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Aragon Bets on $40 Billion Amazon Buildout as Data-Center Permits Draw Fire

Spain’s Aragon region is courting a wave of data-center investment with tax breaks and expedited approvals, led by Amazon’s nearly $40 billion commitment. Residents and farmers warn the projects could strain scarce water and reshape rural communities, while the regional government is betting they will bring jobs and economic growth.

Aragon Bets on $40 Billion Amazon Buildout as Data-Center Permits Draw Fire
ARAGON, Spain — A nearly $40 billion Amazon Web Services buildout is at the center of a data-center rush in northeastern Spain, where regional officials are offering incentives and fast-tracked permits in hopes of attracting investment tied to artificial intelligence and cloud computing. Official documents identify 27 planned data-center projects across Aragon, together covering about seven square miles. Amazon’s plans include 30 buildings, and the company says the completed centers will support 6,200 permanent jobs. Microsoft, Blackstone and Spanish firms are also pursuing projects in the region. The government’s pitch is that the facilities can help position Aragon as a hub for a growing industry. Eva Valle, the regional government’s economic counsellor, said it is difficult to predict all the businesses that may develop around the new economy, but said, “they are coming.” That growth strategy has brought a backlash from residents who say they had little say in projects planned near their homes and farmland. Under the accelerated approval process, data centers receive a special status that can allow land expropriation, remove local mayors’ veto powers and limit public objections to 23 working days. The regional government opened the objection period for a recent Amazon project over the Christmas holiday; opponents said the timing could reduce scrutiny, while officials denied that was the intent. In Botorrita, resident Silvia Baselga said her family first became aware of a proposed complex when survey markers appeared near their garden wall. Planning documents later showed the project boundary would be about 80 meters from the home and that the complex would be larger than the village. Baselga fears the facility’s security lighting and noise will overwhelm the area’s quiet, rural character. Water is another concern in a region repeatedly hit by drought. Farmer Julio Enfedaque said irrigation allocations were cut by two-thirds after months with little rain. He worries that expanding data centers will intensify competition for water, even if operators say they will not take supplies needed by farms. Enfedaque has advised younger relatives to consider work outside agriculture. Amazon says its facilities will use water for cooling only when temperatures exceed 86 degrees Fahrenheit and that it is investing in local water infrastructure and helping farmers improve efficiency. David Blázquez, the company’s head of public policy for Spain and Portugal, said Amazon aims to use as little water as possible and support communities where it operates. The company does not disclose water use at individual sites, he said. Regional figures show Amazon’s three existing, smaller data centers used 68 million liters of water—48% more than the company had initially indicated to officials. The projects also raise questions about electricity demand. Companies say they will rely mainly on renewable power, while keeping diesel generators on site. Amazon says it has secured 100 renewable-energy projects in Spain, including 17 in Aragon. But conservationists warn that new wind and solar infrastructure can bring its own costs, particularly for wildlife. Regional environmental officials have identified a high collision risk to protected birds of prey at wind farms, and local wildlife officers and ornithologists report finding dead birds and bats. A legal challenge backed by environmental groups is contesting the regional government’s fast-track approvals for Amazon’s expansion. Activists say the projects’ demands on water and electricity and their effects on other industries and the environment outweigh the promised gains. Amazon says it works with energy companies that comply with environmental rules and recognizes concerns about damage to habitats. The dispute has spilled into Zaragoza, where hundreds of demonstrators protested a proposed data center near a forest at the city’s edge. Regional authorities see the investment as a chance to attract businesses and jobs; opponents say the speed and scale of development risk shifting costs onto residents, farmers and the natural landscape.

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