Aysu Bicer
02 July 2026•Update: 02 July 2026
The Spanish government has begun instructing state-backed companies to avoid signing new contracts with the US data analytics company Palantir because of concerns that sensitive national security information could be exposed, according to the Spanish publication El Confidencial on Wednesday.
Board members at several publicly listed companies have been told not to enter into agreements with the company that could jeopardize national sovereignty or strategic information, it said.
While Moncloa, Spain's official government website, has not announced a formal ban on Palantir, sources told El Confidencial that public and private companies controlled by SEPI, the country's sovereign wealth fund and state-owned industrial holding company, have been instructed to blacklist the firm.
Businesses operating in critical communications, defense, military technology and public infrastructure are reportedly among those most affected by the guidance.
The Defense Ministry, however, is said to be continuing discussions with Palantir on renewing and expanding existing agreements.
Palantir, the US software company co-founded by billionaire Peter Thiel, has faced criticism for its work with the Israeli military and the Trump administration's immigration enforcement policies.
In the UK, the company holds contracts to provide data analytics for the Defense Ministry and the National Health Service, but it is facing increasing pressure because of the prospect of further public sector deals.
Last month, London Mayor Sadiq Khan blocked a £50 million ($66.4 million) contract between the Metropolitan Police and Palantir, saying it represented a "clear and serious breach" of procurement rules.
France has also moved to distance itself from the company. Last month, Defense Minister Sébastien Lecornu announced that the domestic intelligence agency had decided to terminate its contract with the company.
