Summary The proposed Cloud and AI Development Act (CADA) does not pre-select specific geographic coordinates for data centre acceleration zones in the Netherlands; that decision remains the exclusive competence of the Dutch government. However, under Article 10 of the proposal, the Netherlands is legally required to designate at least one acceleration zone within six months of the Regulation's entry into force, provided it is deploying data centre capacity. These zones must be selected based on strict, cumulative criteria including grid capacity, connectivity, waste-heat reuse potential, and a preference for brownfield sites. Once designated, operations within these zones must adhere to sustainability Key Performance Indicators (KPIs) from Delegated Regulation (EU) 2024/1364 and ensure fair, reasonable, and non-discriminatory resource allocation under Article 11.

Detail

The Cloud and AI Development Act (CADA), as proposed in COM(2026) 502 final, represents a significant shift in how the EU approaches the physical deployment of computing infrastructure. While the Regulation establishes a harmonised framework to address the Union's capacity gap and reduce dependencies on third-country providers, it respects the principle of subsidiarity regarding specific site selection. The Act does not map out specific zones itself. Instead, it mandates a rigorous framework within which national authorities, such as those in the Netherlands, must operate. For CTOs, infrastructure architects, and SMEs evaluating the practical impact on their expansion strategies, understanding the interplay between the EU-level mandates in Article 10 and Article 11 and national implementation is critical.

The Obligation to Designate: Article 10

Article 10 of the CADA proposal establishes the core obligation for Member States regarding the creation of data centre acceleration zones. The text is explicit: "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 occur by a deadline set at six months after the date of entry into force of the Regulation.

This means the Netherlands cannot opt out of creating these zones if it is actively deploying data centre capacity, which is a certainty given the country's status as a major European hub. The purpose of these zones is to enable infrastructure deployment at scale and speed within a clear and streamlined regulatory framework, addressing the EU-wide capacity gap and structural imbalances between Member States. The designation is not merely a formality; it triggers a suite of accelerated permitting and planning measures designed to overcome the bottlenecks currently facing the Dutch market.

Selection Criteria for Acceleration Zones

When the Dutch government identifies and designates these zones, it is not free to choose arbitrary locations. Article 10(1) of the proposal lists eight specific aspects that Member States must consider when designating acceleration zones. These criteria serve as a mandatory checklist for national planners to ensure that new zones contribute to the EU's broader goals of sustainability, resilience, and efficiency.

  1. Site Location and Dimensions: Authorities must consider the location, dimension, and the minimum and maximum size of facilities that could be built on the site or area [Article 10(1)(a)]. This ensures the zone is sized appropriately for the intended scale of deployment.
  2. Power Grid Capacity: A fundamental enabling condition is the availability of current and future power grid capacity, as well as the possibility and conditions for on-site storage and clean energy generation [Article 10(1)(b)]. This is particularly critical in the Netherlands, where grid congestion has historically been a primary bottleneck for data centre expansion. The zone must be viable from an energy supply perspective.
  3. Network Connectivity: The available and future network connectivity capacity must be assessed [Article 10(1)(c)]. This ensures that acceleration zones are not just energy-rich but also digitally connected, supporting the low-latency requirements essential for AI and cloud workloads.
  4. Legacy Copper Phasing Out: The zone's capacity to support the phasing out of legacy copper networks is a required consideration [Article 10(1)(d)]. This aligns with broader EU digital infrastructure goals to modernise telecommunications networks and improve overall network quality.
  5. Waste Heat Reuse: Authorities must evaluate the available and future facilities that can reuse data centre waste heat [Article 10(1)(e)]. Given the Netherlands' dense urban environment and significant heating demands, this criterion is particularly relevant for integrating data centres into local energy ecosystems, turning a waste product into a community asset.
  6. Permit Acceleration: The designation must account for all measures taken to accelerate the granting of necessary permits for constructing and operating data centres within the zone [Article 10(1)(f)]. This links directly to the streamlined permitting processes outlined later in Title III of the Regulation, ensuring the "acceleration" in the name is real.
  7. Brownfield Preference: There is an explicit preference for reusing brownfield sites over using greenfield sites [Article 10(1)(g)]. This reflects the EU's environmental priorities, aiming to minimise land-use change and preserve natural habitats, a key concern in the densely populated Netherlands.
  8. Sustainability and Climate Resilience: Finally, the site's ability to function sustainably must be assessed, particularly regarding preventing or minimising 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 obligations on Member States to facilitate the development of these zones. The Netherlands will be required to conduct, and review at least every three years, a comprehensive analysis of the energy needs and their respective impacts on greenhouse gas emissions of current and future acceleration zones. This analysis must identify the required energy infrastructure capacity for the proper functioning of data centre projects located within these zones.

Furthermore, Member States must ensure that network development plans prepared by transmission and distribution system operators take due account of this analysis. This mandates a proactive approach to grid planning, ensuring that anticipatory investments are made to accommodate future system needs. For architects and developers, this suggests that future data centre projects in Dutch acceleration zones will have a clearer, albeit coordinated, path to grid connection, provided the national planning aligns with the EU's anticipatory investment requirements.

Conditions Within Acceleration Zones: Article 11

Once designated, the operation of acceleration zones is governed by Article 11 of the proposal, which sets two primary conditions: sustainability standards and fair resource allocation. These conditions ensure that the "acceleration" does not come at the expense of environmental integrity or market fairness.

Sustainability KPIs

Article 11(1) mandates that when setting sustainability requirements for data centres deployed in acceleration zones, Member States must use the key performance indicators (KPIs) specified in Commission Delegated Regulation (EU) 2024/1364, pursuant to Directive (EU) 2023/1791. These KPIs, which cover aspects such as Power Usage Effectiveness (PUE), water usage effectiveness, and carbon emissions, ensure consistent environmental standards across the Union.

It is crucial to note that these KPIs are not enumerated in CADA itself but are referenced from the Delegated Regulation. For operators, this means that sustainability is not a voluntary best practice but a regulatory requirement tied to the designation of the zone. Compliance with these specific EU-level KPIs will likely become a standard part of the permitting and operational reporting process in the Netherlands. Failure to meet these standards could jeopardise the status of a project within the acceleration zone.

Fair, Reasonable, and Non-Discriminatory Access

Article 11(2) addresses market competition and access. Member States must ensure that the allocation and use of resources within acceleration zones takes place on "fair, reasonable and non-discriminatory terms." The provision explicitly states that this must not give rise to speculative reservation or foreclosure practices capable of impeding effective competition or the effective development or use of those zones.

This clause is designed to prevent scenarios where large incumbents lock up land, grid connections, or fibre capacity without building, thereby blocking SMEs or new market entrants. For SMEs evaluating the Dutch market, this offers a layer of protection against market distortion, ensuring that acceleration zones remain accessible to a diverse range of operators, provided they can meet the technical and sustainability criteria.

Single Information Points and Permitting

While Articles 10 and 11 focus on the zones themselves, the practical benefit for operators comes from the accompanying administrative reforms. Article 12 requires Member States to designate single information points for data centre operators in these zones. These points assist throughout the entire lifecycle of the project, coordinating spatial planning, building permits, environmental assessments, and grid connections.

Article 13 further facilitates this by requiring that data centre projects in acceleration zones benefit from an "aggregated baseline permit." This permit covers the authorisations commonly required for such activities within the area, excluding installation-specific permits. The goal is to reduce the permitting timeline to a maximum of 12 months from the submission of a comprehensive application. For the Netherlands, this represents a significant shift from current fragmented permitting processes, promising faster time-to-market for projects located within designated acceleration zones.

What this means for you

For CTOs and infrastructure architects, the designation of acceleration zones in the Netherlands under the proposed CADA signals a move towards more predictable, albeit regulated, infrastructure deployment. If your organisation is planning to build or expand data centre capacity in the Netherlands, you should monitor the Dutch government's upcoming designations, which must occur within six months of the Regulation's entry into force. Prioritising sites that align with the Article 10(1) criteriaβ€”particularly those with existing grid capacity, waste-heat reuse potential, and brownfield statusβ€”will likely position your projects favourably within the new regulatory framework.

For SMEs, the fair access provisions in Article 11(2) are a key safeguard. They aim to prevent resource hoarding by larger players, ensuring that you have a fair chance to access land, energy, and connectivity within these high-priority zones. However, you must also prepare for stricter sustainability reporting. Compliance with the KPIs from Delegated Regulation (EU) 2024/1364 will be mandatory for data centres in these zones, so integrating energy efficiency metrics into your design and operational planning from the outset is essential.

Architects should also note the emphasis on grid integration and waste-heat reuse. Designing facilities that actively contribute to local energy grids and district heating systems will not only meet regulatory expectations but may also facilitate faster permitting through the single information points and aggregated baseline permits described in Articles 12 and 13.

Common misconceptions

  • Misconception: CADA specifies exactly where acceleration zones will be located in the Netherlands.
    • Reality: CADA sets the obligation and criteria for designation but does not map specific zones. The Dutch government retains the authority to choose the locations, provided they meet the criteria in Article 10(1).
  • Misconception: Acceleration zones allow data centres to bypass environmental regulations.
    • Reality: On the contrary, Article 11(1) mandates strict adherence to EU sustainability KPIs from Delegated Regulation (EU) 2024/1364. Acceleration zones streamline permitting but do not lower environmental standards; they aim to deploy sustainable capacity faster.
  • Misconception: Only large hyperscalers can operate in acceleration zones.
    • Reality: Article 11(2) explicitly requires fair, reasonable, and non-discriminatory access, prohibiting speculative reservation or foreclosure practices that would impede effective competition. This is designed to keep the market open to SMEs and new entrants.
  • Misconception: The Netherlands can choose not to designate any zones.
    • Reality: Article 10(1) states that where data centre capacity is being deployed, the Member State shall designate at least one zone. Given the Netherlands' active data centre market, this obligation is likely to apply.

Related

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