Spain Restricts Palantir Contracts Over National Security Concerns

The Government of Spain has directed state-controlled companies to cease ties and avoid signing new contracts with the U.S. data analytics firm Palantir Technologies. The directives, issued via the prime minister's office, target firms overseen by the State Society of Industrial Participations (SEPI), including Indra, Navantia, and Telefónica. Officials cite concerns that sensitive national security data could be exposed to foreign access through the U.S. CLOUD Act.

The restrictions have already disrupted a project with Navantia and a collaboration with the Guardia Civil, which was vetoed by Interior Minister Fernando Grande-Marlaska. Despite these measures, the Spanish military remains exempt; the Ministry of Defence continues to discuss renewing a €16.5 million intelligence contract with the Armed Forces Intelligence Centre (CIFAS) expiring in November. This exception has drawn demands for explanation from coalition parties Sumar and Junts.

To reduce dependency on U.S. personnel, Spain is investing €115 million in domestic alternative Openchip. The government maintained that Palantir does not have access to data on Spanish citizens. This shift aligns with a broader European trend of restricting the firm; France recently terminated its domestic intelligence agency's contract to replace Palantir, and London Mayor Sadiq Khan blocked a £50 million deal with the Metropolitan Police.