Summary Under the proposed Cloud and AI Development Act (CADA), Spain 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. The specific geographic locations are not predetermined by EU law; instead, Spanish authorities must select sites based on strict, cumulative criteria set out in Article 10(1). These criteria include sufficient grid capacity, network connectivity, waste-heat reuse potential, and a mandatory preference for brownfield sites over greenfield ones. Once designated, data centres in these zones must adhere to sustainability Key Performance Indicators (KPIs) defined in Delegated Regulation (EU) 2024/1364 (Article 11) and benefit from streamlined permitting, though resource allocation must remain fair, reasonable, and non-discriminatory.

Detail

The Cloud and AI Development Act (CADA), as proposed in COM(2026) 502 final, establishes a harmonised EU framework designed to accelerate the deployment of data centre capacity while ensuring sustainability and reducing strategic dependencies. For Spain, a Member State with significant existing and planned data centre investment, the obligations are primarily codified in Article 10 and Article 11 of the proposal. These articles shift the focus from ad-hoc national planning to a structured, criteria-based designation process that prioritises energy efficiency and grid readiness.

The Obligation to Designate Acceleration Zones

Article 10(1) imposes a clear deadline and obligation on Member States. It mandates that any Member State where data centre capacity is being deployed must designate at least one "data centre acceleration zone" (referred to as an "acceleration zone") within its territory. This designation must be completed no later than six months after the entry into force of the regulation. Given Spain's active market for data centre investment, it will fall squarely within this requirement.

Crucially, the regulation does not specify where in Spain these zones must be located. The EU legislature intentionally left the geographic selection to national, regional, and local authorities to account for local grid realities and spatial planning constraints. However, this discretion is bounded by a rigorous set of factors that must be considered during the designation process. According to Article 10(1)(a)–(h), the designation must account for the following cumulative criteria:

  • Site Dimensions and Suitability: Authorities must assess the location, dimension, and the minimum and maximum size of facilities that could be built on the site (Article 10(1)(a)). This ensures the zone is sized appropriately for the scale of modern data centre projects.
  • Energy Grid Capacity: A critical factor is the availability of current and future power grid capacity, alongside the possibility and conditions for on-site storage and clean energy generation (Article 10(1)(b)). As data centres are energy-intensive, grid congestion is a primary bottleneck; the regulation prioritises sites where the grid can support immediate and future loads.
  • Network Connectivity: The zone must demonstrate the availability of current and future network connectivity capacity (Article 10(1)(c)). Low-latency and high-bandwidth connections are prerequisites for competitive cloud and AI services, making this a non-negotiable criterion.
  • Legacy Network Phasing Out: The designation must consider the zone's capacity to support the phasing out of legacy copper networks (Article 10(1)(d)), aligning with broader digital infrastructure modernisation goals.
  • Waste Heat Reuse: Authorities must evaluate the availability of facilities that can reuse data centre waste heat (Article 10(1)(e)). This criterion directly supports the EU's energy efficiency and circular economy objectives.
  • Permitting Acceleration Measures: The zone must be supported by "all the measures taken to accelerate the granting of the necessary permits" for construction and operation (Article 10(1)(f)). This ensures the zone is not just a geographic label but a functional administrative zone.
  • Brownfield Preference: There is an explicit preference for reusing brownfield sites (previously developed land) over using greenfield sites (Article 10(1)(g)). This aims to minimise environmental impact, preserve biodiversity, and reduce urban sprawl.
  • Sustainability and Climate Resilience: Finally, the site must demonstrate the ability to function sustainably, particularly regarding preventing or minimising environmental impacts, supporting the reduction of carbon emissions, and ensuring climate resilience (Article 10(1)(h)).

Coordination and Energy Planning

The designation of a zone is not a one-off event but part of a continuous planning cycle. Article 10(2) requires Spain to conduct a comprehensive analysis of the energy needs and their respective impacts on greenhouse gas emissions for both current and future acceleration zones. This analysis must be reviewed at least every three years.

The results of this analysis are not merely for internal reporting; they must feed directly into national network development plans prepared by transmission system operators (TSOs) and distribution system operators (DSOs). This ensures that grid investments are anticipatory rather than reactive, aligning infrastructure expansion with the specific needs of the designated zones.

Furthermore, Article 10(3) requires that spatial and development plans prepared by national, regional, and local authorities include provisions for the development of data centre projects in these zones. This ensures that local zoning laws do not inadvertently block the deployment of critical infrastructure. Article 10(4) emphasises the need for coordination among all relevant authorities, including TSOs, DSOs, and network operators, to facilitate the smooth development of these zones.

Conditions Within Acceleration Zones

Once a zone is designated, the operation of data centres within it is governed by Article 11. This article sets two binding conditions that distinguish acceleration zones from standard deployment areas:

  1. Sustainability KPIs: When setting sustainability requirements for data centres deployed in acceleration zones, Member States must use the key performance indicators (KPIs) specified in Delegated Regulation (EU) 2024/1364, adopted pursuant to the Energy Efficiency Directive (Article 11(1)). This ensures a harmonised, EU-wide standard for measuring energy efficiency (PUE), water usage (WUE), and other environmental metrics. CADA does not invent new KPIs; it mandates the use of the existing Delegated Regulation to ensure consistency.
  2. Fair Access and Non-Discrimination: 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 a critical safeguard designed to prevent speculative reservation of land or resources by dominant market players. It specifically aims to avoid "foreclosure practices" that could impede the effective competition or the timely development of the zones.

Strategic Projects and Permitting Benefits

While Article 10 and Article 11 define the "where" and "how," the broader context of CADA includes significant procedural benefits for projects within these zones. Projects deployed in acceleration zones are automatically considered "strategic projects" within the meaning of the environmental assessment regulation (Article 13(1)), granting them access to a dedicated acceleration toolbox.

Under Article 13(2), Member States must prepare an "aggregated baseline permit" for each designated zone. This permit covers the common permits required for data centre projects within the zone, excluding only installation-specific permits. This mechanism significantly reduces administrative burden. Furthermore, Article 13(5) sets a strict cap: the permit-granting procedure for data centre projects in acceleration zones must not exceed 12 months from the submission of a comprehensive application.

What this means for you

For CTOs, real estate developers, architects, and SMEs evaluating the practical impact of CADA in Spain, the designation of acceleration zones represents a fundamental shift in site selection strategy.

Site Selection Strategy: You cannot simply choose any location in Spain for a new data centre and expect streamlined processing. To benefit from the accelerated permitting and regulatory clarity of CADA, your site selection must align with the designated acceleration zones. When evaluating potential sites, prioritise those that meet the Article 10(1) criteria:

  • Grid Proximity: Ensure the site has confirmed access to sufficient power grid capacity. The requirement for anticipatory grid investment (Article 10(2)) suggests that zones with pre-validated grid connections will be the primary focus of Spanish authorities. Sites without grid capacity will likely be excluded.
  • Brownfield Potential: Sites on brownfield land may receive preferential treatment due to the explicit preference in Article 10(1)(g). This could translate into faster environmental assessments and less local opposition compared to greenfield sites.
  • Waste Heat Infrastructure: If your data centre design includes waste heat recovery systems, locating in a zone with existing or planned facilities for heat reuse (Article 10(1)(e)) will strengthen your case for designation and compliance.

Compliance and Sustainability: Architects and engineers must design data centres to meet the KPIs from Delegated Regulation (EU) 2024/1364 (Article 11(1)). This means energy efficiency is not just a "best practice" or a marketing claim but a regulatory requirement for operating in an acceleration zone. Your technical specifications must demonstrate compliance with these metrics to avoid delays or rejection.

Competitive Landscape: The requirement for fair, reasonable, and non-discriminatory resource allocation (Article 11(2)) is a double-edged sword. On one hand, it prevents dominant players from hoarding resources or land within the zone. On the other, it means you must compete openly for space and grid connections. SMEs should monitor the allocation processes closely to ensure they are not excluded by speculative practices, although the regulation explicitly aims to prevent such foreclosure.

Timeline Planning: With the six-month deadline for designation (Article 10(1)), Spanish authorities will move quickly to identify these zones. Engage with local and regional authorities early to understand which areas are being considered. Participating in the stakeholder consultations mentioned in the recitals may provide insight into upcoming designations.

Common misconceptions

Misconception 1: CADA dictates exactly where data centres must be built. Reality: CADA sets the criteria for designation but does not specify geographic coordinates. Spanish authorities have discretion in choosing sites, provided they meet the requirements of Article 10(1). The locations will vary based on local grid capacity, connectivity, and sustainability goals.

Misconception 2: All data centres in Spain will be in acceleration zones. Reality: CADA requires the designation of at least one acceleration zone per Member State deploying capacity. It does not mandate that all data centres be located in these zones. However, projects outside these zones may face longer permitting times and less regulatory support, making acceleration zones the preferred choice for new deployments.

Misconception 3: Acceleration zones guarantee automatic permits. Reality: While Article 13 introduces an "aggregated baseline permit" for the zone, individual projects still need to obtain additional permits for activities falling outside this baseline. The 12-month cap on permit-granting procedures (Article 13(5)) is a significant improvement, but it is not an automatic approval. Projects must still comply with all applicable environmental and technical standards.

Misconception 4: Greenfield sites are preferred for new data centres. Reality: Article 10(1)(g) explicitly states a preference for reusing brownfield sites over greenfield sites. This reflects the EU's commitment to sustainable land use and environmental protection. Proposals for greenfield sites may face higher scrutiny or need to demonstrate exceptional justification.

Related

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