Where will the data centre acceleration zones be in Finland?

Under the proposed Cloud and AI Development Act (CADA), Finland is required to designate at least one data centre acceleration zone within six months of th

Summary Under the proposed Cloud and AI Development Act (CADA), Finland is required to designate at least one data centre acceleration zone within six months of the regulation's entry into force, provided it is deploying data centre capacity. CADA does not pre-select specific geographic locations in Finland; instead, it mandates that Finnish authorities select sites based on strict criteria including grid availability, network connectivity, waste-heat reuse potential, and a preference for brownfield sites. These zones must meet sustainability key performance indicators defined in Delegated Regulation (EU) 2024/1364 and ensure fair, non-discriminatory resource allocation to accelerate permitting and deployment.

Detail

The Cloud and AI Development Act (CADA), as proposed in COM(2026) 502 final, introduces a harmonised EU-wide framework to accelerate the deployment of data centres. This addresses the current capacity gap and the geographic concentration of computing infrastructure that currently limits the Union's strategic autonomy. For Finland, as with all Member States where data centre capacity is being deployed, the core obligation is set out in Article 10 of the proposal.

The Obligation to Designate (Article 10)

Article 10(1) 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." This designation must be completed by the date of entry into force of the Regulation plus six months.

CADA does not dictate where in Finland these zones must be located. The choice remains with national, regional, and local authorities, but the selection is strictly bounded by eight mandatory considerations listed in Article 10(1)(a)–(h). When designating acceleration zones, Finland must consider the following factors:

Site dimensions and facility size: The location and dimension of the site, along with the minimum and maximum size of facilities that could be built there (Article 10(1)(a)).
Power grid capacity: Available and future power grid capacity, and the possibility and conditions for on-site storage and clean energy generation (Article 10(1)(b)).
Network connectivity: Available and future network connectivity capacity (Article 10(1)(c)).
Legacy networks: The capacity of the zone to support the phasing out of legacy copper networks (Article 10(1)(d)).
Waste-heat reuse: Available and future facilities that can reuse data centre waste heat (Article 10(1)(e)).
Permitting acceleration: All measures taken to accelerate the granting of necessary permits for constructing and operating data centres within the zone (Article 10(1)(f)).
Brownfield preference: A preference for reusing brownfield sites over using greenfield sites (Article 10(1)(g)).
Sustainability and climate resilience: The ability of the site to function sustainably, particularly regarding preventing or minimising environmental impacts, supporting the reduction of carbon emissions, and climate resilience (Article 10(1)(h)).

Energy Planning and Grid Integration

Beyond the initial designation, Article 10(2) imposes ongoing planning obligations to ensure that infrastructure development keeps pace with energy demand. Finland must conduct a comprehensive analysis of the energy needs and their respective impacts on greenhouse gas emissions for current and future acceleration zones. This analysis must be reviewed at least every three years.

Crucially, this analysis must feed into the network development plans prepared by transmission system operators (pursuant to Article 51 of Directive (EU) 2019/944) and distribution system operators (pursuant to Article 32 of the same Directive). This ensures that grid investments are anticipatory rather than reactive, accommodating future system needs identified in the acceleration zones. Member States must also facilitate clear and efficient procedures for grid connection and flexible connection agreements for data centre operators.

Conditions Within Acceleration Zones (Article 11)

Once designated, specific conditions apply to data centres deployed within these zones, governed by Article 11. These conditions ensure that the acceleration of deployment does not come at the expense of environmental standards or market fairness.

Sustainability KPIs: Article 11(1) mandates that when setting sustainability requirements for data centres in acceleration zones, Member States "shall use the key performance indicators specified in Delegated Regulation (EU) 2024/1364 pursuant to Directive (EU) 2023/1791." This ensures that sustainability metrics—such as Power Usage Effectiveness (PUE), Water Usage Effectiveness (WUE), and carbon footprint—are consistent across the EU, preventing a "race to the bottom" on environmental standards. It is important to note that these specific KPIs are enumerated in the Delegated Regulation, not in the CADA text itself.

Fair Resource Allocation: Article 11(2) requires Member States to ensure that the allocation and use of resources within acceleration zones takes place on fair, reasonable, and non-discriminatory terms. This provision is designed to prevent speculative reservation or foreclosure practices that could impede effective competition or delay the development of the zone. For SMEs and new market entrants, this is a critical safeguard against incumbent monopolisation of land and grid connections within these strategic areas.

Administrative Facilitation and Permitting

While not part of the location criteria, it is important to note that Article 13 links acceleration zones to facilitated permitting processes. Data centre projects deployed in acceleration zones are considered "strategic projects" within the meaning of the Regulation on speeding-up environmental assessments.

Member States must prepare and issue an aggregated baseline permit for each designated acceleration zone. This permit covers the common permits and administrative authorisations required for data centre projects within the zone, excluding installation-specific permits. The permit-granting procedure for such projects "shall not exceed 12 months, from the moment a comprehensive application has been submitted" (Article 13(5)). This creates a predictable timeline for developers, provided they meet the zone's specific criteria.

What this means for you

For CTOs, architects, data centre operators, and SMEs evaluating the practical impact of CADA in Finland, the designation of acceleration zones represents both a constraint and a significant opportunity.

1. Site Selection Strategy You cannot simply choose any location for a new data centre if you wish to benefit from the accelerated permitting and strategic status. Your site selection must align with the Finnish authorities' designation of acceleration zones. Prioritise sites that demonstrably meet the Article 10(1) criteria, particularly:

Proximity to grid capacity: With the requirement to anticipate grid needs, zones with confirmed, high-capacity grid connections will be prioritised. Operators should engage early with transmission system operators to understand the "future power grid capacity" analysis.
Brownfield potential: Given the explicit preference for brownfield sites in Article 10(1)(g), repurposing existing industrial or commercial land may offer a competitive advantage in securing designation or support. Greenfield sites may face higher scrutiny unless they offer unique sustainability benefits.
Waste-heat integration: Sites near district heating networks or industrial facilities capable of utilising waste heat (Article 10(1)(e)) will be more attractive to regulators. Finland's existing district heating infrastructure makes this a particularly relevant criterion for Finnish sites.

2. Compliance and Sustainability Your technical architecture must be designed to meet the KPIs from Delegated Regulation (EU) 2024/1364 referenced in Article 11(1). This means your PUE, WUE, and carbon footprint metrics must be tracked and reported against EU-standardised indicators. Designing for efficiency by default is no longer just a best practice; it is a regulatory prerequisite for operating in these zones. Failure to meet these KPIs could disqualify a project from the acceleration zone benefits.

3. Market Access for SMEs The fair, reasonable, and non-discriminatory clause in Article 11(2) is a protective measure for smaller players. If you are an SME evaluating entry into the Finnish market, you are protected from speculative land hoarding or grid reservation by larger incumbents. This should encourage earlier engagement with local authorities to secure commitments. The regulation explicitly aims to prevent practices capable of "impeding effective competition or the effective development or use of those zones."

4. Timeline Planning With the designation deadline set at six months post-entry-into-force, the initial map of Finnish acceleration zones will be clear relatively quickly. Monitor national announcements closely. Once zones are designated, the 12-month permitting clock (Article 13(5)) becomes a critical milestone for your project roadmap. The "aggregated baseline permit" approach means that many standard approvals will be pre-granted for the zone, significantly reducing administrative burden.

Common misconceptions

Misconception 1: CADA designates specific zones in Finland. CADA does not select specific cities or regions. It sets the rules for how Finland must select them. The actual geographic locations will be determined by Finnish national and regional authorities based on the criteria in Article 10(1). The Commission's role is to monitor capacity gaps and recommend measures, not to draw the maps.

Misconception 2: Acceleration zones bypass all environmental regulations. Acceleration zones streamline permitting through aggregated baseline permits (Article 13(2)) and expedited timelines, but they do not exempt projects from environmental assessments. In fact, Article 10(1)(h) and Article 11(1) impose stricter sustainability requirements, mandating the use of EU-standardised KPIs from Delegated Regulation (EU) 2024/1364. The "toolbox" for environmental assessments accelerates the process but maintains high levels of protection.

Misconception 3: Only large hyperscalers can benefit. The fair, reasonable, and non-discriminatory requirement in Article 11(2) explicitly aims to prevent foreclosure practices. This is intended to keep the market open for SMEs and smaller operators, ensuring they have equitable access to land, grid connections, and permits within acceleration zones. The regulation specifically notes that single information points must pay particular attention to SMEs.

Misconception 4: Greenfield sites are preferred for new builds. Contrary to typical development patterns, Article 10(1)(g) explicitly states a preference for reusing brownfield sites over using greenfield sites. This reflects the EU's broader sustainability and land-use policies. While greenfield sites are not excluded, they must justify their selection against the preference for brownfield reuse.

Misconception 5: The KPIs are defined in the CADA text. The specific key performance indicators (KPIs) for sustainability are not enumerated in the CADA proposal itself. Article 11(1) explicitly refers to Delegated Regulation (EU) 2024/1364 for the specific metrics. CADA provides the framework, but the technical details are in the delegated act.

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