Summary As proposed, the Cloud and AI Development Act (CADA) would require Member States to ensure the involvement of, and coordination among, all relevant national, regional and local authorities when designating data centre acceleration zones. Article 10(4) specifically extends this to electronic communications operators, transmission system operators and distribution system operators. The aim is to align permitting, energy and connectivity planning from the outset and prevent the fragmented decision-making that delays compute capacity.

Detail

The proposed Cloud and AI Development Act (CADA) introduces a mechanism to accelerate data centre deployment across the EU by having Member States designate "data centre acceleration zones" (acceleration zones). A core part of this framework is coordination among different levels of government and the operators of critical infrastructure, so that a data centre's physical footprint, its power supply and its connectivity are planned together rather than in sequence.

The coordination mandate in Article 10

The legal basis is Article 10 of the CADA proposal, which sets out how Member States would designate acceleration zones. Article 10(1) lists the aspects Member States must consider — including the site's location and dimensions, available and future grid capacity, network connectivity, waste-heat reuse, brownfield preference and sustainability. Article 10(4) then adds a specific procedural obligation on stakeholder involvement.

As proposed, Article 10(4) provides that, when designating acceleration zones, Member States "shall ensure the involvement of and coordination among all relevant national, regional and local authorities and entities." It names three categories of entities that must be part of that coordination:

  1. Operators as defined in Article 2, point (29), of Directive (EU) 2018/1972 (the European Electronic Communications Code) — providers of electronic communications networks and services.
  2. Transmission system operators as defined in Article 2, point (35), of Directive (EU) 2019/944 (the Electricity Directive) — the operators of the high-voltage grid.
  3. Distribution system operators as defined in Article 2, point (29), of Directive (EU) 2019/944 — the operators of the lower-voltage grid that delivers electricity to end users, including data centres.

By naming these entities, the proposal treats data centre deployment as an intersection of land use, energy and digital connectivity, rather than a land-use question alone.

Integration with spatial and energy planning

The coordination duty in Article 10(4) works alongside the rest of Article 10. As proposed, Article 10(2) provides that Member States, "where appropriate to facilitate the development of acceleration zones," shall conduct and review at least every three years a comprehensive analysis of the energy needs of current and future zones, and shall ensure that the network development plans of 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 that analysis, considering the potential of anticipatory investments.

Article 10(3) provides that national, regional and local authorities responsible for spatial and development plans should consider including provisions for data centre projects in acceleration zones and the necessary infrastructure, and that relevant spatial planning data be made available to operators. The coordination requirement in Article 10(4) is what brings the grid and communications operators into that planning early, rather than after a site has already been chosen.

The role of single information points

To operationalise coordination, the proposal provides in Article 12 for "single information points." A data centre operator would have the right, on request, to be assisted by such a point throughout the lifecycle of a project in an acceleration zone. While Article 10(4) mandates the involvement of authorities and operators, Article 12 channels that involvement through a single, coordinated administrative interface that can also help assess whether a project may qualify as a strategic project under Article 14.

Strategic projects

Article 10 focuses on national and regional coordination. Separately, Article 14 lets the Commission designate "data centre strategic projects" selected through open calls for expressions of interest where they meet at least two of five criteria. Strong coordination and alignment with national energy and digital plans help a project meet those criteria, but strategic status is a distinct Commission decision, not an automatic result of local coordination.

What this means for you

For public-sector and procurement officers, the coordination duty in Article 10(4) of the CADA proposal would shape how future data centre initiatives are planned.

1. Map stakeholders early. Identify and engage the relevant transmission and distribution system operators and electronic communications operators at the start of planning for any public-sector data centre initiative. Leaving grid or connectivity questions to the procurement phase risks delay; the framework expects these entities in the foundational coordination for zones.

2. Align with national strategies. As proposed, Member States must adopt national cloud and AI strategies (Article 7), aligned with the EU's digital targets, that support data centre capacity. Align your requirements with those strategies and the designated acceleration zones; capacity sited outside coordinated zones may face longer permitting and less administrative support.

3. Build infrastructure due diligence into tenders. Because the framework expects bidders to have engaged grid and comms operators, you can ask bidders to evidence that engagement and their alignment with the local zone's infrastructure plans, reducing the risk of projects stalling on unforeseen constraints.

4. Work across silos. The proposal explicitly requires coordination across levels of government. Establish formal channels with regional and local counterparts and with the authorities responsible for energy and digital infrastructure.

Common misconceptions

Misconception 1: Coordination is optional or informal. As proposed, Article 10(4) uses "shall ensure the involvement of and coordination among," making it a legal obligation on Member States when designating acceleration zones, not merely best practice.

Misconception 2: Only national authorities are responsible. The text refers to "national, regional and local authorities." Coordination is not solely top-down; regional and local authorities have a direct role, particularly on spatial planning and local infrastructure.

Misconception 3: Grid and comms operators are passive recipients of information. "Coordination" implies active collaboration, not just notification. Their input feeds the energy-needs analysis under Article 10(2) and the network development plans of TSOs and DSOs.

Misconception 4: This only applies to brand-new data centres. Recital 38 frames acceleration zones as facilitating the development, expansion and modernisation of data centres, so the coordination logic is not confined to greenfield projects, though the precise scope would depend on national designation.

Related

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