Summary As proposed in the Cloud and AI Development Act (CADA), Member States must explicitly consider a preference for reusing brownfield sites over using greenfield sites when designating data centre acceleration zones. Article 10(1)(g) of the proposal mandates this preference to support sustainable infrastructure deployment. Additionally, Article 10(1)(h) requires authorities to assess a site's ability to function sustainably, particularly regarding the prevention of environmental impacts, the reduction of carbon emissions, and climate resilience. These criteria ensure that the rapid expansion of compute capacity does not come at the expense of the EU's environmental objectives.

Detail

The Cloud and AI Development Act (CADA), proposed by the European Commission on 3 June 2026 (COM(2026) 502 final), introduces a harmonised framework to accelerate the deployment of data centre capacity across the Union. A central component of this framework is the designation of "data centre acceleration zones" (acceleration zones) by Member States. These zones are intended to facilitate the rapid, sustainable, and efficient deployment of data centre infrastructure while addressing the EU's growing compute capacity gap.

When planning and designating these zones, public-sector authorities are required to evaluate specific criteria to ensure that development aligns with broader environmental and strategic goals. The proposal places significant emphasis on land-use efficiency and environmental sustainability, directly addressing concerns about the ecological footprint of expanding data centre networks.

The Legal Basis: Article 10(1)

Article 10 of the CADA proposal sets out the obligations for Member States to designate at least one data centre acceleration zone within their territory where data centre capacity is being deployed. Paragraph 1 of this Article lists the specific aspects Member States must consider when designating these zones.

Two specific sub-points within Article 10(1) are critical for prioritising brownfield sites:

  • Article 10(1)(g) states that Member States must consider "the preference for reusing brownfield sites over using greenfield sites."
  • Article 10(1)(h) requires consideration of "the ability of the site or area to function sustainably, particularly as regards preventing or minimising environmental impacts and supporting the reduction of carbon emissions and its climate resilience."

Understanding the Brownfield Preference

The explicit preference for brownfield sites reflects the EU's commitment to circular economy principles and the efficient use of land. In the context of the proposal, brownfield sites refer to previously developed lands that may be contaminated, underutilised, or abandoned, whereas greenfield sites are undeveloped land, often agricultural or natural habitats.

By prioritising brownfield redevelopment, the CADA proposal aims to:

  1. Preserve Natural Habitats: Reduce pressure on agricultural land and biodiversity-rich areas, aligning with the EU's broader biodiversity strategies.
  2. Revitalise Urban Areas: Reactivate underused industrial or commercial zones, potentially bringing economic benefits to local communities and reducing urban sprawl.
  3. Reduce Infrastructure Costs: Brownfield sites often have existing connections to energy grids, telecommunications networks, and transport infrastructure, which can lower the barrier to entry for data centre operators and accelerate deployment timelines.

However, the preference is not an absolute ban on greenfield development. The proposal uses the term "preference," indicating that authorities must weigh the benefits of brownfield reuse against other factors, such as grid capacity, connectivity, and the technical feasibility of remediation. If a brownfield site poses insurmountable environmental risks (e.g., severe contamination requiring excessive remediation) or lacks the necessary infrastructure potential, a greenfield site may still be designated, provided it meets the other sustainability criteria outlined in Article 10(1)(h) and the remaining sub-points.

Sustainability and Climate Resilience

The second key criterion, Article 10(1)(h), broadens the scope beyond land use to overall sustainability. Authorities must assess whether a site can function sustainably. This involves evaluating:

  • Environmental Impacts: Measures to prevent or minimise negative effects on local ecosystems, air quality, and water resources. This includes assessing the site's impact on the surrounding environment during both construction and operation.
  • Carbon Emissions: Strategies to support the reduction of carbon emissions. This could involve the integration of renewable energy sources, the use of waste heat recovery systems, or the selection of sites that facilitate low-carbon logistics.
  • Climate Resilience: The site's ability to withstand climate-related risks, such as flooding, extreme heat, drought, or other weather events that could disrupt data centre operations. Given the critical nature of data infrastructure, ensuring that acceleration zones are located in areas resilient to climate change is a mandatory consideration.

This holistic approach ensures that acceleration zones are not only built quickly but are also robust, environmentally responsible, and aligned with the EU's broader climate objectives, including those set out in the Energy Efficiency Directive and the Renewable Energy Directive.

Integration with Other Planning Requirements

Article 10(1) lists several other factors that must be considered alongside the brownfield preference and sustainability criteria. These include:

  • The location and dimension of the site, including minimum and maximum facility sizes (Article 10(1)(a)).
  • Available and future power grid capacity and the possibility of on-site clean energy generation (Article 10(1)(b)).
  • Available and future network connectivity capacity (Article 10(1)(c)).
  • The capacity to support the phasing out of legacy copper networks (Article 10(1)(d)).
  • The availability of facilities that can reuse data centre waste heat (Article 10(1)(e)).
  • Measures taken to accelerate permit granting (Article 10(1)(f)).

Authorities must balance these technical and logistical requirements with the environmental preferences outlined in points (g) and (h). For instance, a brownfield site may be preferred for its land-use efficiency, but if it lacks sufficient grid capacity or poses high remediation costs that would delay deployment significantly, it may not be the most viable option for an acceleration zone. In such cases, the authority must document why the technical constraints outweigh the brownfield preference.

The Role of Sustainability in the Broader Framework

The emphasis on sustainability in Article 10 is not isolated. It connects to Article 11, which requires Member States to use specific key performance indicators (KPIs) defined in Delegated Regulation (EU) 2024/1364 when setting sustainability requirements for data centres deployed in acceleration zones. Furthermore, Article 13 designates data centre projects in these zones as "strategic projects" for the purpose of environmental assessments, streamlining the permitting process while maintaining high environmental standards.

The proposal also links to the Energy Efficiency Directive and the Renewable Energy Directive, ensuring that the acceleration of data centre deployment contributes to, rather than hinders, the EU's energy transition. By prioritising brownfield sites and assessing climate resilience, Member States can ensure that the new infrastructure is future-proofed against climate risks and contributes to a sustainable digital economy.

What this means for you

For public-sector officials, regional planners, and procurement officers involved in infrastructure development, the CADA proposal introduces clear, legally binding considerations for land use in data centre projects.

  1. Incorporate Brownfield Assessment into Planning: When identifying potential sites for acceleration zones, your planning documents must explicitly address the preference for brownfield sites. This should be documented in the designation process to demonstrate compliance with Article 10(1)(g).
  2. Conduct Sustainability Audits: Perform detailed sustainability assessments for candidate sites, focusing on environmental impact, carbon emission reduction potential, and climate resilience. These assessments should inform the decision-making process as required by Article 10(1)(h).
  3. Coordinate with Environmental Authorities: Engage with environmental protection agencies and climate resilience experts early in the planning phase. Their input will be crucial in evaluating the sustainability and climate resilience of both brownfield and greenfield options.
  4. Document the Rationale: If a greenfield site is chosen over a brownfield alternative, you must be prepared to justify this decision based on the other criteria in Article 10(1), such as grid capacity, connectivity, or technical feasibility. Transparency in this justification will be important for regulatory compliance and public accountability.
  5. Align with National Strategies: Ensure that your acceleration zone designations are consistent with national cloud and AI strategies and broader environmental policies, such as national energy and climate plans.

Common misconceptions

  • Misconception: The CADA proposal bans the development of data centres on greenfield sites. Reality: The proposal establishes a "preference" for brownfield sites, not a prohibition. Greenfield sites can still be designated if they offer superior sustainability, grid connectivity, or other strategic advantages that outweigh the benefits of brownfield reuse, provided the decision is well-documented.

  • Misconception: Any previously used land automatically qualifies as a brownfield site under CADA. Reality: While the proposal prefers brownfield reuse, the site must still meet the other criteria in Article 10(1), including sustainability, climate resilience, and technical feasibility. A contaminated or structurally unsound brownfield site may not be suitable for an acceleration zone without significant remediation, which must be factored into the planning process.

  • Misconception: Sustainability considerations are optional or secondary to speed of deployment. Reality: Article 10(1)(h) explicitly requires the consideration of sustainability and climate resilience as core aspects of the designation process. These are not optional add-ons but mandatory criteria that must be evaluated alongside technical and logistical factors. Speed of deployment is a goal, but it must be achieved within the bounds of sustainability.

  • Misconception: The preference for brownfield sites applies only to the initial designation. Reality: The preference is a guiding principle for the entire designation process. Authorities must continuously evaluate whether brownfield options are viable throughout the planning and selection phases, ensuring that the final designation reflects the best available sustainable option.

Related

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