Summary Under the proposed Cloud and AI Development Act (CADA), the Czech Republic would be required to designate at least one data centre acceleration zone within its territory within six months of the regulation entering into force, provided data centre capacity is being deployed there. The specific locations are not predetermined by EU law; instead, Article 10 mandates that national authorities select sites based on strict criteria, including available power grid capacity, network connectivity, waste-heat reuse potential, and a mandatory preference for brownfield sites over greenfield ones. Once designated, data centres in these zones must adhere to sustainability key performance indicators (KPIs) defined in Delegated Regulation (EU) 2024/1364, and resource allocation within the zones must be conducted on "fair, reasonable and non-discriminatory terms" to prevent speculation.

Detail

The proposed Cloud and AI Development Act (CADA), COM(2026) 502 final, seeks to address the critical shortage of compute capacity in the European Union and the risks associated with over-reliance on non-European providers. A central pillar of this proposal is the creation of data centre acceleration zones to streamline the deployment of critical infrastructure. For the Czech Republic, as for all Member States, the most immediate operational impact is the obligation to designate these zones under Article 10 of the proposal.

The Obligation to Designate Zones

Article 10(1) of the CADA proposal establishes a clear timeline and trigger for action. It states 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" by a date set as six months after the entry into force of the Regulation.

This is a mandatory requirement, not a voluntary option, for any Member State actively deploying data centre capacity. The Czech government would therefore need to identify and officially designate specific geographic areas or sites where data centre construction and operation will be facilitated. The primary objective is to create clear, streamlined regulatory environments for these critical infrastructure projects, thereby reducing the regulatory fragmentation that currently slows down deployment across the EU. The designation would serve as a signal to investors and operators that specific areas are prioritised for rapid development, supported by coordinated grid planning and administrative simplification.

Criteria for Selecting Acceleration Zones

The proposal does not leave the selection of these zones entirely to national discretion. Article 10(1) requires Member States to consider a specific, exhaustive list of factors when designating acceleration zones. For Czechia, this means the relevant Ministry (likely responsible for digital infrastructure, energy, or regional development) would be required to evaluate potential sites against the following mandatory considerations:

  1. Site Dimensions and Facility Size: Authorities must consider the location and dimension of the site, as well as the minimum and maximum size of facilities that could be built there [Article 10(1)(a)]. This ensures the zone can accommodate the scale of modern data centre projects.
  2. Power Grid Capacity: A critical factor is the "available and future power grid capacity" and the possibility for on-site storage and clean energy generation [Article 10(1)(b)]. Given the immense energy demands of modern AI and cloud workloads, proximity to robust, high-capacity grid connections is paramount. The zone must be viable for future energy needs, not just current ones.
  3. Network Connectivity: The zone must have "available and future network connectivity capacity" [Article 10(1)(c)]. This ensures that data centres can connect to high-speed fibre networks and international exchange points with low latency, a prerequisite for high-performance computing.
  4. Legacy Network Phasing Out: The designation should support the "phasing out of legacy copper networks" [Article 10(1)(d)], aligning with broader digitalisation goals and the transition to gigabit connectivity.
  5. Waste Heat Reuse: Sites must consider the "available and future facilities that can reuse data centre waste heat" [Article 10(1)(e)]. This is a significant sustainability driver, encouraging data centres to be located near urban heating networks, industrial zones, or district heating systems that can utilise the excess heat generated by servers, turning a waste product into a resource.
  6. Permitting Acceleration: Authorities must consider measures taken to accelerate the granting of necessary permits for constructing and operating data centres within the zone [Article 10(1)(f)]. The zone itself must be a vehicle for faster administrative processing.
  7. Brownfield Preference: Crucially, Article 10(1)(g) mandates a "preference for reusing brownfield sites over using greenfield sites." This means that in Czechia, former industrial sites, disused warehouses, or other previously developed land would likely be prioritised over undeveloped agricultural or natural land. This aims to minimise environmental impact, preserve biodiversity, and reduce urban sprawl.
  8. Sustainability and Climate Resilience: The site must be able to function sustainably, particularly regarding the prevention or minimisation of environmental impacts, supporting the reduction of carbon emissions, and ensuring climate resilience [Article 10(1)(h)].

Energy Planning and Grid Integration

Beyond the initial designation, Article 10(2) imposes ongoing duties on Member States to facilitate the development of these zones. The Czech Republic would be required to conduct a comprehensive analysis of the energy needs of current and future acceleration zones, reviewing this analysis at least every three years. This analysis must identify the required energy infrastructure capacity for the proper functioning of data centre projects located in these zones.

Furthermore, national transmission system operators (TSOs) and distribution system operators (DSOs) must take this analysis into account when preparing their network development plans. This ensures that grid investments are anticipatory, accommodating the future system needs of data centres rather than reacting to them after construction has already begun. This coordination is vital for preventing grid congestion, which has been a major bottleneck in data centre deployment across Europe. The proposal explicitly links the zone designation to the national network development plans to ensure that "anticipatory grid investments" are made to support the acceleration zones.

Sustainability Requirements and Resource Allocation

Once a zone is designated, specific conditions apply to data centres deployed within it. Article 11 of the CADA proposal sets out these conditions, ensuring that the acceleration of deployment does not come at the cost of environmental standards.

First, regarding sustainability, Article 11(1) requires Member States to use the key performance indicators (KPIs) specified in Commission Delegated Regulation (EU) 2024/1364 when setting sustainability requirements for data centres in acceleration zones. These KPIs cover metrics such as Power Usage Effectiveness (PUE), Water Usage Effectiveness (WUE), and carbon emissions, ensuring that data centres in Czechia meet high environmental standards. It is important to note that these KPIs are defined in the Delegated Regulation, not enumerated directly in the CADA text itself.

Second, Article 11(2) addresses market fairness. It mandates that the allocation and use of resources within acceleration zones must take place on "fair, reasonable and non-discriminatory terms." The provision explicitly aims to prevent "speculative reservation or foreclosure practices" that could impede effective competition or the effective development or use of those zones. For CTOs, investors, and operators, this suggests that while access to these zones will be streamlined, there will be safeguards against land banking or monopolistic control of critical infrastructure slots within the acceleration zones.

Coordination and Single Information Points

While Article 10 focuses on the zoning, it works in tandem with other provisions to speed up deployment. Article 10(4) requires the involvement and coordination of all relevant national, regional, and local authorities, including transmission system operators, when designating acceleration zones. This multi-stakeholder approach is designed to resolve conflicts early, such as those between land use planning and energy infrastructure needs.

Additionally, the proposal links these zones to the establishment of Single Information Points (under Article 12), which will assist data centre operators throughout the lifecycle of their projects. This means that once a zone is designated in Czechia, operators can expect a dedicated channel for administrative support, further reducing the time and cost of bringing a data centre online. The Single Information Point would coordinate spatial planning, environmental assessments, and grid connection applications, acting as a "one-stop-shop" for the operator.

What this means for you

For CTOs, architects, infrastructure investors, and SMEs evaluating the practical impact of CADA in Czechia, the introduction of data centre acceleration zones represents a significant shift in how you plan for compute infrastructure.

Site Selection Strategy: If you are planning to build or lease data centre capacity in Czechia, your site selection process should now align with the criteria in Article 10(1). Prioritise brownfield sites, as these are legally preferred under the proposal. Ensure your potential locations have documented access to sufficient power grid capacity and high-speed network connectivity. Sites that can integrate with local waste-heat reuse networks will likely receive faster permitting and greater regulatory support. Operators should proactively engage with local authorities to identify which sites are being considered for designation.

Permitting Timelines: The designation of acceleration zones is linked to facilitated administrative processes. Under Article 13 (which operates in conjunction with Article 10), data centre projects in these zones benefit from accelerated environmental assessments and a maximum 12-month permit-granting procedure for comprehensive applications. This predictability allows for more accurate project scheduling and financial modelling, reducing the risk of indefinite delays that have plagued the sector.

Sustainability Compliance: Be prepared to comply with the KPIs from Delegated Regulation (EU) 2024/1364. Your technical architecture must demonstrate high energy and water efficiency. Investing in technologies that lower PUE and enable waste-heat recovery will not only ensure compliance with Article 11 but may also make your project more attractive for designation as a "strategic project" under Article 14, which can unlock additional EU funding and support.

Competitive Landscape: The requirement for fair, reasonable, and non-discriminatory resource allocation (Article 11(2)) suggests a more transparent market for site acquisition and grid connection within acceleration zones. However, it also means that speculative land holding may be challenged. SMEs should monitor the official designation of these zones in Czechia to identify early opportunities to secure infrastructure slots before the market becomes saturated. The "fair, reasonable and non-discriminatory" clause is a direct safeguard against market distortion.

Common misconceptions

Misconception 1: The EU will choose the specific locations in Czechia. Reality: The EU sets the framework and criteria, but the Czech Republic retains the sovereignty to designate the specific geographic boundaries of its acceleration zones. The Commission monitors compliance with the criteria but does not pick the sites. The proposal requires the Member State to "designate" the zone.

Misconception 2: All data centres in Czechia must be in acceleration zones. Reality: Article 10 applies where data centre capacity is being deployed, requiring at least one zone. It does not prohibit data centre development outside these zones. However, projects within acceleration zones will benefit from streamlined permitting, coordinated grid planning, and potentially faster environmental assessments. Projects outside the zones would not automatically receive these specific benefits.

Misconception 3: Brownfield preference means greenfield sites are banned. Reality: Article 10(1)(g) states a "preference" for brownfield sites. This means authorities should prioritise them, but it does not strictly ban the use of greenfield sites if no suitable brownfield alternative exists or if specific technical requirements (like massive grid capacity) cannot be met on brownfield land. The text uses the word "preference," not "ban."

Misconception 4: Acceleration zones guarantee automatic permits. Reality: While Article 13 introduces facilitated processes and a 12-month maximum timeline for comprehensive applications, permits are not automatic. Projects still must undergo environmental assessments and meet all technical and sustainability criteria. The "acceleration" refers to the efficiency and speed of the administrative process, not the removal of regulatory scrutiny.

Related

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