Summary Under the proposed Cloud and AI Development Act (CADA), Slovakia is legally 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. As proposed, the EU does not pre-select these locations; rather, Slovak authorities must identify them based on strict criteria including grid capacity, network connectivity, waste-heat reuse potential, and a preference for brownfield sites. While CADA sets the framework and deadlines, the specific geographic locations remain to be determined by national authorities through spatial planning and energy assessments. Once designated, data centres in these zones must meet sustainability Key Performance Indicators (KPIs) from Delegated Regulation (EU) 2024/1364 and operate under fair, reasonable, and non-discriminatory resource allocation rules.

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 sustainable computing infrastructure. For Slovakia, as for all Member States, the core mechanism for this acceleration is the designation of data centre acceleration zones. These zones are not merely symbolic; they are legal instruments designed to streamline permitting, ensure energy security, and enforce high sustainability standards.

The Obligation to Designate

Article 10(1) of CADA establishes a clear and binding obligation: where data centre capacity is being deployed within the territory of a Member State, that Member State must designate at least one acceleration zone. The deadline for this designation is strict: it must occur within six months of the entry into force of the regulation.

This means that once CADA enters into force, Slovakia has a narrow window to identify and legally designate these zones. The designation is not optional if the country is actively deploying data centre capacity. The goal is to create designated areas where the regulatory burden is significantly reduced, and infrastructure support is prioritised. As stated in the proposal, these zones should contribute to addressing the Union capacity gap and increasing the Union's competitiveness, autonomy, and technological resilience.

Criteria for Designation: What Makes a Zone?

Slovak authorities cannot designate an acceleration zone arbitrarily. Article 10(1) outlines eight specific aspects that must be considered when designating these zones. For CTOs, architects, and investors evaluating potential sites in Slovakia, these criteria define the viability of a location:

  1. Site Dimensions and Facility Size: Authorities must consider the location and dimension of the site, as well as the minimum and maximum size of the facilities that could be built there (Article 10(1)(a)).
  2. Power Grid Capacity: A critical factor is the available and future power grid capacity, including the possibility and conditions for on-site storage and clean energy generation (Article 10(1)(b)). Without sufficient grid headroom, an acceleration zone cannot function.
  3. Network Connectivity: The zone must have available and future network connectivity capacity (Article 10(1)(c)). This is vital for low-latency AI workloads and general cloud services.
  4. Legacy Network Phasing Out: The capacity of the zone to support the phasing out of legacy copper networks is a consideration (Article 10(1)(d)). This implies a push towards modern, fibre-based infrastructure.
  5. Waste Heat Reuse: Authorities must consider the available and future facilities that can reuse data centre waste heat (Article 10(1)(e)). This criterion links data centre deployment directly to urban heating solutions and broader energy efficiency goals.
  6. Permitting Acceleration: The designation must include measures to accelerate the granting of necessary permits for constructing and operating data centres within the zone (Article 10(1)(f)).
  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 sustainability goals, aiming to minimise land-use change and environmental disruption.
  8. 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 (Article 10(1)(h)).

Energy Planning and Grid Integration

Beyond the initial designation, Article 10(2) imposes ongoing duties on Slovakia. Member States must conduct a comprehensive analysis of the energy needs and greenhouse gas emission impacts of current and future acceleration zones. This analysis must be reviewed at least every three years.

Crucially, this energy analysis must feed into national grid planning. Transmission system operators and distribution system operators must take this analysis into account when preparing their network development plans. This ensures that grid investments are anticipatory, accommodating future system needs rather than reacting to them. For operators, this suggests that once a zone is designated, grid connection processes should theoretically be smoother, as the infrastructure planning has already been coordinated.

Conditions Within Acceleration Zones

Once designated, the operation of data centres within these zones is subject to specific conditions under Article 11.

Sustainability KPIs: Article 11(1) mandates that when setting sustainability requirements for data centres in acceleration zones, Member States must use the key performance indicators (KPIs) specified in Commission Delegated Regulation (EU) 2024/1364. This regulation, adopted under the Energy Efficiency Directive, establishes a common Union rating scheme for data centres. This means Slovak data centres in acceleration zones will be measured against EU-wide metrics for energy efficiency (such as Power Usage Effectiveness), water usage, and carbon emissions. It is important to note that these KPIs are defined in the Delegated Regulation, not enumerated directly in the CADA text itself.

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 is designed to prevent speculative reservation of resources or foreclosure practices that could impede effective competition. For SMEs and new market entrants, this provision is significant; it aims to ensure that large incumbents cannot hoard grid capacity or land rights in these accelerated zones, blocking competitors from entering the market.

Strategic Projects and Further Acceleration

While Article 10 focuses on the zones themselves, Article 14 allows the Commission to designate specific data centre projects as strategic projects if they meet certain criteria (e.g., supporting essential public sector functions, high sustainability, or addressing major capacity shortages). Projects in acceleration zones may qualify for this status, which could unlock additional support measures and further streamlined procedures under other EU frameworks, such as the proposed regulation on speeding up environmental assessments.

What this means for you

For CTOs, architects, and SMEs evaluating the practical impact of CADA on operations in Slovakia, the implications are twofold: opportunity and compliance burden.

1. Site Selection Strategy If you are planning to deploy or expand data centre capacity in Slovakia, you must align your site selection with the Article 10 criteria.

  • Prioritise Brownfields: Given the preference for brownfield sites (Article 10(1)(g)), evaluating existing industrial estates or underutilised commercial zones may offer a faster path to designation or inclusion within a designated zone. Greenfield projects may face higher scrutiny regarding environmental impact.
  • Grid and Connectivity are King: Your feasibility study must heavily weigh available grid capacity and network connectivity (Article 10(1)(b) and (c)). An acceleration zone is only viable if the underlying infrastructure exists or is already planned for. Engage early with local distribution system operators to understand grid headroom.
  • Waste Heat Integration: Design your cooling systems with waste heat reuse in mind (Article 10(1)(e)). Integrating with local heating networks not only meets the designation criteria but may also improve your sustainability rating under Delegated Regulation (EU) 2024/1364, potentially making your facility more attractive for public procurement under CADA's sovereignty framework.

2. Permitting Expectations The promise of acceleration zones is faster permitting. Article 10(1)(f) requires measures to accelerate permit granting. In practice, this should mean a more predictable timeline for obtaining construction and operational permits. However, this is contingent on the zone being properly designated and the national authorities implementing the streamlined processes. Monitor the Slovak designation process closely once CADA enters into force.

3. Competition and Market Access Article 11(2)'s requirement for fair, reasonable, and non-discriminatory resource allocation is a safeguard for SMEs. It prevents dominant players from locking up all available power or land in the acceleration zones. If you are a smaller provider, this provision supports your ability to secure the resources needed to compete. However, you must still meet the strict sustainability KPIs from Delegated Regulation (EU) 2024/1364. Ensure your technical architecture is designed to meet these efficiency standards from the outset, as non-compliance could block your entry into these accelerated zones.

4. Timeline Awareness The six-month deadline for designation (Article 10(1)) is short. If you are in the early stages of planning, be aware that the specific zones may not be officially designated until some time after CADA's entry into force. Start engaging with local authorities and grid operators now to identify potential sites that meet the Article 10 criteria, so you are ready to act as soon as the zones are legally established.

Common misconceptions

Misconception 1: The EU will choose the specific locations in Slovakia. Reality: No. CADA does not pre-select geographic locations. Article 10 places the obligation on the Member State (Slovakia) to designate the zones. The EU sets the criteria (Article 10(1)(a)-(h)), but the Slovak authorities decide which specific sites meet those criteria and are suitable for designation.

Misconception 2: Acceleration zones automatically guarantee permits. Reality: Acceleration zones streamline the process and require measures to accelerate permit granting (Article 10(1)(f)), but they do not remove the need for permits. Data centre operators still must obtain necessary authorisations. However, the process is intended to be faster and more predictable, often linked to aggregated baseline permits or streamlined environmental assessments under related EU legislation.

Misconception 3: Any data centre can be built in an acceleration zone. Reality: No. Data centres in these zones must adhere to strict sustainability requirements using the KPIs from Delegated Regulation (EU) 2024/1364 (Article 11(1)). Furthermore, resource allocation must be fair and non-discriminatory (Article 11(2)). Projects that do not meet these sustainability and competitive fairness standards may not be supported or may face barriers to resource access.

Misconception 4: Brownfield sites are mandatory. Reality: Article 10(1)(g) states there should be a preference for reusing brownfield sites over greenfield sites. This is not an absolute ban on greenfield development, but it means that brownfield sites will likely be prioritised in the designation process and may face fewer regulatory hurdles regarding land-use change.

Related

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