Summary As proposed, CADA would task the European Commission with monitoring the EU's compute capacity gap, including identifying "underserved areas" in cooperation with Member States. Article 15(1)(c) refers to the size of the capacity gap "and underserved areas that could be identified by the Commission, in cooperation with the Member States, and subsequently used as acceleration zones for the deployment of data centre capacity." The aim is to steer infrastructure toward regions where capacity is lacking. CADA is a proposal and not yet in force, so this is what would apply if adopted.

Detail

CADA would establish a framework to address the EU's shortage of computing capacity and its geographical imbalance. One strand is identifying under-supplied regions and channelling deployment toward them. The relevant monitoring and designation duties sit in Title III of the proposal.

Monitoring the capacity gap and identifying underserved areas

The basis for identifying underserved areas is the Commission's monitoring duty. Article 15 of the CADA proposal would establish a mechanism for the Commission to monitor progress toward the objectives of Decision (EU) 2022/2481, specifically on compute capacity.

Under Article 15(1), the Commission "shall identify and monitor":

  1. the compute capacity available in the Union, including edge computing capacity (Article 15(1)(a));
  2. the volume of demand for data centre capacity (Article 15(1)(b));
  3. the size of the capacity gap and underserved areas that could be identified by the Commission, in cooperation with the Member States, and subsequently used as acceleration zones for the deployment of data centre capacity (Article 15(1)(c)).

As proposed, this links data-driven monitoring to infrastructure planning. Identifying "underserved areas" would not be left to the market alone; it is framed as a collaborative exercise between the Commission and Member States, aimed at producing a clearer picture of where capacity falls short.

From identification to use as acceleration zones

Article 15(1)(c) expressly contemplates that underserved areas could be "subsequently used as acceleration zones for the deployment of data centre capacity." The acceleration-zone concept itself is set out in Article 10.

Article 10(1) requires a Member State, where data centre capacity is being deployed in its territory, to designate at least one data centre acceleration zone. When designating, Member States must consider several aspects, including the location and dimension of the site, available and future power grid and network connectivity capacity, and the ability to function sustainably (Article 10(1)(a)–(h)).

The connection between the two articles is that an area identified as underserved would serve as an input to designation decisions. The proposal does not, however, automatically convert an underserved area into a zone: designation remains a Member State act under Article 10.

Strategic projects and compute shortages

The proposal reinforces this geographic dimension through "data centre strategic projects". Article 14 would allow the Commission, by decision, to designate certain data centre projects as strategic projects where they fulfil at least two of the listed criteria. One of those, Article 14(1)(e), is that the project "addresses a major shortage of compute capacity in an area identified as having such a shortage under Article 15 and contributes significantly to the growth, development and promotion of the local economy."

This creates a feedback loop, as proposed:

  1. The Commission identifies an underserved area under Article 15(1)(c).
  2. A Member State may designate that area as an acceleration zone under Article 10.
  3. A project in such a zone that addresses the identified shortage may, if it also meets at least one further criterion, fall within the strategic-project criteria under Article 14.
  4. Data centre projects deployed in acceleration zones are themselves treated as strategic projects within the meaning of Article 14 of the proposed Regulation on speeding-up environmental assessments and would benefit from that Regulation's toolbox (Article 13(1)), supporting faster deployment.

Role of national strategies

Member States would also adopt national cloud and AI strategies under Article 7. These must include, among other things, measures to support the deployment of data centre capacity, "with a particular focus on high-value data centres delivering significant economic and societal benefits while adhering to high environmental and energy-efficiency standards" (Article 7(2)(d)). The Commission's identification of underserved areas would provide an evidence base to help align those national strategies with Union-level data on capacity gaps.

What this means for you

For public-sector procurement officers and policy makers, the identification and use of underserved areas has practical implications.

  • Prioritising local infrastructure. When planning cloud procurements or digital-infrastructure investment, consult the Commission's monitoring outputs on capacity gaps. Supporting providers with infrastructure in designated acceleration zones or underserved areas can advance the goal of better-distributed capacity.
  • Streamlined permitting. If your authority is involved in land use or permitting, note that projects in acceleration zones benefit from accelerated procedures — Article 13(5) provides that the permit-granting procedure for data centre projects in acceleration zones shall not exceed 12 months from a comprehensive application.
  • Strategic-project eligibility. If you are considering co-investing with or partnering with operators, check whether the proposed location aligns with identified underserved areas, as that can be relevant to the Article 14(1)(e) strategic-project criterion.
  • Resilience and sovereignty. CADA's sovereignty framework (Title IV) would have public bodies procure cloud services meeting appropriate Union assurance levels. Supporting infrastructure in underserved EU areas can contribute to a more diversified and resilient supply.

Common misconceptions

  • Misconception: Underserved areas are automatically designated as acceleration zones.
    • Reality: Article 15 supports identifying underserved areas, but designation of an acceleration zone is a Member State act under Article 10. Identification informs designation; it does not replace it.
  • Misconception: Only rural areas are "underserved".
    • Reality: The concept concerns a gap between supply and demand for compute capacity, which can arise in various settings, not only geographically remote regions.
  • Misconception: The Commission dictates exactly where data centres must be built.
    • Reality: As proposed, the Commission identifies gaps and monitors progress, while designation of zones and actual deployment rest primarily with Member States and operators.
  • Misconception: Strategic projects automatically receive EU funding or state aid.
    • Reality: The proposal does not itself grant funding or state aid to strategic projects; any measure that constitutes State aid would have to comply with the applicable State aid rules. The strategic-project route is principally about designation and the associated streamlined treatment.

Official sources

Related

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