Spain just told Palantir to pack its bags. Or at least, to stop unpacking new ones.
On July 1, the Spanish government issued a directive through SEPI, the state holding company that oversees the country’s publicly owned enterprises, instructing its portfolio companies to avoid entering new contracts with Palantir Technologies. The reason: concerns over classified national security information and what officials see as risks to national sovereignty.
The directive targets firms operating in defense, communications, and infrastructure. We’re talking about heavyweights like Telefónica, defense contractor Indra, and naval shipbuilder Navantia.
What’s actually happening
Here’s the thing: this isn’t technically a ban. It’s not legislation. It’s not even a formal regulation.
It’s more like a strongly worded internal memo with teeth. SEPI is directing the companies it controls to exercise “vigilance” regarding sensitive data, which in practice means no new Palantir contracts.
That distinction matters. Existing contracts remain intact, at least for now. Palantir’s most notable Spanish deal, a contract worth approximately €16.5 million with CIFAS (the Centro de Inteligencia de las Fuerzas Armadas, Spain’s military intelligence center), runs through November 2026. So the company isn’t getting kicked out mid-project. It’s just not being invited back.
The company, co-founded by Peter Thiel and led by CEO Alex Karp, has long positioned itself as the Western world’s answer to authoritarian surveillance tech.
Hellbound and Down 