Summary Under the proposed Cloud and AI Development Act (CADA), public authorities at national, regional, and local levels face new, binding obligations to accelerate data centre deployment. As set out in Article 10, Member States must designate at least one "data centre acceleration zone" within their territory where capacity is being deployed. This designation triggers a suite of duties: conducting comprehensive energy and greenhouse gas analyses, integrating these findings into national grid planning, updating spatial development plans, and ensuring coordination with energy and network operators. The regime aims to triple EU data centre capacity within five to seven years by removing bottlenecks, but it requires authorities to proactively plan for energy, connectivity, and sustainability rather than reacting to individual project applications.

Detail

The proposed Cloud and AI Development Act (CADA), COM(2026) 502 final, establishes a targeted framework to address the Union's critical shortage of computing capacity. While the Act covers various aspects of the cloud ecosystem, Article 10 specifically targets the physical and regulatory prerequisites for data centre deployment. For public authorities, this shifts the role from passive regulators to active facilitators of strategic infrastructure.

The Designation Obligation: Article 10(1)

The cornerstone of the regime is the mandatory designation of acceleration zones. Article 10(1) stipulates that "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."

This obligation is time-bound: the designation must occur by the date of entry into force of the Regulation plus six months. When selecting these zones, public authorities cannot act arbitrarily. Article 10(1) lists eight specific factors that must be considered to ensure the zone is viable, sustainable, and capable of supporting high-performance computing:

  • Site characteristics: The location, dimension, and the minimum and maximum size of facilities that could be built.
  • Energy capacity: The available and future power grid capacity, including the possibility and conditions for on-site storage and clean energy generation.
  • Connectivity: The available and future network connectivity capacity.
  • Legacy networks: The capacity of the zone to support the phasing out of legacy copper networks.
  • Heat reuse: The available and future facilities that can reuse data centre waste heat.
  • Permitting speed: All measures taken to accelerate the granting of necessary permits for constructing and operating data centres within the zone.
  • Brownfield preference: A preference for reusing brownfield sites over using greenfield sites.
  • Sustainability: The ability of the site to function sustainably, particularly regarding preventing or minimising environmental impacts, reducing carbon emissions, and ensuring climate resilience.

Energy Analysis and Grid Integration

A critical innovation in Article 10 is the requirement for forward-looking energy planning. Article 10(2) mandates that 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" for current and future acceleration zones.

This analysis is not a static document; it must identify the required energy infrastructure capacity for the proper functioning of data centre projects. Crucially, the analysis must be conducted at least when designating the zones and subsequently reviewed triennially.

The proposal explicitly links this analysis to grid planning. Article 10(2)(b) requires Member States to ensure that network development plans prepared by transmission system operators (under Directive (EU) 2019/944) and distribution system operators "take due account of the analysis prepared pursuant to point (a)." This provision is designed to enable "anticipatory investments" to accommodate future system needs, preventing the grid from becoming a bottleneck for the very capacity the Act seeks to expand.

Spatial Planning and Environmental Coordination

Article 10(3) extends obligations to national, regional, and local authorities responsible for spatial and development plans. These authorities must consider including provisions for the development of data centre projects deployed in acceleration zones and the necessary infrastructure. Member States must ensure that all relevant spatial planning data are available to data centre operators.

The proposal also addresses environmental assessments. Where spatial plans are subject to assessment under Directive 2001/42/EC (Strategic Environmental Assessment) or Article 6 of Directive 92/43/EEC (Habitats Directive), those assessments shall be combined. Where applicable, the combined assessment must also address the impact on potentially affected water bodies under Directive 2000/60/EC. This "combined assessment" approach is intended to streamline the regulatory process while maintaining high environmental standards.

Mandatory Coordination

Designation is not a unilateral act. Article 10(4) requires Member States to ensure the involvement of and coordination among all relevant national, regional, and local authorities and entities. This includes:

  • Operators as defined in the Electronic Communications Code (Directive (EU) 2018/1972).
  • Transmission system operators.
  • Distribution system operators.

This ensures that the designation of an acceleration zone is supported by the necessary technical and operational readiness of the grid and network infrastructure.

Interaction with Single Information Points and Baseline Permits

While Article 10 sets the stage for designation and planning, it operates in concert with Article 12 and Article 13 to create a streamlined deployment environment.

  • Single Information Points: Article 12 requires Member States to designate single information points for data centre operators in acceleration zones. These points assist operators throughout the project lifecycle with all required authorisations, including spatial planning, environmental assessments, and grid connections.
  • Aggregated Baseline Permits: Article 13(2) mandates that Member States prepare and issue an "aggregated baseline permit" for each designated acceleration zone. This permit covers the permits and administrative authorisations commonly required for data centre projects within the zone, excluding installation-specific permits. This mechanism significantly reduces the administrative burden for individual projects, provided they fall within the scope of the baseline permit.

What this means for you

For public authorities, the acceleration zone regime represents a fundamental shift in how digital infrastructure is planned and permitted. You are no longer merely reviewing individual planning applications; you are responsible for creating the pre-conditions for a strategic sector to thrive.

Key Actions for Public Authorities:

  1. Conduct the Energy Analysis Immediately: Do not wait for project applications. Initiate the comprehensive energy and greenhouse gas analysis required by Article 10(2) as soon as possible to inform grid planning. Ensure this analysis is shared with transmission and distribution system operators to trigger anticipatory investments.
  2. Identify and Designate Zones: Review your territory for sites that meet the Article 10(1) criteria, prioritising brownfield sites and areas with robust grid capacity. Ensure the designation is completed within the six-month window from the Regulation's entry into force.
  3. Update Spatial Plans: Revise local and regional spatial development plans to explicitly accommodate data centre projects in the designated zones. Ensure all relevant data is accessible to operators.
  4. Establish Coordination Mechanisms: Formally engage with energy system operators and network providers to ensure the designation process is technically sound and that grid capacity matches the projected demand.
  5. Prepare for the Baseline Permit: Work with national competent authorities to define the scope of the "aggregated baseline permit" for your zone. Ensure that your local permitting processes are aligned to support the streamlined procedures envisioned by Article 13.

By proactively fulfilling these obligations, public authorities can unlock investment, support the EU's goal of tripling data centre capacity, and ensure that new infrastructure is sustainable and resilient.

Common misconceptions

"Acceleration zones are optional for Member States." Reality: Article 10(1) is mandatory: "that Member State shall designate at least one data centre acceleration zone." If a Member State is deploying data centre capacity, the designation is a legal requirement, not a policy choice.

"Designating a zone means any data centre can be built there without further checks." Reality: The "aggregated baseline permit" under Article 13 covers common permits, but Article 13(4) clarifies that data centres must still obtain additional permits for activities falling outside the baseline permit. Furthermore, individual projects must still meet sustainability and technical criteria.

"The energy analysis is a one-off exercise." Reality: Article 10(2) explicitly requires Member States to "review at least every three years" the comprehensive analysis of energy needs. This ensures the planning remains responsive to evolving demand and technological changes.

"Only national governments are involved in the process." Reality: Article 10(3) and 10(4) explicitly involve national, regional, and local authorities. Spatial planning, local coordination, and the involvement of local network operators are critical components of the regime.

Related

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