Spain’s bid to host a flagship European artificial intelligence gigafactory in Móra la Nova, Tarragona, is entering a critical phase. The proposed dual-site project would place its basic facility in Catalonia, with complementary infrastructure in San Fernando de Henares, Madrid. Its sponsors must show that the project can meet demanding environmental standards and operate efficiently through the Ribera d’Ebre’s punishing summer heat.
The European Commission has extended the deadline for applications under the EuroHPC structure from 12 November to 3 December 2026. The change, reported on 22 October after the call received no proposals by the original date, gives Spain’s consortium more time to finalize its bid. The competition concerns support for up to seven large-scale AI gigafactories. Spain and Portugal are pursuing projects in the same large-scale tender category, known as Lot 2.
Environmental Demands
Brussels is not accepting vague promises. Each proposal must include a detailed annual plan with measurable targets for energy and water use. It must also set out emissions targets. The evaluation will focus on Power Usage Effectiveness (PUE), which compares a facility’s total energy consumption with the energy used by its computing equipment, and Water Usage Effectiveness (WUE), which measures water consumption. The project’s stated assessment criteria give top marks to facilities with a PUE of 1.10 or lower and a WUE of 0.20 or less. Full renewable-energy coverage matched to hourly demand is also required for the highest rating.
The Móra la Nova team is proposing closed-loop cooling and strict water limits. It also plans renewable-energy sourcing and acoustic insulation to reduce evaporation and noise for nearby residents. The bid must set out how those measures would work through droughts and heatwaves. It must also account for grid restrictions, conditions that have shaped debate over energy-intensive data-centre projects elsewhere in Spain, including Aragón. The proposal is part of a wider infrastructure contest where sustainability goes alongside the ability to secure power and install computing hardware at scale.
Heat as a Technical Hurdle
The region’s climate is a central concern. The site must demonstrate not just annual averages but also how cooling-energy demand changes during the hottest months. Seasonal PUE calculations for summer and winter are intended to prevent strong annual figures from masking weaker summer performance. The European Code of Conduct for data centres, cited in the project documentation, recommends low ambient temperatures for optimal efficiency, conditions Móra la Nova cannot count on. The municipality recorded temperatures of 44.1°C in July, underscoring the operational challenge. The project’s case will depend on advanced cooling technology and careful workload management, with low water consumption also impressive.
The tender’s reported technical benchmark calls for at least 40,000 AI accelerators in the first phase, with electrical capacity of 20 to 50 megawatts initially and a minimum installation capacity of 150 MW over time. Those requirements make the grid connection and a credible expansion plan basic to the bid, alongside its environmental performance.
Power Supply and Growth
The project’s own planning figures describe a first phase requiring about 54 MW, with a further 75 MW being pursued for expansion. The original plan also envisages a maximum of 55 MW at the outset and capacity rising to 150 MW by 2029 to 2030. These are project-specific planning figures against the tender’s broader benchmarks. An INCASÒL protocol has identified the need for at least 150 MW and explored options including solar parks and battery storage. Renewable supply contracts are also among the options being explored. The development is still at the candidacy stage, so its construction and expansion depend on European selection and financing, as well as power-access arrangements.
The Spanish proposal is associated with an estimated initial investment of €1.5 billion, potentially reaching €5 billion over four or five years as facilities in Madrid are included. Móra la Nova mayor Jesús Álvarez has said that, if the bid is selected, contracts for the first construction phase could be signed in June. Local authorities expect a European decision several months after submission, with the decision anticipated the following spring. The proposed facility could occupy about four hectares at the Molló industrial estate and potentially begin initial operations by the end of 2028, subject to selection and construction.
The consortium has been reported as involving ACS, Telefónica and Banco Santander, alongside public-sector participation. Its plans also include a public investment figure of €720 million, with private capital expected to help fund a broader project estimated to mobilize up to €5 billion. Local authorities are presenting the development as a potential source of technology-related employment and vocational training in the Ribera d’Ebre. Construction and operation would require skilled workers in areas such as electrical systems and cooling, along with civil works and maintenance.
Local Acceptance and Transparency
The Ribera d’Ebre has long hosted energy-intensive infrastructure and is debating new wind and solar projects. Local acceptance of the gigafactory is likely to depend on how the project addresses resource use and noise. Water supply and renewable-energy sourcing will matter too. The proposal’s closed-loop cooling and acoustic-insulation plans are intended to address some of those concerns, while renewable contracts and measures to reuse waste heat could also shape its local impact.
Spain’s proposal remains in competition and has not been awarded. The European Commission’s revised deadline is 3 December 2026, after which the bid will be assessed alongside competing applications. The decision will turn on more than sustainability scores: the project must demonstrate a credible route to the required computing capacity and grid power. It must also show how it plans to expand. For the Ebro Valley, the outcome could influence both the region’s economic prospects and the environmental footprint of its next major infrastructure project.
