Summary Under the proposed Cloud and AI Development Act (CADA), Lithuania would be 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. The specific geographic locations are not pre-determined by EU law; instead, Lithuanian authorities must select sites based on strict criteria outlined in Article 10, including grid capacity, network connectivity, waste-heat reuse potential, and a preference for brownfield sites. Once designated, these zones would operate under accelerated permitting processes and specific sustainability conditions defined in Article 11, which mandates the use of Key Performance Indicators (KPIs) from Delegated Regulation (EU) 2024/1364 and ensures fair, reasonable, and non-discriminatory resource allocation.

Detail

The Cloud and AI Development Act (CADA), proposed by the European Commission on 3 June 2026 (COM(2026) 502 final), introduces a harmonised framework to accelerate the deployment of data centres across the EU. For Lithuania, a key mechanism in this framework is the establishment of data centre acceleration zones. These zones are not designated directly by the Commission but are the responsibility of Member States, guided by the mandatory provisions of CADA Title III.

The Obligation to Designate

Article 10 of CADA places a clear obligation on Member States where data centre capacity is being deployed. Specifically, Article 10(1) states that such Member States "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 once CADA enters into force, Lithuania would have a strict six-month window to identify and officially designate at least one zone. If Lithuania is actively deploying or planning to deploy data centre capacity, this designation is mandatory. The goal is to create clear, streamlined regulatory environments where infrastructure can be built at scale and speed, addressing the EU-wide shortage of compute capacity.

Criteria for Selecting Lithuanian Acceleration Zones

Lithuanian authorities would not have unlimited discretion in choosing these zones. Article 10(1) requires that the designation process considers specific aspects to ensure the zones are viable, sustainable, and strategically sound. When evaluating potential sites in Lithuania, the following criteria from Article 10(1)(a)–(h) must be weighed:

  • Site Characteristics: The location, dimension, and minimum/maximum size of facilities that could be built (Article 10(1)(a)).
  • Energy Grid Capacity: The available and future power grid capacity, including possibilities for on-site storage and clean energy generation (Article 10(1)(b)). This is critical for Lithuania, where grid stability and expansion are key constraints for large-scale data centres.
  • Network Connectivity: The available and future network connectivity capacity (Article 10(1)(c)).
  • Legacy Infrastructure: The capacity of the zone to support the phasing out of legacy copper networks (Article 10(1)(d)).
  • Waste Heat Reuse: The availability of facilities that can reuse data centre waste heat (Article 10(1)(e)). This aligns with broader EU energy efficiency goals, potentially linking data centres to district heating systems in Lithuanian cities.
  • 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)). This encourages the redevelopment of existing industrial areas rather than consuming new agricultural or natural land.
  • Sustainability and Climate Resilience: The ability of the site to function sustainably, particularly regarding environmental impact prevention, carbon emission reduction, and climate resilience (Article 10(1)(h)).

Energy Planning and Coordination

Article 10(2) further requires Member States to conduct a comprehensive analysis of the energy needs and greenhouse gas impacts of current and future acceleration zones. This analysis must be reviewed at least every three years. For Lithuania, this means that the national grid operator and distribution system operators would be required to integrate these data centre demands into their network development plans. This ensures that anticipatory investments are made to accommodate future system needs, preventing bottlenecks that could delay data centre operations.

Conditions Within the Zones

Once designated, the operation of these zones is governed by Article 11. This article imposes two primary conditions:

  1. Sustainability KPIs: Article 11(1) mandates that Member States use specific key performance indicators (KPIs) when setting sustainability requirements for data centres in acceleration zones. These KPIs are defined in Commission Delegated Regulation (EU) 2024/1364, pursuant to Directive (EU) 2023/1791. This ensures that data centres in Lithuanian acceleration zones meet consistent, high-level environmental standards regarding energy efficiency (e.g., Power Usage Effectiveness) and water usage.
  2. Fair Resource Allocation: Article 11(2) requires that the allocation and use of resources within acceleration zones take place on "fair, reasonable and non-discriminatory terms." This provision aims to prevent speculative reservation of resources or foreclosure practices that could impede effective competition or the development of the zone. For CTOs and operators, this suggests that Lithuania could not arbitrarily favour one provider over another in these designated zones; access to grid connections, land, and permits must be transparent and competitive.

Strategic Projects and Permitting

While Article 10 and Article 11 set the stage, the acceleration zones also benefit from the broader permitting simplifications in Article 13. Data centre projects in these zones would be considered "strategic projects" under the forthcoming Regulation on speeding-up environmental assessments. This grants them access to a "toolbox" for accelerated environmental assessments. Furthermore, Article 13(2) requires Member States to issue an "aggregated baseline permit" for each acceleration zone, covering common permits and authorisations. This significantly reduces the administrative burden for individual data centre operators, as they would only need to obtain additional permits for activities outside this baseline.

What this means for you

For CTOs, architects, and SMEs evaluating the practical impact of CADA on operations in Lithuania, the designation of acceleration zones offers both opportunities and new compliance requirements.

1. Site Selection Strategy If you are planning to deploy new data centre capacity in Lithuania, you should prioritise sites that align with the Article 10 criteria. Specifically, look for brownfield sites with existing industrial infrastructure, as these are preferred by law. Ensure your site has access to robust grid capacity and potential for waste-heat reuse, as these are explicit factors in the designation process. Projects located outside designated acceleration zones may face longer permitting timelines and less regulatory certainty.

2. Sustainability Compliance Article 11(1) ties zone operations to the KPIs in Delegated Regulation (EU) 2024/1364. You must design your data centre infrastructure to meet these specific energy and resource efficiency metrics. This likely means investing in advanced cooling technologies, renewable energy sources, and waste-heat recovery systems. Failure to meet these sustainability standards could jeopardise your ability to operate within an acceleration zone.

3. Competitive Access The requirement for "fair, reasonable and non-discriminatory" resource allocation (Article 11(2)) is a safeguard for SMEs. It means that large incumbents cannot lock up grid capacity or land in a way that excludes smaller players. As an SME, you should monitor the Lithuanian authorities' implementation of these rules to ensure you have equitable access to the accelerated permitting and infrastructure benefits.

4. Timeline Awareness With the six-month designation deadline post-entry-into-force, the window for identifying and securing sites in the first wave of Lithuanian acceleration zones would be narrow. Early engagement with Lithuanian national and local authorities to understand their selection process and energy planning analysis (Article 10(2)) is crucial.

5. Permitting Efficiency Once in an acceleration zone, you would benefit from the aggregated baseline permit (Article 13(2)). This means much of the environmental and planning assessment is done at the zone level. Your focus can shift to site-specific construction and operational permits, significantly reducing time-to-market. However, you must still comply with all other EU and national laws, including the Data Act and GDPR.

Common misconceptions

Misconception 1: The EU Commission will choose the locations. Correction: No. CADA Article 10 places the obligation on Member States to designate the zones. The Commission sets the criteria and monitors compliance, but Lithuania's government and regional authorities would decide the specific geographic boundaries based on national energy and industrial strategies.

Misconception 2: Acceleration zones are only for large hyperscalers. Correction: Article 11(2) explicitly prohibits practices that impede effective competition. The zones are intended to boost overall EU capacity, and the "fair, reasonable and non-discriminatory" allocation of resources ensures that SMEs and mid-sized providers can access the accelerated permitting and infrastructure benefits.

Misconception 3: All data centres in Lithuania will be in acceleration zones. Correction: Article 10(1) requires "at least one" zone. Lithuania may designate more, but not all data centre capacity would necessarily be located within these zones. Data centres outside acceleration zones would still operate but may not benefit from the same level of permitting simplification and aggregated baseline permits.

Misconception 4: Sustainability requirements are optional or vague. Correction: Article 11(1) mandates the use of specific KPIs from Delegated Regulation (EU) 2024/1364. These are legally binding technical metrics, not voluntary guidelines. Data centres in acceleration zones must demonstrably meet these efficiency standards to operate.

Official sources

Related

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