Feasibility and Demand Tenders for Data Centers

Environmental audit conducted by the EHS Techniques team at a Data Processing Center (DPC) facility in Madrid.

Power grid availability has become one of the main challenges for data center development in Spain. Demand growth, driven by artificial intelligence, cloud services, and the digitization of the economy, has led numerous transmission grid nodes to reach their capacity limits.

In this context, securing grid access no longer depends solely on submitting an application. When demand exceeds available capacity, the Ministry for the Ecological Transition and the Demographic Challenge (MITECO) allocates power through demand tenders, where projects compete based on environmental, economic, and maturity criteria.

For developers, investment funds, and engineering firms, understanding these criteria from the earliest stages of the project is essential to maximize the chances of securing capacity and reduce risks during the permitting process.

What are demand tenders?

Demand tenders are the established mechanism for allocating access capacity in those transmission grid nodes where applications exceed the available power.

Unlike the ordinary procedure, allocation is not based on a first-come, first-served basis, but rather through the objective assessment of each project in accordance with the criteria established by MITECO.

This means that the technical quality of the proposal, the project planning, and the submitted documentation play a decisive role.

Official resources for project planning

Before acquiring land, starting engineering work, or preparing an access application, it is advisable to consult the main official sources that provide insight into the grid status and the applicable regulatory framework.

Grid capacity availability

The “Conoce la Capacidad de Acceso” (Know Your Access Capacity) portal by Red Eléctrica allows users to consult the interactive map of available capacity in the transmission grid and perform a preliminary assessment on the feasibility of the planned connection point.

This initial check helps identify whether a node has margin for new applications or if, on the contrary, it presents access limitations.

Nodes subject to tender

Red Eléctrica periodically publishes the list of nodes where high demand requires capacity to be allocated through a tender process.

Likewise, the Customer Portal (Portal de Clientes) allows users to track the evolution of access applications and the volume of power requested at each site, providing information that is particularly useful for assessing the level of competition.

Regulatory framework

The assessment criteria for demand tenders are regulated by the Resolution of the State Secretariat for Energy, issued pursuant to the sixth transitional provision of Royal Decree-Law 8/2023.

Knowing these regulations is essential for preparing a submission aligned with the requirements demanded by the Administration.

Grid capacity is no longer obtained simply by submitting an application.

In nodes subject to tender, projects compete against each other, and allocation currently depends primarily on three factors:

  • Greenhouse gas emissions avoided.
  • Volume of investment.
  • Estimated date of commencement of consumption.

Preparing these three aspects correctly from the very beginning of development can make the difference between securing capacity or being excluded from the process.

The three criteria that determine the allocation

Greenhouse gas emissions avoided

This is the criterion with the highest weight in the tender evaluation and constitutes the main differentiating element among the various applications.

The objective is to prioritize those projects that contribute effectively to the energy transition and emission reductions. To achieve this, the developer must technically justify the avoided greenhouse gas emissions using a robust, transparent, and perfectly documented methodology.

In the case of a data center, this assessment can be favored by aspects such as contracting renewable energy through PPA agreements, designing energy-efficient facilities, or incorporating measures that reduce the carbon footprint of the infrastructure.

An insufficiently justified estimate or one based on inconsistent assumptions can significantly reduce the score obtained.

2. Volume of investment

Once the environmental criterion has been evaluated, the Administration assesses the investment associated with the project.

The objective is to favor those actions that generate a greater economic and industrial impact in relation to the requested capacity.

Therefore, it is important to properly document the planned investments and prove their direct link to the development of the infrastructure.

3. Start date of consumption

The third criterion measures the degree of maturity of the project.

The Administration prioritizes those initiatives capable of putting the facility into service within a shorter timeframe, preventing electrical capacity from remaining blocked for long periods without being utilized.

To this end, having a well-defined permitting strategy and a technically advanced project can prove decisive.

The importance of coordinating the tender and the administrative permitting process

Obtaining a good score in the tender constitutes only one part of the process.

In parallel, the developer must move forward with obtaining the urban planning, environmental, and sector-specific authorizations required to develop the infrastructure.

An urban planning incompatibility, an undetected environmental impact, or delays in obtaining permits can compromise project timelines and jeopardize both the allocated capacity and the associated financial guarantees.

Therefore, the preparation of the tender and the permitting strategy must be approached in a coordinated manner from the very beginning.

How can we help you, EHS Techniques?

At EHS Techniques, we collaborate with developers, investment funds, and engineering firms on data center projects throughout the country, providing the necessary technical and environmental support to navigate both demand tenders and the administrative permitting process.

Our work focuses on reducing project uncertainty from the earliest stages of development and providing the necessary technical documentation to support decision-making.

✔️Calculation and justification of greenhouse gas emissions

We prepare studies that quantify and justify avoided emissions using technically robust methodologies, providing the necessary documentary support to substantiate the highest-weighted criterion in demand tenders.

✔️Comprehensive permitting strategy

We analyze the urban planning and territorial feasibility of each site, identify the applicable administrative procedures, and design a permitting strategy aimed at minimizing risks and optimizing timelines.

✔️Early identification of environmental constraints

We evaluate in advance potential constraints that could affect the setup of the data center, such as impacts on protected areas, biodiversity, water resources, flooding risks, or other environmental limitations that could compromise the project’s development.

✔️Technical reports for decision-making

We prepare clear, structured documentation designed to facilitate decision-making for developers and development teams, allowing them to assess the technical and environmental feasibility of each site before making significant investments.

Preparing the project from the very beginning makes all the difference.

In a scenario where electrical capacity is an increasingly limited resource, a project’s competitiveness begins long before submitting the access request.

The quality of the technical documentation, the correct justification of avoided greenhouse gas emissions, the solidity of the planned investment, and the degree of administrative maturity are factors that can prove decisive in securing capacity and executing the project within the scheduled timelines.

At EHS Techniques, we help our clients build this strategy from the earliest stages of development, integrating the necessary environmental, urban planning, and technical aspects to increase the viability of each project and tackle demand tenders with greater guarantees.

Are you preparing a new data center or analyzing potential locations?

Our team can support you from the pre-feasibility and permitting studies to the preparation of the necessary technical documentation to compete in demand tenders, developing a solid, viable project that aligns with the Administration’s requirements.

Let’s talk about your project—contact us today.