Where will the data centre acceleration zones be in Greece under CADA?

Under the proposed Cloud and AI Development Act (CADA), Greece will be legally required to designate at least one data centre acceleration zone within its

Summary Under the proposed Cloud and AI Development Act (CADA), Greece will be legally required to designate at least one data centre acceleration zone within its territory if it is deploying data centre capacity. This designation must occur no later than six months after the Regulation enters into force. The specific geographic locations are not predetermined by EU law; instead, Greek authorities must select sites based on strict criteria in Article 10, including grid capacity, connectivity, waste-heat reuse potential, and a mandatory preference for brownfield sites. Once designated, Article 11 ensures these zones operate under strict sustainability Key Performance Indicators (KPIs) from Delegated Regulation (EU) 2024/1364 and prohibits speculative resource hoarding.

Detail

The Cloud and AI Development Act (CADA), as proposed in COM(2026) 502 final, introduces a harmonised framework to accelerate the deployment of sustainable and innovative computing capacity across the European Union. A central pillar of this framework is the creation of data centre acceleration zones (referred to in the text as "acceleration zones"). These zones are designed to streamline permitting, ensure sustainability, and address the EU's critical capacity gap.

For Greece, as for all Member States deploying data centre capacity, the obligation is triggered by the act of deployment itself. According to Article 10(1) of the CADA proposal, "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 [P.O. insert the date of entry into force of this Regulation plus 6 months]."

This means that the location of these zones is not a static EU-wide map but a dynamic, national decision. Greek authorities will identify specific sites or areas that meet the strategic and technical requirements set out in the legislation. The selection process is governed by a comprehensive list of factors that authorities "shall consider" when designating these zones, as detailed in Article 10(1)(a)–(h).

Designation Criteria: What Greek Authorities Must Consider

When identifying where to place acceleration zones, Greek authorities must evaluate several interconnected technical and environmental factors. These criteria are designed to ensure that new data centres are resilient, efficient, and integrated into the existing infrastructure landscape. The proposal explicitly states that Member States "shall consider the following aspects when designating acceleration zones":

Site Dimensions and Capacity (Article 10(1)(a)): Authorities must assess the location and dimension of the site, including the minimum and maximum size of facilities that could be built. This ensures that the zone can accommodate the scale of modern hyperscale or mid-scale data centres.
Energy Grid Capacity (Article 10(1)(b)): A critical constraint for data centres is power. Authorities must evaluate both available and future power grid capacity. This includes assessing the possibility and conditions for on-site storage and clean energy generation. The proposal emphasises that "sufficient and timely energy supply to the acceleration zones constitutes a fundamental enabling condition for their effective deployment."
Network Connectivity (Article 10(1)(c)): Data centres require high-speed, low-latency connectivity. Authorities must consider available and future network connectivity capacity to ensure the zone can serve as a robust digital hub.
Legacy Network Phasing Out (Article 10(1)(d)): The designation must consider the zone's capacity to support the phasing out of legacy copper networks, aligning with broader EU digital infrastructure goals.
Waste Heat Reuse (Article 10(1)(e)): Sustainability is a core objective. Authorities must identify available and future facilities that can reuse data centre waste heat, turning a byproduct into a resource for district heating or industrial processes.
Permitting Acceleration (Article 10(1)(f)): The zone must be an area where measures have been taken to accelerate the granting of necessary permits for constructing and operating data centres. This ties into the broader CADA goal of reducing permitting timelines to 12 months for projects in these zones (Article 13).
Brownfield Preference (Article 10(1)(g)): The proposal explicitly mandates a "preference for reusing brownfield sites over using greenfield sites." This aims to minimise environmental impact and urban sprawl by repurposing existing industrial or commercial lands.
Sustainability and Climate Resilience (Article 10(1)(h)): Finally, the site must be able to function sustainably, particularly regarding the prevention or minimisation of environmental impacts, reduction of carbon emissions, and climate resilience.

Operational Conditions Within Acceleration Zones

Once a zone is designated, specific operational conditions apply to ensure fair competition and high environmental standards. Article 11 of the CADA proposal sets out these conditions.

Sustainability Requirements Member States must use specific key performance indicators (KPIs) when setting sustainability requirements for data centres deployed in acceleration zones. Article 11(1) states: "When 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 references the existing EU rating scheme for data centres, which covers metrics such as Power Usage Effectiveness (PUE), Water Usage Effectiveness (WUE), and carbon emissions. By mandating these KPIs, CADA ensures that "acceleration" does not come at the cost of environmental degradation. It is important to note that these specific KPIs are enumerated in the Delegated Regulation, not in the CADA text itself.

Fair Resource Allocation To prevent market distortion, Article 11(2) requires that "the allocation and use of resources within acceleration zones takes place on fair, reasonable and non-discriminatory terms." Crucially, this provision aims to "prevent speculative reservation or foreclosure practices capable of impeding effective competition or the effective development or use of those zones." This protects smaller EU providers and prevents large incumbents from hoarding land or grid capacity without deploying it.

Coordination and Energy Planning

The designation of acceleration zones is not an isolated administrative act. Article 10(2) requires Member States 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.

Furthermore, national network development plans prepared by transmission and distribution system operators must "take due account of the analysis" (Article 10(2)(b)). This ensures that grid planning is anticipatory, allowing for the necessary infrastructure upgrades to support the data centres before they are built. For Greece, this implies a close coordination between the Ministry of Digital Governance (or equivalent), the Regulatory Authority for Energy, and transmission system operators like IPTO.

What this means for you

For CTOs, architects, and SMEs evaluating the practical impact of CADA on their operations in Greece, the introduction of acceleration zones represents both a regulatory constraint and a strategic opportunity.

1. Site Selection Strategy If you are planning to deploy data centre capacity in Greece, your site selection process must align with the criteria in Article 10. Prioritise brownfield sites with existing grid connections and potential for waste-heat reuse. Demonstrating compliance with these criteria early in your planning phase can position your project favourably within a designated acceleration zone, potentially granting you access to streamlined permitting processes (Article 13) and single information points (Article 12).

2. Sustainability Compliance You must design your facilities to meet the KPIs from Delegated Regulation (EU) 2024/1364. This is not optional for projects in acceleration zones. Architects should integrate energy-efficient cooling, renewable energy integration, and waste-heat recovery systems into the initial design. Failure to meet these sustainability standards could jeopardise your project's eligibility or permit approval.

3. Competitive Landscape The "fair, reasonable and non-discriminatory" allocation of resources (Article 11(2)) is a protective measure for SMEs. If you are a smaller provider, this provision helps prevent larger hyperscalers from monopolising grid capacity or land in acceleration zones through speculative holding. You can expect a more level playing field, provided Greek authorities enforce these rules rigorously.

4. Engagement with Authorities Given the requirement for energy need analyses and grid planning coordination (Article 10(2)), early engagement with Greek energy regulators and grid operators is essential. You should be prepared to provide detailed data on your projected energy consumption and connectivity needs to help authorities integrate your project into their national development plans.

5. Timeline Awareness With the designation deadline set at six months after entry into force, Greek authorities will likely move quickly to identify and publish these zones. Stay informed on national announcements regarding the specific locations. Being present in an acceleration zone from the outset can provide significant administrative advantages, including access to the "aggregated baseline permit" mechanism which covers most permits for the zone, excluding only installation-specific ones (Article 13(2)).

Common misconceptions

Misconception 1: The EU will dictate the exact locations of acceleration zones in Greece. Reality: CADA does not prescribe specific geographic coordinates. Article 10 places the obligation on the Member State (Greece) to designate the zones. The EU sets the criteria and deadlines, but the strategic choice of location rests with national authorities, guided by the factors listed in Article 10(1)(a)–(h).

Misconception 2: Any data centre in Greece will automatically be in an acceleration zone. Reality: Acceleration zones are specific, designated areas. Data centres built outside these zones may not benefit from the streamlined permitting processes (Article 13) or the aggregated baseline permits. However, they are still subject to broader CADA requirements and national laws. The acceleration zone status is a privilege tied to specific strategic and sustainable criteria.

Misconception 3: Acceleration zones only focus on speed, ignoring sustainability. Reality: Sustainability is a core component of the acceleration zone concept. Article 11(1) mandates the use of strict EU-wide KPIs for sustainability. Furthermore, Article 10(1)(h) explicitly requires sites to be able to function sustainably, and Article 10(1)(e) requires consideration of waste-heat reuse. Speed is achieved through regulatory harmonisation and permitting acceleration, not by lowering environmental standards.

Misconception 4: Large providers will have exclusive access to acceleration zones. Reality: Article 11(2) explicitly prohibits speculative reservation and requires fair, reasonable, and non-discriminatory allocation of resources. This is designed to ensure that SMEs and new market entrants have access to the benefits of acceleration zones, preventing market foreclosure by incumbents.

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