Summary As proposed in the Cloud and AI Development Act (CADA), Article 11 sets two conditions inside a data centre acceleration zone. First, when Member States set sustainability requirements for data centres deployed in a zone, they would have to use the key performance indicators specified in Commission Delegated Regulation (EU) 2024/1364 (adopted under the Energy Efficiency Directive, Directive (EU) 2023/1791), Annex II, points (a) to (n) (Article 11(1)). Second, Member States would have to ensure that the allocation and use of resources within a zone takes place on fair, reasonable and non-discriminatory terms and does not give rise to speculative reservation or foreclosure practices capable of impeding effective competition (Article 11(2)). CADA is a proposal and not yet in force, so this is what would apply if it is adopted.

Detail

Within Title III, Chapter I, CADA pairs faster deployment with two safeguards. The conditions that apply inside a data centre acceleration zone are set out in Article 11, "Conditions within acceleration zones". For public-sector and procurement officers engaging with operators or evaluating infrastructure projects, these conditions matter as much as the speed benefits.

Sustainability requirements built on harmonised KPIs

Article 11(1) provides that, "[w]hen setting sustainability requirements for data centres deployed in acceleration zones, Member States shall use the key performance indicators specified in Delegated Regulation (EU) 2024/1364 pursuant to Directive (EU) 2023/1791 under Annex II, from (a) to (n)."

This anchors the zone's environmental standards in existing EU law rather than leaving "sustainability" to be defined loosely Member State by Member State. Directive (EU) 2023/1791 is the recast Energy Efficiency Directive, which established a common Union rating scheme for data centres; Commission Delegated Regulation (EU) 2024/1364 (on the first phase of that scheme) sets the specific indicators. The Delegated Regulation's reporting indicators typically cover dimensions such as energy and power-usage efficiency, water use, renewable-energy use and waste-heat reuse — but the authoritative, enumerated list of points (a) to (n) is in Annex II of that Delegated Regulation, not in CADA itself, so any project should be assessed against the indicators as defined there.

By tying zone requirements to these KPIs, CADA aims to create a harmonised environmental baseline across the EU and prevent a "race to the bottom" in which Member States lower standards to attract investment. For procurement officers, that means data centre projects in a zone should be assessed against specific, quantifiable metrics rather than vague sustainability claims.

Fair, reasonable and non-discriminatory resource allocation

Article 11(2) addresses market integrity. Member States would have to ensure that "the allocation and use of resources within acceleration zones takes place on fair, reasonable and non-discriminatory terms and does not give rise to speculative reservation or foreclosure practices capable of impeding effective competition or the effective development or use of those zones."

The provision targets two failures the recitals flag (recital 39):

  1. Speculative reservation — reserving scarce resources (land, power capacity, connectivity) without genuine intent to build, locking out competitors.
  2. Foreclosure practices — conduct that impedes effective competition or the effective development or use of the zone.

For public bodies that allocate resources within a zone — land leases, grid-connection queues, access to public infrastructure — this implies a duty to allocate transparently and without favouring incumbents.

How Article 11 fits into Chapter I

Article 11 works alongside the rest of the chapter:

  • Article 10 — Member States designate zones and, where appropriate, conduct energy-needs analyses feeding grid planning.
  • Article 12 — single information points assist operators across the project lifecycle and assess whether a project may qualify as a strategic project under CADA Article 14.
  • Article 13 — facilitated permitting, including the aggregated baseline permit and the 12-month permitting cap.

Together, the chapter trades speed (Articles 12–13) against rigour: the KPIs in Article 11(1) keep acceleration from undercutting EU climate goals, and the fair-access rule in Article 11(2) keeps the economic benefits of zones broadly available.

What this means for you

For public-sector and procurement officers, the conditions shape how you contract, evaluate bids and oversee projects.

  1. Reflect the KPIs in contracts. When procuring from operators or leasing land within a zone, build in the sustainability KPIs from Delegated Regulation (EU) 2024/1364 (Article 11(1)) and require bidders to evidence how they will meet them.
  2. Allocate resources transparently. If your authority allocates land plots, grid connections or other resources within a zone, ensure the process is fair and non-discriminatory; "use-it-or-lose-it" terms or development milestones can help prevent the speculative reservation Article 11(2) prohibits.
  3. Assess regulatory risk. When evaluating strategic data centre projects (a project may be assessed for strategic-project status under CADA Article 14 with the help of the single information point under Article 12(3)), weigh alignment with the Article 11 conditions.
  4. Support monitoring. As part of national cloud and AI strategy work (Article 7), be ready to spot and report practices resembling speculative reservation or foreclosure.

Common misconceptions

  • "Member States can define their own sustainability metrics." No. Article 11(1) requires the use of the KPIs specified in Delegated Regulation (EU) 2024/1364. Member States set the requirements, but the metrics are harmonised at EU level.
  • "Zones allow unrestricted land banking." No. Article 11(2) prohibits speculative reservation; resources must be allocated for genuine development.
  • "Sustainability is optional for private operators." CADA places the obligation to set the requirements on Member States, but those requirements apply to data centres deployed in the zone — so an operator building there would have to comply with the KPIs the Member State sets under Article 11(1).
  • "FRAND only applies to intellectual property." In Article 11(2), "fair, reasonable and non-discriminatory" governs the allocation and use of physical and infrastructural resources (land, power, connectivity) within the zone, not IP licensing.

Related

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