Summary Under the proposed Cloud and AI Development Act (CADA), the two designations would sit at different levels of government. Member States designate data centre acceleration zones within their territory (Article 10). The European Commission designates data centre strategic projects, selected through open calls for expressions of interest (Article 14). The split keeps local infrastructure planning — land, grid, spatial planning — with the Member States, while reserving Union-wide strategic prioritisation for the Commission. CADA is a proposal (COM(2026) 502 final), not yet in force.

Detail

CADA would introduce a framework to accelerate data centre deployment across the EU. A key distinction is between acceleration zones and strategic projects, which would be governed by different authorities and serve complementary purposes.

Member States designate acceleration zones (Article 10)

Responsibility for designating data centre acceleration zones would lie with the Member States. Under Article 10(1), 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 ... within its territory" by a deadline set at entry into force plus six months.

This is a national competence, reflecting that deployment depends on local factors. When designating zones, Member States must consider the aspects in Article 10(1)(a)–(h), including:

  • the location and dimension of the site, and the minimum and maximum facility sizes;
  • available and future power grid capacity, including on-site storage and clean energy generation;
  • available and future network connectivity capacity;
  • the zone's capacity to support phasing out legacy copper networks;
  • available facilities that can reuse data centre waste heat;
  • measures to accelerate permit-granting;
  • a preference for reusing brownfield over greenfield sites;
  • the ability of the site to function sustainably, minimising environmental impact and supporting carbon-emission reduction and climate resilience.

Under Article 10(2), where appropriate, Member States must also conduct (and review at least every three years) a comprehensive analysis of the energy needs and greenhouse-gas impacts of current and future zones, and ensure transmission and distribution system operators' network development plans take that analysis into account.

The logic is decentralised: Member States know their local constraints best, so they anchor acceleration in realistic local conditions.

The Commission designates strategic projects (Article 14)

By contrast, designating data centre strategic projects would be a Union-level competence of the Commission. Under Article 14(1), the Commission "may, by means of a decision, designate as strategic projects, data centre projects selected through open calls for expressions of interest that fulfil at least two of the following criteria":

  • the project supports and enhances essential public sector functions (e.g. research and education, healthcare, public safety and security);
  • it includes highly sustainable or innovative features, including technologies developed under Title II of CADA;
  • it contributes to the security, safety and stability of the electricity grid, in particular via colocation of large clean energy generation and storage;
  • it supports integration of chips, processors, accelerators, servers or quantum computers designed and/or manufactured in the Union, strengthening Union supply chains;
  • it addresses a major shortage of compute capacity in an area identified under Article 15 and contributes significantly to the local economy.

The logic is centralised: the Commission decides what is "strategic" for the Union as a whole, directing support toward projects of significant Union-added value. Where any support measures constitute State aid, they would apply without prejudice to Articles 107 and 108 TFEU.

Governance difference: local enablers vs strategic anchors

  1. Acceleration zones (national level): geographic areas designated by Member States to create a favourable environment for any data centre operator. They act as enablers — offering aggregated baseline permits (Article 13) and single information points (Article 12) to cut administrative friction across the board.
  2. Strategic projects (EU level): specific individual projects designated by the Commission. They act as anchors for strategic industrial policy, securing targeted support for high-impact projects.

This dual approach is meant to prevent fragmentation: Member States manage local infrastructure while the Commission oversees projects of Union-wide significance.

What this means for you

For public sector and procurement officers, the distinction matters in several ways:

  • Engage national authorities. If you plan to deploy or procure data centre services, identify the acceleration zones designated by your Member State under Article 10. These zones offer streamlined permitting and single information points (Article 12). Confirm the local sustainability and energy requirements with your national authority.
  • Spot strategic opportunities. For large-scale projects, consider whether the project could qualify as a strategic project under Article 14 — for instance by supporting essential public sector functions, integrating EU-made hardware, or addressing capacity shortages. Monitor the Commission's open calls for expressions of interest.
  • Procurement strategy. Projects in acceleration zones may benefit from faster permitting (subject to the 12-month limit in Article 13(5)), which can matter for time-sensitive deployments.
  • Compliance and sustainability. Member States must use the key performance indicators in Delegated Regulation (EU) 2024/1364 when setting sustainability requirements for data centres in acceleration zones (Article 11(1)). Align projects with national strategies and those KPIs.

Common misconceptions

  • "The Commission designates all accelerated data centre projects." No. The Commission only designates strategic projects (Article 14). Most data centres would be built in acceleration zones designated by Member States (Article 10). The Commission does not run local zoning or permitting.
  • "A project in an acceleration zone is automatically a strategic project." Not under Article 14. For Article 14 designation, a project must meet at least two of the listed criteria and be selected by the Commission. (Separately, Article 13(1) treats data centre projects in acceleration zones as "strategic projects" specifically for the purposes of the proposed environmental-assessment regulation — a different concept from Article 14 designation.)
  • "Member States can designate strategic projects." No. Under Article 14, the power to designate data centre strategic projects rests with the Commission. Member States and applicants can propose projects through open calls, but the decision is the Commission's.
  • "Acceleration zones are only for new greenfield sites." No. Article 10(1)(g) states a preference for reusing brownfield over greenfield sites.

Related

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