Summary Under the proposed Cloud and AI Development Act (CADA), Bulgaria would be required to designate one or more single information points (SIPs) to assist data centre operators with all authorisations required for projects within designated data centre acceleration zones (Article 12). These SIPs would streamline permitting by coordinating spatial planning, environmental assessments, and network connections, with the option to integrate existing infrastructure from the Gigabit Infrastructure Act (Regulation (EU) 2024/1309). Furthermore, Bulgaria would be obliged to issue an aggregated baseline permit for each acceleration zone, covering common zone-level authorisations while explicitly excluding installation-specific permits (Article 13). This framework would significantly reduce administrative timelines, capping the permit-granting procedure for individual projects at 12 months from the submission of a comprehensive application.

Detail

The proposed Cloud and AI Development Act (CADA), as set out in COM(2026) 502 final, introduces a harmonised framework designed to accelerate the deployment of data centres across the European Union. The legislation specifically targets the reduction of regulatory fragmentation and permitting delays that have historically hindered the expansion of digital infrastructure. For Bulgaria, as a Member State, this translates into specific, binding obligations regarding the establishment of data centre acceleration zones and the administrative mechanisms that support them.

The core of this administrative simplification rests on two pivotal provisions: the designation of single information points (SIPs) under Article 12 and the issuance of aggregated baseline permits under Article 13. These mechanisms work in tandem to create a "one-stop-shop" environment for operators, shifting the regulatory burden from the individual project level to the zone level wherever possible.

The Role of Single Information Points (Article 12)

Article 12 of the proposed CADA obliges Member States, including Bulgaria, to designate one or more single information points for data centre operators deploying projects within designated acceleration zones. The primary function of these SIPs is to provide comprehensive assistance throughout the entire lifecycle of the data centre project, covering all authorisations required for deployment. This assistance is not merely advisory; it involves active coordination, facilitation, monitoring, and information sharing regarding the permitting procedure.

The scope of the SIP's role is extensive. Under Article 12(2), the SIP must coordinate and facilitate procedures relating to:

  • Spatial planning and building permits.
  • Environmental assessments, conducted in accordance with the Regulation on speeding-up environmental assessments (referenced as Regulation (EU) 2026/XXX in the proposal).
  • Authorisations regarding water abstraction, wastewater discharge, and heat utilisation and recovery.
  • Compliance with applicable administrative and reporting obligations.
  • Information to the public, with the aim of increasing public acceptance of the data centre project.
  • Applications for connection to electricity, heat, or communications networks, and other relevant networks.

Crucially, Article 12(1) allows Bulgaria to integrate these new data centre SIPs with existing structures. Specifically, Member States may designate for this purpose a single information point established under Regulation (EU) 2024/1309 (the Gigabit Infrastructure Act). This provision is significant for Bulgaria, as it suggests that the administrative burden of creating entirely new bureaucratic entities can be mitigated by upgrading or integrating existing digital infrastructure SIPs. The functions, procedures, and mechanisms applicable to Gigabit SIPs, including digital access, administrative coordination, and dispute settlement, would apply mutatis mutandis to the data centre SIPs. This ensures a consistent user experience for operators who may be deploying both connectivity infrastructure and data centres.

Furthermore, Article 12(4) mandates that SIPs pay particular attention to small and medium-sized enterprises (SMEs). Bulgaria would be required to ensure that its SIPs establish dedicated channels for communication with SMEs to provide guidance and respond to queries. This is a critical provision for SMEs and smaller data centre operators who may lack the extensive legal and regulatory teams of hyperscalers, ensuring they are not disadvantaged in the accelerated permitting process. The SIP would act as a dedicated channel to guide these entities through the complexities of the acceleration zone framework.

The Aggregated Baseline Permit (Article 13)

While the SIP provides the administrative interface, Article 13 provides the regulatory mechanism for speeding up the actual granting of permits. Article 13(2) requires Bulgaria to prepare and issue an aggregated baseline permit for each designated acceleration zone. This permit authorises the deployment of data centres within that specific zone and covers the permits and administrative authorisations required for data centre projects located within the zone, with a key exception: it excludes installation-specific permits.

The logic behind the aggregated baseline permit is to front-load the generic assessments. Before issuing this permit, Bulgaria would be required to carry out all necessary procedures and assessments applicable at the level of the acceleration zone, including relevant environmental assessments and planning procedures (Article 13(3)). Once this baseline permit is in place, individual data centre projects deployed within the zone are only required to obtain additional permits for activities falling outside the scope of the aggregated baseline permit (Article 13(4)).

This mechanism dramatically reduces the time required for individual project approvals. Article 13(5) stipulates that the permit-granting procedure for data centre projects in acceleration zones shall not exceed 12 months from the moment a comprehensive application is submitted. This strict timeline applies only where the aggregated baseline permit has been issued, as the zone-level assessments are already complete. If national law provides for a status of "highest national significance," data centre projects would be treated as such, further prioritising their processing. The 12-month limit is a hard cap designed to provide certainty for investors and operators.

Interaction with Environmental Assessments and Strategic Projects

Article 13(1) explicitly links data centre projects in acceleration zones to the Regulation on speeding-up environmental assessments (referenced as Regulation (EU) 2026/XXX). These projects are considered strategic projects within the meaning of that Regulation and benefit from a dedicated toolbox designed to accelerate environmental assessments. This ensures that while speed is prioritised, high levels of protection for human health and the environment are maintained.

The aggregated baseline permit issued by Bulgaria would therefore incorporate the results of these accelerated zone-level environmental assessments, providing a robust foundation for individual project approvals. By treating the entire zone as a strategic project, the proposal ensures that the environmental impact is assessed once at the macro level, rather than repeatedly for every individual facility, provided the facility adheres to the baseline conditions.

Additionally, Article 13(3) requires that before issuing the aggregated baseline permit, Member States must carry out all necessary procedures and assessments, including any relevant environmental assessments, planning procedures and evaluations applicable at the level of the acceleration zone. Where these plans are subject to an assessment pursuant to Directive 2001/42/EC (Strategic Environmental Assessment) and Article 6 of Directive 92/43/EEC (Habitats Directive), those assessments shall be combined. This integration prevents bureaucratic duplication and ensures that the baseline permit is legally robust before individual applications are even accepted.

The "Installation-Specific" Exception

A critical nuance in Article 13(4) is the exclusion of installation-specific permits. While the baseline permit covers the general compatibility of the zone, individual projects must still obtain permits for activities falling outside the aggregated baseline. This typically includes specific structural details, unique energy connection capacities, or specialised industrial equipment that deviates from the zone's standard assumptions. However, because the general environmental and planning hurdles are cleared by the baseline permit, the scope of these additional permits is significantly narrowed, focusing only on the unique aspects of the specific installation.

What this means for you

For CTOs, architects, and SMEs evaluating the practical impact of CADA on data centre deployment in Bulgaria, the introduction of SIPs and aggregated baseline permits represents a fundamental shift in the permitting landscape.

For SMEs: The explicit requirement in Article 12(4) for SIPs to establish dedicated channels for SMEs is a protective measure. It means that when engaging with Bulgarian authorities, you should expect a more structured support system tailored to your needs. You are not expected to navigate the complex web of spatial planning, environmental, and energy permits alone. The SIP acts as a single point of contact, coordinating with various authorities on your behalf. This reduces the administrative overhead and legal costs associated with managing multiple parallel permitting processes. For smaller operators, this could be the difference between a viable project and one that is stalled by bureaucracy.

For Architects and Planners: The existence of an aggregated baseline permit (Article 13) changes the design and planning phase. Before committing to a specific site within a Bulgarian acceleration zone, you must verify the scope of the baseline permit. Since installation-specific permits are excluded, you need to clearly identify which aspects of your project (e.g., specific cooling systems, unique structural modifications, or specialised waste heat recovery installations) fall outside the baseline. Pre-design work should focus on aligning with the zone-level assessments already completed. This allows for faster iteration and deployment, as the generic environmental and planning hurdles are cleared. You would be designing within a pre-approved envelope, rather than seeking approval for the envelope itself.

For CTOs and Investors: The 12-month maximum timeline for permit granting (Article 13(5)) provides a predictable schedule for capital expenditure planning. However, this timeline only starts once a comprehensive application is submitted. Therefore, thorough preparation of the application dossier, potentially with the assistance of the SIP, is crucial to avoid delays. The integration with the Gigabit Infrastructure Act SIPs (Article 12(1)) suggests that digital submission and tracking portals may already be available or under development, enabling a more transparent and trackable permitting process. Investors should monitor the designation of acceleration zones in Bulgaria, as the benefits of the aggregated baseline permit are geographically limited to these zones. Projects located outside these zones would not benefit from the 12-month cap or the baseline permit mechanism.

For Legal and Compliance Teams: The interaction between Article 12 and Regulation (EU) 2024/1309 (Gigabit Infrastructure Act) is a key area to watch. If Bulgaria chooses to integrate the data centre SIP with the existing Gigabit SIP, the procedural rules, digital access mechanisms, and dispute settlement processes of the Gigabit Act would apply. This could mean leveraging existing digital infrastructure to meet CADA requirements, potentially speeding up the implementation of the SIP framework. However, teams must ensure that the specific requirements for data centre projects (such as heat recovery and specific environmental assessments) are fully covered within this integrated framework.

Common misconceptions

Misconception 1: The Single Information Point grants the permits. Reality: The SIP does not have the authority to grant permits. Its role is to assist, coordinate, and facilitate the process. The actual authorisations are issued by the relevant competent authorities (e.g., environmental agencies, grid operators, local planning bodies). The SIP ensures these authorities communicate and process the application efficiently, but it is not the decision-maker. It is a facilitator, not a regulator.

Misconception 2: The aggregated baseline permit covers all permits for a data centre. Reality: Article 13(2) explicitly excludes installation-specific permits. The baseline permit covers zone-level authorisations, such as general environmental impact assessments and spatial planning consents for the zone as a whole. Individual projects still require specific permits for aspects unique to their design, such as specific building construction details, unique energy connection capacities, or specialised industrial equipment. The baseline permit removes the need to re-assess the general environmental and planning compatibility of the zone for each project, but it does not replace the need for project-specific approvals.

Misconception 3: Bulgaria must create a brand-new bureaucracy for SIPs. Reality: Article 12(1) allows Bulgaria to upgrade or integrate existing single information points, specifically those established under the Gigabit Infrastructure Act (Regulation (EU) 2024/1309). This means that the administrative infrastructure for SIPs may already exist or be in development, reducing the time needed to establish the CADA-compliant framework. Operators may interact with a familiar digital portal and administrative process, rather than a completely new system.

Misconception 4: The 12-month timeline applies to all data centre projects in Bulgaria. Reality: The strict 12-month permit-granting timeline under Article 13(5) applies only to data centre projects deployed in designated data centre acceleration zones. Projects outside these zones do not benefit from the aggregated baseline permit or the accelerated timeline. Therefore, the location of the data centre is critical to leveraging these CADA benefits. If a project is sited outside an acceleration zone, it would likely be subject to standard national permitting timelines.

Misconception 5: The environmental assessment is skipped for individual projects. Reality: While the aggregated baseline permit incorporates zone-level environmental assessments, individual projects must still comply with the baseline conditions. If a project falls outside the scope of the baseline permit (i.e., it is installation-specific), it may trigger a need for a specific environmental assessment for those unique aspects. The baseline permit does not grant a blanket exemption from all environmental scrutiny, but it significantly reduces the scope of what needs to be assessed at the project level.

Related

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