The Spanish government has commenced issuing directives to state-controlled entities to blacklist U.S. data analytics firm Palantir Technologies.

The decision stems directly from growing official concern over the potential misuse of classified information linked to national security.

Moncloa has instructed companies overseen by the State Society of Industrial Participations (SEPI) to halt future contracting with the Miami-based artificial intelligence and data analysis multinational.

The directive impacts major entities responsible for high-level state communications and military intelligence, including Telefónica, Indra, and the military shipbuilder Navantia.

National Sovereignty Concerns

According to corporate board sources, the prime minister's office communicated the ban to listed companies to prevent any contracts that could jeopardize Spanish national sovereignty.

The political intervention has already disrupted advanced procurement pipelines, including a near-finalized project with Navantia and a negotiated collaboration agreement with the Guardia Civil that was vetoed by Interior Minister Fernando Grande-Marlaska.

The restrictions mirror recent regulatory and political pushback against Palantir elsewhere in Europe.

Former French Prime Minister Sébastien Lecornu announced on June 10 that France would cease working with the firm, while German cyberdefense authorities and secret services have increasingly favored European alternatives like the French competitor ChaosVision.

Defense Procurement Deadlock

Despite the broader public and private sector blacklist, Palantir continues to maintain active contracts with the Spanish Ministry of Defense.

The firm holds a €16.5 million contract signed in 2023 with the Armed Forces Intelligence Center (CIFAS), which is scheduled to expire this upcoming November.

Military leadership, including the Chiefs of Staff of the Army and Navy, has lobbied Defense Minister Margarita Robles to renew the contract, citing the platform's operational superiority.

However, Moncloa has yet to make an official determination regarding the defense contract extension as the expiration date approaches.

Geopolitical Friction and Domestic Alternatives

The domestic blacklist coincides with sharp geopolitical tension between Spanish Prime Minister Pedro Sánchez and the incoming U.S. administration.

Palantir founders Peter Thiel and CEO Alex Karp have deep financial and political ties to Donald Trump, whose political platform conflicts directly with the diplomatic positions maintained by Madrid.

In response to the perceived risks of relying on foreign defense software, Spain is accelerating funding for domestic technology platforms to preserve national data sovereignty.

The executive recently approved an €115 million investment in the Catalan firm Openchip, part of a broader €5 billion state-backed gigafactory project, financed largely by SEPI Digital.