cybersecurity and digital-sovereignty requirements.

RBC said the measures could eliminate Spain's levelized cost of energy advantage. The government has extended the public consultation deadline to Sept. 10 following industry opposition, which RBC said signals a willingness to revise the rules.

Industry group SpainDC has warned the proposals could put as much as 60 billion euros ($66 billion) of potential investment at risk. The government drafted the rules after grid-access requests exceeded 30 gigawatts, roughly 10 times projected demand through 2030.

Spain's regulated electricity tariff, PVPC, has also continued to lose customers, falling below 8 million for the first time. The tariff has shed about 2.5 million users since 2021 as households have shifted toward fixed-price contracts. PVPC prices rose 20% year-on-year in August to their highest level for the month in four years.

Meanwhile, Finland's Fortum has secured regulatory clearance for its 47 Norwegian krone ($5.06)-per-share cash offer for retail supplier Elmera Group, clearing the final antitrust hurdle. The deal remains conditional on Fortum acquiring more than 90% of Elmera's shares and voting rights, with the offer closing Sept. 18.

Separately, RBC said 3IN has completed its roughly 263 million-euro investment in Norway's Lefdal Mine Datacenter, taking just over 45% of the equity. The transaction includes a further 19 million euros of committed funding, with another 19 million euros from co-investors.

RBC highlighted Lefdal's long-term availability-based contracts with financial institutions and government agencies, as well as its potential for campus expansion, as key attractions.

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