Yes. As proposed in the Cloud and AI Development Act (CADA), data centre acceleration zones can include on-site clean energy generation and storage. Article 10(1)(b) requires Member States to consider, when designating a zone, "the available and future power grid capacity and the possibility and conditions for on-site storage and clean energy generation." On-site generation and storage are squarely within the factors that shape a zone.

Detail

The proposed CADA introduces data centre acceleration zones to streamline deployment of computing infrastructure across the EU, while pushing operators to run sustainably and efficiently within the energy system.

Article 10 sets out what Member States must weigh when designating these zones. Among the aspects to be considered, Article 10(1)(b) lists:

"the available and future power grid capacity and the possibility and conditions for on-site storage and clean energy generation;"

Note the precise legal force: Article 10(1) lists aspects Member States shall consider when designating zones — it is a mandatory consideration in the designation process, not a guarantee that every zone or every project must include on-site energy. The aim is for zones to be located and shaped so that data centres can draw on clean energy and storage directly where feasible, supporting the EU's broader energy-efficiency and decarbonisation goals.

Integrating on-site generation (such as solar or wind) and storage (such as batteries) can help data centres:

  1. Reduce grid strain by self-consuming energy and shaving peak demand on the local grid — important given the high loads of AI and cloud workloads.
  2. Enhance resilience by providing local power during grid disturbances for critical services.
  3. Lower carbon footprint by using clean energy closer to the source.

Article 10(2)(a) reinforces the energy focus: where appropriate to facilitate the development of zones, Member States shall conduct — and review at least every three years — a comprehensive analysis of the energy needs of current and future acceleration zones and their impact on greenhouse gas emissions, identifying the energy-infrastructure capacity required for data centre projects in those zones. This analysis must be done at least when designating the zone.

On-site generation and storage also connect to grid planning: Article 10(2)(b) provides that Member States shall ensure transmission and distribution network development plans (under Directive (EU) 2019/944) take due account of that energy-needs analysis, considering anticipatory investment to accommodate future needs. Beyond what Article 10 itself states, broader policy concepts sometimes attributed to CADA — such as specific "flexible connection agreements" or mandated power purchase agreements — are not set out in the operative text of Article 10 and should not be assumed.

What this means for you

For CTOs, architects and SMEs evaluating deployment or providers, the on-site-energy dimension of zones has practical implications:

  1. Site selection. Prefer zones whose designation and energy-needs analysis (Article 10(2)(a)) reflect strong grid capacity and realistic conditions for on-site generation and storage. This can lower long-term operating cost and grid-volatility risk.
  2. Design. Build modular energy systems so on-site generation (e.g. rooftop or adjacent solar) and storage (e.g. battery banks) can be integrated as conditions in the zone allow.
  3. Grid interaction. Plan how the facility interacts with the grid — storage can support demand response and load shifting, subject to applicable national rules.
  4. Compliance. Align energy plans with the specific conditions the Member State sets for the zone (the "conditions for on-site storage and clean energy generation" in Article 10(1)(b)) and with environmental and grid-connection requirements. Engage local authorities early.
  5. Investment. Factor in the capex for on-site energy; weigh it against long-term energy savings and any available incentives.

Common misconceptions

Misconception 1: On-site generation must meet 100% of the data centre's needs. Reality: CADA does not mandate energy self-sufficiency. Article 10(1)(b) concerns the "possibility and conditions" for on-site generation and storage as a designation consideration. Facilities would still connect to the grid.

Misconception 2: Acceleration zones are only for large hyperscalers. Reality: The proposal aims to support the wider EU cloud and AI ecosystem, and Article 11(2) requires that resource allocation within zones be on fair, reasonable and non-discriminatory terms, without speculative reservation or foreclosure — relevant to smaller operators' access.

Misconception 3: On-site storage is only for backup power. Reality: Beyond backup, storage supports load shifting, frequency regulation and integration of variable renewables — useful for both the facility and the local grid.

Misconception 4: CADA overrides national energy laws. Reality: CADA would complement, not replace, existing EU and national energy law; operators must still comply with applicable energy legislation. The energy-needs analysis under Article 10(2) is meant to feed into existing network-planning processes under Directive (EU) 2019/944.

Related

This is general information about a draft EU regulation, not legal advice.