Where will the data centre acceleration zones be in Romania?

Summary As proposed, the Cloud and AI Development Act (CADA) does not pre-select specific geographic locations for data centre acceleration zones in Romania. Instead, Article 10 places the obligation on the Romanian government to designate at least one such zone within six months of the Regulation's entry into force, provided data centre capacity is being deployed. These zones must be selected based on strict criteria including grid capacity, network connectivity, waste-heat reuse potential, and a preference for brownfield sites. Once designated, Article 11 mandates that sustainability requirements rely on key performance indicators (KPIs) from Delegated Regulation (EU) 2024/1364, while resource allocation must remain fair, reasonable, and non-discriminatory.

Detail

The proposed Cloud and AI Development Act (CADA), COM(2026) 502 final, aims to address the Union's critical shortage of computing capacity by harmonising and accelerating the deployment of data centres across Member States. For Romania, as for all Member States, this introduces a mandatory framework for creating "data centre acceleration zones." These zones are not voluntary pilot projects; they are regulatory instruments designed to streamline permitting, ensure sustainability, and guarantee that infrastructure development aligns with national energy and digital strategies.

Mandatory Designation and Timeline

Under Article 10(1) of the proposed Regulation, any Member State where data centre capacity is being deployed must designate at least one data centre acceleration zone. The deadline for this designation is strict: it must occur within six months of the Regulation's entry into force. For Romania, this means that once CADA is adopted and enters into force, the relevant national authorities (likely a combination of the Ministry of Digital Transformation, the Ministry of Energy, and local planning authorities) will have a narrow window to identify and officially designate these zones.

The designation is conditional on the fact that data centre capacity is actually being deployed in the territory. If Romania is actively deploying capacity, the obligation triggers immediately. The proposal does not prescribe a specific number of zones beyond "at least one," leaving room for Member States to designate multiple zones if their geographic and industrial strategy requires it. However, the primary goal is to create clear, regulated areas where the rules for building and operating data centres are predictable and accelerated.

Selection Criteria: What Makes a Zone?

Article 10(1) provides a detailed list of eight specific aspects that Member States must consider when designating these acceleration zones. These criteria are designed to ensure that new data centres are sustainable, resilient, and integrated into the broader infrastructure ecosystem. Romanian authorities will be required to evaluate potential sites against the following factors:

Site Location and Dimension: Authorities must consider the location and size of the site, as well as the minimum and maximum size of facilities that could be built there. This ensures that the zone is physically capable of hosting significant infrastructure.
Power Grid Capacity: A critical factor is the available and future power grid capacity. Romania must assess whether the local grid can support the high energy demands of data centres. This includes considering the possibility and conditions for on-site storage and clean energy generation.
Network Connectivity: The available and future network connectivity capacity is essential. Data centres require low-latency, high-bandwidth connections. The designation must account for existing fibre infrastructure and future expansion plans.
Legacy Network Phasing Out: The zone's capacity to support the phasing out of legacy copper networks is a consideration, aligning with broader EU digital connectivity goals.
Waste-Heat Reuse: Authorities must identify available and future facilities that can reuse data centre waste heat. This is a key sustainability metric, turning a byproduct of computing into a resource for district heating or industrial processes.
Permitting Acceleration: The designation must consider all measures taken to accelerate the granting of necessary permits for constructing and operating data centres within the zone. This links directly to the streamlined administrative processes outlined in Article 13.
Brownfield Preference: There is an explicit preference for reusing brownfield sites (previously developed land) over using greenfield sites (undeveloped land). This aims to minimise environmental impact and promote urban regeneration.
Sustainability and Climate Resilience: The site must be able to function sustainably, particularly regarding preventing or minimising environmental impacts, supporting the reduction of carbon emissions, and ensuring climate resilience.

Energy Planning and Coordination

Beyond the initial designation, Article 10(2) requires Romania to conduct a comprehensive analysis of the energy needs of current and future acceleration zones. This analysis must include an assessment of the impact on greenhouse gas emissions and identify the required energy infrastructure capacity. This analysis is not a one-time exercise; it must be reviewed at least every three years.

Crucially, this analysis must feed into national network development plans. Transmission system operators and distribution system operators must take this data into account when planning grid investments. This ensures that the power grid is proactively upgraded to accommodate the data centres, rather than reacting after construction has begun. This coordination is vital for avoiding bottlenecks that have plagued data centre deployments in other parts of Europe.

Conditions Within Acceleration Zones

Once designated, the zones are subject to specific conditions under Article 11.

First, sustainability requirements for data centres deployed in these zones must use the key performance indicators (KPIs) specified in Commission Delegated Regulation (EU) 2024/1364, which implements the Energy Efficiency Directive. These KPIs cover metrics such as Power Usage Effectiveness (PUE) and Water Usage Effectiveness (WUE). It is important to note that these specific KPIs are enumerated in the Delegated Regulation, not in the CADA text itself.

Second, Article 11(2) mandates that the allocation and use of resources within acceleration zones must take place on fair, reasonable, and non-discriminatory terms. This is designed to prevent speculative reservation of resources, where companies might hoard land or power capacity without building, thereby foreclosing competition. It ensures that the zones remain accessible to a diverse range of operators, including smaller EU-based providers.

What this means for you

For CTOs, architects, and SMEs evaluating the practical impact of CADA on their operations in Romania, the introduction of data centre acceleration zones offers both opportunities and constraints.

Predictability and Speed

The primary benefit is predictability. By designating specific zones, Romania creates areas where the regulatory framework is clear and permitting processes are streamlined. Article 13, which works in tandem with Article 10, establishes that permit-granting procedures for data centre projects in these zones should not exceed 12 months from the submission of a comprehensive application. This is a significant acceleration compared to traditional permitting timelines, which can often drag on for years. For businesses planning new infrastructure, this reduces time-to-market and financial uncertainty.

Strategic Site Selection

If you are planning to deploy new compute capacity, you should prioritise sites within these designated acceleration zones. Operating outside these zones may mean facing longer permitting times and less certainty regarding grid connectivity and sustainability compliance. The preference for brownfield sites means that developers should look for opportunities in existing industrial areas or repurposed facilities, rather than seeking out greenfield locations, which may face greater regulatory resistance.

Sustainability as a Barrier to Entry

The sustainability requirements are not optional. You must design your data centres to meet the KPIs set out in Delegated Regulation (EU) 2024/1364. This means investing in energy-efficient cooling technologies, renewable energy sources, and waste-heat recovery systems from the outset. Failure to meet these standards could result in denied permits or exclusion from the acceleration zone benefits.

Grid and Connectivity Planning

Because the designation process requires a comprehensive energy analysis, you can expect that zones with the best grid capacity and connectivity will be prioritised. However, this also means that competition for these high-quality sites will be intense. Early engagement with local authorities and grid operators is essential to secure your place in the development pipeline.

Competition and Fair Access

The requirement for fair, reasonable, and non-discriminatory resource allocation is a positive for SMEs. It prevents large incumbents from monopolising land and power capacity through speculative holds. This creates a more level playing field, allowing smaller players to access the infrastructure they need to compete. However, it also means that you must demonstrate a genuine commitment to building and operating, as speculative behaviour will be curtailed.

Common misconceptions

"CADA chooses the locations." This is incorrect. The EU proposal sets the framework and criteria, but the actual designation of zones is the responsibility of the Romanian government. The specific locations will depend on national and regional planning decisions.

"All data centres must be in acceleration zones." The proposal does not explicitly ban data centre deployment outside of acceleration zones. However, the streamlined permitting and coordinated infrastructure planning are only guaranteed within these zones. Deploying outside may be possible but will likely be slower and more complex.

"Brownfield preference means greenfield is banned." The proposal states a "preference" for brownfield sites, not an absolute ban on greenfield development. However, greenfield projects will face higher scrutiny regarding environmental impact and sustainability.

"The zones are ready to build immediately." The designation is just the first step. The comprehensive energy analysis and grid planning required by Article 10(2) must be completed, and the aggregated baseline permits issued by Article 13 must be prepared. There will be a lead time before construction can commence.

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