Summary Under the proposed Cloud and AI Development Act (CADA), a Member State that is deploying data centre capacity would have to designate at least one data centre acceleration zone within its territory, by a deadline set at the Regulation's entry into force plus six months (Article 10(1)). When designating a zone, the Member State would have to consider eight listed aspects — covering site, power, connectivity, copper phase-out, waste-heat reuse, permitting, brownfield preference and sustainability. Where appropriate, it would also analyse the zone's energy needs, feed that into grid operators' network development plans, weave the zone into spatial plans, and coordinate the relevant authorities and network operators.

Detail

CADA proposes a structured framework to accelerate the deployment of data centres across the EU, addressing bottlenecks in permitting, energy access and spatial planning. Central to it is the "data centre acceleration zone" — a geographic area where building, expanding and modernising data centres would be facilitated through coordinated infrastructure planning, an aggregated baseline permit, and a streamlined permitting timeline.

For public authorities, understanding the designation obligation matters both for compliance and for ensuring local digital infrastructure can support the EU's wider AI and cloud objectives. Note that CADA is a proposal and not yet in force; the points below describe what the text would require.

The proposed obligation: Article 10(1)

The legal basis is Article 10(1) of the CADA proposal. As proposed, it provides:

"Where data centre capacity is being deployed within the territory of a Member State, that Member State shall designate at least one data centre acceleration zone ('acceleration zone') within its territory by [P.O. insert the date of entry into force of this Regulation plus 6 months]."

So designation would not be optional for a Member State that is actively deploying data centre capacity, and the deadline would be six months after entry into force. (The bracketed "[P.O. insert the date ...]" is a placeholder in the draft; the exact date would be fixed when the Regulation is adopted.)

The same paragraph then says Member States "shall consider" the following aspects when designating an acceleration zone:

  1. Site location and dimension — the location and dimension of the site or area, and the minimum and maximum size of facilities that could be built there.
  2. Power grid capacity — available and future power grid capacity, and the possibility and conditions for on-site storage and clean energy generation.
  3. Network connectivity — available and future network connectivity capacity.
  4. Legacy copper networks — the zone's capacity to support phasing out legacy copper networks.
  5. Waste-heat reuse — available and future facilities that can reuse data centre waste heat.
  6. Permitting acceleration — all measures taken to accelerate granting the necessary permits for constructing and operating data centres within the zone.
  7. Brownfield preference — the preference for reusing brownfield sites over using greenfield sites.
  8. Sustainability — the ability of the site to function sustainably, particularly as regards preventing or minimising environmental impacts and supporting the reduction of carbon emissions and its climate resilience.

These are aspects the Member State "shall consider," rather than pass/fail tests each site must clear; the proposal leaves authorities discretion in how they weigh them.

Practical steps for designation

Designation is a multi-stakeholder exercise. The following workflow is drawn from Article 10 and the related provisions of Title III.

1. Site selection and assessment of the aspects

Identify candidate sites against the aspects in Article 10(1). The text expresses a preference for brownfield over greenfield sites, and asks authorities to weigh power, connectivity, waste-heat reuse potential and sustainability.

2. Energy analysis (where appropriate)

Article 10(2) opens with "where appropriate to facilitate the development of acceleration zones." On that basis, Article 10(2)(a) would have Member States "conduct, and review at least every three years, a comprehensive analysis of the energy needs and their respective impacts on greenhouse gas emissions, of current and future acceleration zones," identifying the energy infrastructure capacity needed for the proper functioning and development of the projects there. The analysis would be conducted at least when the zone is designated, and reviewed at least every three years.

3. Coordination with grid operators

Under Article 10(2)(b), Member States would ensure that the network development plans prepared by transmission system operators (under Article 51 of Directive (EU) 2019/944) and distribution system operators (under Article 32 of that Directive) "take due account of" the energy analysis, "considering the potential of anticipatory investments to accommodate future system needs." The aim is to give grid operators early visibility of demand so capacity can be planned ahead rather than retrofitted.

4. Spatial planning and stakeholder coordination

Under Article 10(3), national, regional and local authorities responsible for spatial and development plans "shall consider including, in those plans, provisions for the development of data centre projects deployed in acceleration zones, and of the necessary infrastructure," and Member States would ensure relevant spatial planning data are available to operators. Where such plans are subject to assessment under the Strategic Environmental Assessment Directive (2001/42/EC) and Article 6 of the Habitats Directive (92/43/EEC), those assessments would be combined; where applicable, the combined assessment would also address impacts on water bodies under the Water Framework Directive (2000/60/EC).

Article 10(4) would require Member States, when designating zones, to ensure the involvement of and coordination among all relevant national, regional and local authorities and entities, including electronic-communications operators (as defined in Directive (EU) 2018/1972), transmission system operators and distribution system operators (as defined in Directive (EU) 2019/944).

5. The aggregated baseline permit

Designation is closely tied to permitting. Under Article 13(2), for each designated acceleration zone the Member State would prepare and issue an "aggregated baseline permit" covering the permits and administrative authorisations required for data centre projects in the zone, excluding installation-specific permits. Article 13(5) sets a permit-granting time limit of no more than 12 months from a comprehensive application. Designating a zone therefore commits the authority to this front-loaded permitting work.

What this means for you

For public-sector procurement officers and local authorities, designation shifts the posture from reactive permitting to proactive infrastructure strategy.

  • Proactive planning: You would be creating a designated area with pre-assessed infrastructure and a streamlined permitting route, which requires early engagement with energy and network operators.
  • Sustainability built in: The brownfield preference and the sustainability and waste-heat aspects mean site selection should include rigorous environmental assessment.
  • Inter-agency collaboration: Article 10(4) effectively requires coordination across TSOs, DSOs, electronic-communications operators and planning bodies; a cross-functional team early on is advisable.
  • Timeline pressure: The six-month window from entry into force is tight, so preliminary assessments and consultations should start early.
  • Procurement angle: Separately, Article 32 introduces "Union added value" criteria in public procurement of cloud and AI services — relevant context, though distinct from the zone-designation duty.

Common misconceptions

Misconception 1: Designation is optional for every Member State.

  • Reality: As proposed, Article 10(1) makes designation mandatory for any Member State where data centre capacity is being deployed — at least one zone would be required.

Misconception 2: Acceleration zones are only about fast-tracking permits.

  • Reality: The aspects in Article 10(1) put substantial weight on energy planning, sustainability and spatial integration, not just administrative speed.

Misconception 3: Grid capacity is separate from zone designation.

  • Reality: Article 10(2) links the zone's energy analysis to grid operators' network development plans, though that paragraph applies "where appropriate to facilitate the development of acceleration zones."

Misconception 4: Brownfield use is mandatory.

  • Reality: Article 10(1)(g) states a "preference for reusing brownfield sites over using greenfield sites" — a preference among the aspects to consider, not an absolute ban on greenfield development.

Misconception 5: The energy analysis is a one-off.

  • Reality: Where Article 10(2)(a) applies, the analysis would be reviewed "at least every three years."

Related

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