Solaria has led the increases of the Ibex 35 this Tuesday with a rise close to 10%, accompanied by Merlin Properties, which has also ranked among the most bullish stocks of the day with an increase of more than 2%.
In detail, the renewable energy company Solaria has become the most dynamic stock of the day, climbing 9.61% at market close, to 15.565 euros per share.
For its part, the socimi Merlin Properties has accompanied these advances with an increase of 2.22%, to 11.52 euros per share, reinforcing investor interest in the business linked to digital infrastructures.
The origin of these movements in the stock market lies in the new proposal for a Royal Decree to regulate data centers that the Government has sent to the Council of State. With this updated text, the Executive lowers some of the requirements outlined in the initial draft in order to define a regulatory framework that organizes the growth of the sector without hindering the arrival of capital.
The modification occurs after the public information phase —in which more than 600 objections were registered— and after the criticisms made by both the data center industry and the energy sector. Additionally, the National Commission of Markets and Competition (CNMC) had defended relaxing the obligation for these facilities to consume 80% renewable energy at all hours of the day from exclusively newly constructed green plants.
Given the risk of hindering strategic projects and investments, the Government has decided to adjust its approach with the intention of approving it before the general elections on November 29. Thus, sources from the Ministry for Ecological Transition and the Demographic Challenge have indicated that the new text "maintains the ambition and key elements of the initial proposal," while introducing "technical improvements."
Among the most relevant changes is the raising of the application threshold: the regulation ceases to apply to installations from 1 megawatt (MW) of access power and begins to apply from 10 MW, understanding that these are the ones that have a "noticeable impact on the available grid capacity and on water and land resources."
Furthermore, instead of requiring from the beginning an 80% renewable energy consumption, the draft incorporates a transitional period that sets a renewable coverage of 60% during peak hours until the end of 2028, a percentage that will rise to 70% in 2029 and will reach 80% starting in 2032.
In parallel, the new wording extends the period for renewable plants to be eligible from 18 to 36 months and excludes solar energy from the age limitation; while eliminating the additionality requirement, which obliged to back each additional megawatt (MW) of demand in data centers with 1 MW of new renewable capacity.
UPWARD POTENTIAL OF UP TO 40%
In this scenario, the investment firm Jefferies has highlighted that these adjustments reduce the execution and short-term electricity supply risks for Merlin Properties as it expands its data center platform in Spain.
The entity sees "less relevance" for the socimi in the increase of the application threshold of the royal decree from 1 to 10 megawatts, as the company develops projects with powers above that level.
Likewise, it has reminded that the revised regulation is still in draft phase and that the Executive plans to approve it before the elections on November 29.
Overall, Jefferies has reiterated its "buy" recommendation on Merlin Properties, with a target price of 16 euros per share, which implies an upside potential of 38.8% compared to the close of this Tuesday.
SHORT POSITIONS PUSH SOLARIA
In parallel, from the investment firm XTB they have pointed out that the strong demand for Solaria is explained by the high presence of short positions in the stock, which causes that "any good news, like today's, translates into strong increases" due to the accelerated closing of these bearish bets.
According to data from the National Securities Market Commission (CNMV) consulted by Europa Press, several large institutions maintain short positions in Solaria that account for 7.6% of the floating capital. Among them, recent positions of JPMorgan Asset Management (1.82%), AHL Partners (1%), or Marchant (1%) stand out.
"This phenomenon is known as a short squeeze and occurs when the stock price rises abruptly and bearish investors are forced to buy back shares to close their positions and limit losses. These purchases act as a kind of multiplier effect that accelerates the rises of Solaria, creating a chain effect," they explained from Xtb.
After the close of this Tuesday, Merlin has a stock market revaluation of 2.49% so far this year, while Solaria reduces its declines to 14.5% in 2026.