Where will the data centre acceleration zones be in Sweden?

Under the proposed Cloud and AI Development Act (CADA), Sweden is required to designate at least one data centre acceleration zone within six months of the

Summary Under the proposed Cloud and AI Development Act (CADA), Sweden is required to designate at least one data centre acceleration zone within six months of the regulation's entry into force, provided that data centre capacity is being deployed on its territory (Article 10(1)). The specific geographic locations are not pre-determined by the EU; rather, Swedish authorities must select zones based on strict criteria, including available power grid capacity, network connectivity, waste-heat reuse potential, and a preference for reusing brownfield sites over greenfield ones (Article 10(1)(a)–(h)). These zones will operate under streamlined permitting processes and mandatory sustainability conditions, such as using key performance indicators from Delegated Regulation (EU) 2024/1364 (Article 11).

Detail

The Cloud and AI Development Act (CADA), as proposed in COM(2026) 502 final, introduces a harmonized EU framework to accelerate the deployment of sustainable and innovative computing capacity. For Sweden, a key market for cloud infrastructure, the most immediate operational impact lies in Title III, Chapter I, which establishes the regime for data centre acceleration zones. These zones are designed to address the Union's capacity gap and reduce dependencies on external infrastructures by enabling infrastructure deployment at scale and speed within a clear, streamlined regulatory framework (Recital 37).

Mandatory Designation and Timeline

Article 10(1) of CADA mandates that any Member State where data centre capacity is being deployed must designate at least one acceleration zone. For Sweden, this obligation triggers within six months of the regulation's entry into force. The designation is not optional if the condition of ongoing deployment is met. The purpose is to create a predictable environment for investors and operators, ensuring that the expansion of data centre capacity brings significant economic and strategic benefits while adhering to high environmental standards (Recital 37).

Selection Criteria: Where Will the Zones Be?

CADA does not prescribe specific cities, regions, or coordinates. Instead, Article 10(1) provides a comprehensive list of aspects that Swedish authorities must consider when designating these zones. This gives national and regional planners discretion, but constrains them to select sites that meet specific technical, environmental, and strategic standards. The criteria include:

Grid and Energy Capacity: Authorities must consider available and future power grid capacity, as well as the possibility and conditions for on-site storage and clean energy generation (Article 10(1)(b)). Recital 38 emphasizes that reliable and accurate information on future energy demand is crucial for cost-effective grid development. Member States must prepare an analysis for each zone to identify current and future energy needs, which will feed into national network development plans.
Connectivity: The zone must have available and future network connectivity capacity (Article 10(1)(c)). This ensures that data centres can access the high-speed, gigabit and beyond connectivity required for modern AI and cloud workloads.
Waste-Heat Reuse: A critical sustainability factor is the availability of facilities that can reuse data centre waste heat (Article 10(1)(e)). This aligns with the EU's broader climate goals and encourages integration with district heating systems or industrial processes, turning a byproduct into a resource.
Brownfield Preference: Article 10(1)(g) explicitly states a preference for reusing brownfield sites over using greenfield sites. This aims to minimize environmental impact, preserve land, and reduce land-use conflicts.
Sustainability and Climate Resilience: The site must be able to function sustainably, particularly regarding preventing or minimizing environmental impacts, supporting the reduction of carbon emissions, and ensuring climate resilience (Article 10(1)(h)).
Permitting Acceleration: Authorities must consider measures taken to accelerate the granting of necessary permits for constructing and operating data centres within the zone (Article 10(1)(f)). This includes assessing the administrative efficiency of the local planning authorities.
Legacy Copper Networks: The zone's capacity to support the phasing out of legacy copper networks is also a factor (Article 10(1)(d)), promoting the transition to modern fiber and high-speed infrastructure.
Site Dimensions: Authorities must consider the location and dimension of the site or area, including the minimum and maximum size of facilities that could be built (Article 10(1)(a)).

Conditions Within Acceleration Zones

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

Sustainability KPIs: Article 11(1) requires Member States to use specific key performance indicators (KPIs) when setting sustainability requirements for data centres deployed in acceleration zones. Crucially, these KPIs are defined in Commission Delegated Regulation (EU) 2024/1364, pursuant to the Energy Efficiency Directive. This ensures consistent environmental standards across the EU, focusing on energy efficiency, water usage, and other metrics, rather than leaving them to vague national interpretations.

Fair Resource Allocation: 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 provision is explicitly designed to prevent speculative reservation of resources or foreclosure practices that could impede effective competition or the timely development of the zones. Authorities must ensure that access to the zone is not hoarded by a single operator without active development.

Strategic Projects and Permitting

Data centre projects deployed in acceleration zones benefit from significantly facilitated administrative processes under Article 13.

Strategic Project Status: Projects in these zones are considered strategic projects within the meaning of the Regulation on speeding-up environmental assessments (Article 13(1)). This grants them access to a dedicated toolbox for faster environmental assessments, ensuring coherence with high levels of protection for human health and the environment.
Aggregated Baseline Permit: Member States must prepare and issue an aggregated baseline permit for each designated acceleration zone (Article 13(2)). This permit covers the common permits and administrative authorisations required for data centre projects located within the zone, excluding installation-specific permits. This creates a "one-stop" approval for the zone itself.
12-Month Timeline: The permit-granting procedure for data centre projects deployed in data centre acceleration zones must not exceed 12 months from the moment a comprehensive application has been submitted (Article 13(5)). This time limit is a hard cap to ensure speed-to-market, though Member States may set shorter limits.
Single Information Points: To further assist operators, Article 12 requires Member States to designate single information points to assist data centre operators throughout the entire lifecycle of the project, coordinating spatial planning, environmental assessments, and utility connections.

What this means for you

For CTOs, architects, data centre operators, and SMEs evaluating investments in Sweden, the introduction of acceleration zones under CADA represents a shift toward greater regulatory predictability but also stricter sustainability and location constraints.

1. Site Selection Strategy Must Evolve You can no longer rely solely on traditional factors like low electricity costs or generic land availability. Under Article 10(1)(g), Swedish authorities will prefer brownfield sites. This means developers and operators should actively scout for repurposed industrial or commercial land rather than pristine greenfield locations. Additionally, Article 10(1)(e) highlights waste-heat reuse. Sites integrated with district heating networks or industrial parks that can consume excess heat will be prioritized. Your feasibility studies must now include detailed waste-heat recovery plans to align with the designation criteria.

2. Grid and Connectivity Due Diligence Article 10(1)(b) and (c) require zones to have robust future power grid and network connectivity capacity. Before committing to a site, verify that it is located within a designated acceleration zone with confirmed grid expansion plans. The Swedish Transmission System Operator (Svenska Kraftnät) and distribution system operators are required to integrate these energy needs into their network development plans (Article 10(2)(b)). Ensure your project's power requirements align with these anticipatory investments to avoid delays.

3. Faster Permitting, But Strict Compliance The 12-month permit-granting timeline in Article 13(5) is a significant advantage for speed-to-market. However, this speed comes with the prerequisite of meeting the sustainability KPIs from Delegated Regulation (EU) 2024/1364 (Article 11(1)). Non-compliance with these environmental standards could delay or jeopardize your project, even within an acceleration zone. Prepare your environmental impact assessments and sustainability reports early to align with the aggregated baseline permit framework.

4. Avoid Speculative Holds Article 11(2)'s requirement for fair, reasonable, and non-discriminatory resource allocation means that simply reserving land or power capacity without a concrete development plan may be challenged. Authorities will look for genuine intent to deploy capacity. Ensure your business cases are robust and your timelines realistic to avoid being flagged for speculative reservation practices, which could lead to the loss of access to the zone.

5. Engage with Single Information Points Once a zone is designated, leverage the single information point established under Article 12. These points are tasked with coordinating spatial planning, environmental assessments, and utility connections. Engaging early with these points can streamline the process and provide clarity on the specific requirements for your project within the zone.

Common misconceptions

Misconception 1: The EU will designate the specific locations in Sweden. Reality: CADA does not pick cities or regions. Article 10(1) provides criteria, but the designation is the responsibility of the Member State (Sweden). Swedish national and regional authorities will decide which areas meet the criteria for grid, connectivity, and sustainability.

Misconception 2: Acceleration zones apply to all data centres in Sweden. Reality: The accelerated permitting and specific conditions under Articles 10 and 11 apply only to data centre projects deployed within the designated acceleration zones. Data centres outside these zones may still face longer, less standardized permitting processes and are not automatically granted the 12-month timeline or the aggregated baseline permit.

Misconception 3: Brownfield sites are mandatory. Reality: Article 10(1)(g) states a preference for reusing brownfield sites over greenfield sites. It is not an absolute ban on greenfield development, but greenfield projects will need to demonstrate exceptional justification regarding sustainability, grid impact, or lack of suitable brownfield alternatives to be prioritized within the designation process.

Misconception 4: The sustainability KPIs are vague. Reality: Article 11(1) explicitly ties sustainability requirements to Commission Delegated Regulation (EU) 2024/1364. This regulation establishes a common EU rating scheme for data centres, providing concrete, measurable KPIs for energy efficiency, water usage, and other environmental metrics. Compliance is measurable and auditable, not subjective.

Misconception 5: The 12-month timeline is a guarantee. Reality: Article 13(5) sets a maximum limit of 12 months for the permit-granting procedure from the moment a comprehensive application has been submitted. If an application is incomplete or if the operator fails to provide necessary information, the clock may be paused or the application rejected. The timeline assumes a complete and compliant submission.

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