Summary As proposed, CADA does not require Member States to invent a new "highest national significance" status for data centre projects. Instead, Article 13(5) provides that, where such a status already exists in national law, data centre projects in acceleration zones shall be allocated the highest national significance possible and be treated as such in permit-granting. The same provision sets a separate, unconditional ceiling: the permit-granting procedure for projects in acceleration zones shall not exceed 12 months from a comprehensive application.

Detail

CADA (COM(2026) 502 final, a proposal) aims to harmonise and accelerate the deployment of data centre capacity across the EU. Two pillars carry this in Title III: "data centre acceleration zones" (Article 10) and the streamlined permitting within them (Article 13).

As proposed, Article 13(5) addresses how applications in acceleration zones are handled. It requires Member States to ensure that administrative applications related to planning, construction and operation of data centres deployed in acceleration zones are processed in an efficient, transparent and timely manner, and that the permit-granting procedure does not exceed 12 months from the moment a comprehensive application has been submitted (without prejudice to any shorter national time limits).

On national status, Article 13(5) then provides, verbatim:

"Where such a status exists in national law, data centre projects shall be allocated the status of highest national significance possible and be treated as such in permit-granting processes. This paragraph shall apply only where such status exists in national law and shall not create an obligation for Member States to introduce such status."

This operates on two principles:

  1. Conditional application. The duty to grant "highest national significance" status applies only where a Member State's law already provides such a status (or equivalent high-priority classification) for infrastructure projects.
  2. No creation mandate. The provision expressly "shall not create an obligation for Member States to introduce such status." The EU legislature, as proposed, would not force Member States to amend national planning law to invent a new category.

Where a Member State does have such a status, data centre projects in designated acceleration zones must be allocated it, triggering the procedural advantages that flow from it under national law — for example expedited review, shorter appeal windows, or prioritised handling. These national mechanisms help make the 12-month ceiling achievable. Where a Member State lacks such a status, it need not create one, but it must still meet the 12-month limit through other efficient measures within its existing framework.

This approach respects subsidiarity and the diversity of national planning systems, while still driving the harmonised outcome of faster deployment: it targets the result (accelerated permitting), not a specific legal tool.

Note that this status provision is distinct from CADA's "strategic project" concept. As proposed, Article 13(1) provides that data centre projects in acceleration zones shall be considered strategic projects within the meaning of Article 14 of the upcoming Regulation on speeding-up environmental assessments (Regulation (EU) 2026/XXX) — which is separate from designation as a CADA "strategic project" under Article 14 of CADA itself.

What this means for you

For in-house counsel and compliance officers, the conditional nature of Article 13(5) demands a country-by-country read of the national legal landscape.

  • Assess national frameworks. Determine whether the target Member State already has a "highest national significance" status or equivalent for infrastructure — reviewing national planning, infrastructure or environmental law.
  • Leverage existing status. Where it exists, have your application expressly request and justify the allocation, highlighting the project's location in a designated acceleration zone and its contribution to EU objectives.
  • Plan to the 12-month ceiling. As proposed, the 12-month limit applies regardless of status. Structure timelines, resourcing and authority engagement to meet it; where no high-significance status exists, work with local counsel on other national mechanisms to streamline the process.
  • Track transposition. Watch how Member States interpret and apply "highest national significance" as they implement CADA; some may align existing statuses more closely with the proposal's intent even without a duty to create one.

Common misconceptions

  • Misconception: "CADA forces every EU country to create a 'highest national significance' status for data centres."
    • Reality: As proposed, Article 13(5) explicitly does not create an obligation to introduce such a status; it applies only where the status already exists in national law.
  • Misconception: "If a country lacks this status, my permit can take longer than 12 months."
    • Reality: The 12-month permit-granting limit applies regardless of whether the status exists. The status is a tool to help meet the deadline, not a precondition for it.
  • Misconception: "All data centre projects automatically get highest national significance status."
    • Reality: As proposed, the provision applies to projects deployed in designated acceleration zones (Article 10); projects outside those zones do not benefit from it.

Related

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