Summary As proposed in the Cloud and AI Development Act (CADA), Member States cannot designate data centre acceleration zones in isolation. Article 10(4) explicitly mandates the involvement and coordination of all relevant national, regional, and local authorities alongside critical infrastructure operators. This includes electronic communications network operators, transmission system operators (TSOs), and distribution system operators (DSOs), as defined in the European Electronic Communications Code and the Electricity Directive. This coordination is a prerequisite for ensuring that designated zones have the necessary energy and connectivity capacity to support rapid data centre deployment.

Detail

The Cloud and AI Development Act (CADA), as proposed in COM(2026) 502 final, introduces a harmonised framework to address the Union's data centre capacity gap. A central pillar of this framework is the creation of "data centre acceleration zones" (acceleration zones). These are specific geographical areas where Member States facilitate the development, expansion, and modernisation of data centres through streamlined permitting and enhanced infrastructure support.

However, the success of these zones relies on the physical reality of infrastructure. A zone cannot accelerate deployment if the local grid is congested or if fibre connectivity is absent. To prevent this, CADA imposes a strict procedural requirement on Member States regarding who must be consulted before a zone is officially designated.

The Legal Mandate: Article 10(4)

The core obligation is found in Article 10(4) of the proposal. This provision states that when designating acceleration zones, Member States "shall ensure the involvement of and coordination among all relevant national, regional and local authorities and entities."

The text does not leave this list to vague interpretation. It specifically enumerates four categories of infrastructure and regulatory stakeholders that must be part of this coordination process. This ensures that the designation of a zone is not merely a political decision but a technically grounded one, aligned with the realities of energy and digital networks.

1. Electronic Communications Network Operators

The first mandatory category is "operators as defined in Article 2, point (29), of Directive (EU) 2018/1972." This refers to the European Electronic Communications Code (EECC). These entities are responsible for providing publicly available electronic communications networks.

Their involvement is critical because data centres are data-hungry facilities that require high-speed, low-latency, and gigabit connectivity. By mandating their inclusion in the designation phase, CADA ensures that network rollout plans align with data centre deployment timelines. This prevents a scenario where a zone is designated for data centres but lacks the necessary fibre backbone, which would otherwise create a bottleneck for digital connectivity and undermine the zone's purpose.

2. Transmission System Operators (TSOs)

The second category is "transmission system operators as defined in Article 2, point (35), of Directive (EU) 2019/944." TSOs manage the high-voltage electricity grids that transport power across regions and countries.

Data centres are among the most energy-intensive facilities in the modern economy. Their deployment places significant strain on the transmission grid. Involving TSOs at the designation stage allows for accurate forecasting of future energy demand. This data is essential for informing national grid planning and enabling "anticipatory investments." Without TSO input, a Member State might designate a zone in an area where the grid lacks the physical capacity to support the required power loads, leading to immediate congestion and delays.

3. Distribution System Operators (DSOs)

The third category is "distribution system operators as defined in Article 2, point (29), of Directive (EU) 2019/944." DSOs manage the medium- and low-voltage networks that deliver electricity directly to end-users, including the data centres themselves.

Like TSOs, DSOs must be involved early. Their role is to ensure that the local distribution networks can handle the increased load from new data centre projects. Their input is vital for planning necessary upgrades to local substations and cabling. If DSOs are excluded from the designation process, the risk increases that a designated zone will face local grid constraints that cannot be resolved quickly, stalling the very acceleration CADA seeks to achieve.

4. Other Relevant Authorities

The fourth category is the broad group of "all relevant national, regional and local authorities." This encompasses the public bodies responsible for spatial planning, environmental protection, building permits, and waste heat reuse.

Article 10(3) reinforces the role of these authorities by requiring them to consider including provisions for data centre projects in their spatial and development plans. It further mandates that all relevant spatial planning data be made available to data centre operators. This creates a dual obligation: infrastructure operators (TSOs, DSOs, comms) must be consulted to validate technical feasibility, while planning authorities must integrate the zone's requirements into their broader territorial strategies.

The Functional Necessity of Coordination

The requirement for coordination in Article 10(4) is not merely an administrative formality; it is a functional prerequisite for the effectiveness of the acceleration zone. The CADA explanatory memorandum highlights that the lack of data centre capacity in the EU often forces enterprises to route workloads through foreign infrastructure. A significant portion of these delays is caused by fragmented infrastructure planning, particularly regarding energy and connectivity.

By mandating that TSOs, DSOs, and electronic communications operators are involved in the designation phase, CADA aims to achieve three specific outcomes:

  1. Align Infrastructure Investment: It ensures that grid and network upgrades are planned simultaneously with data centre permitting, rather than as a reactive measure after a project is approved. This synchronization is essential for "acceleration."
  2. Provide Reliable Information: It enables TSOs and DSOs to prepare accurate analyses of current and future energy needs. Article 10(2) requires Member States to conduct a comprehensive analysis of energy needs for each zone, and this analysis must be reflected in national network development plans. The coordination mandated by Article 10(4) provides the data necessary to fulfill Article 10(2).
  3. Prevent Speculative Reservation: It ensures that resources within the zone are allocated on fair, reasonable, and non-discriminatory terms. Early involvement of operators helps prevent any single entity from hoarding grid connection rights or land without the intention or ability to build, which could impede effective competition.

The Interplay with Spatial Planning

While Article 10(4) focuses on the coordination of operators, it works in tandem with Article 10(3) regarding spatial planning. National, regional, and local authorities responsible for spatial and development plans must:

  • Include provisions for the development of data centre projects deployed in acceleration zones.
  • Include provisions for the necessary infrastructure (such as roads, water, and energy lines).
  • Ensure that all relevant spatial planning data are available to data centre operators.

If these plans are subject to environmental assessments (under the Strategic Environmental Assessment Directive or the Habitats Directive), CADA requires these assessments to be combined to streamline the process. This integration ensures that the technical coordination with TSOs and DSOs is reflected in the legal and environmental framework governing the zone.

What this means for you

For public-sector procurement officers, planning authorities, and government officials, the designation of an acceleration zone is a multi-stakeholder process that requires early and structured engagement. The law does not permit a "top-down" designation without technical validation from the grid and network operators.

1. Initiate Cross-Agency Working Groups Immediately You cannot designate an acceleration zone unilaterally. You must establish a formal coordination mechanism that includes representatives from your national energy regulators, TSOs, DSOs, and electronic communications authorities. Ensure that these entities have a seat at the table during the initial scoping and site-selection phases. The law requires their involvement when designating the zone, not after.

2. Map Infrastructure Capacity Early Before finalising the boundaries of an acceleration zone, request current and projected capacity data from TSOs and DSOs. Article 10(2) requires a comprehensive analysis of energy needs for the zone. Use this analysis to justify the zone's location and to inform the national grid planning process. If the grid cannot support the proposed load, the zone may fail to attract investment or face significant delays, rendering the designation ineffective.

3. Engage Electronic Communications Operators Ensure that electronic communications operators are consulted regarding the availability of fibre and other high-speed connectivity. The success of a data centre depends on its connectivity. If the zone is designated without ensuring adequate network capacity, it will not meet the "acceleration" objective and may fail to satisfy the criteria for strategic projects.

4. Update Spatial Plans Proactively Review existing spatial and development plans to ensure they include provisions for the acceleration zone. If your region does not yet have an acceleration zone, begin the process of identifying potential sites and engaging the required stakeholders in advance. This proactive approach will help you meet the deadline for designation, which is set for six months after the regulation enters into force (as per Article 10(1)).

5. Document the Coordination Process Maintain clear records of the consultations and coordination efforts undertaken with TSOs, DSOs, and other authorities. This documentation may be required to demonstrate compliance with Article 10(4) and to support the streamlined permitting processes that follow. In the event of a dispute or audit, proof of this coordination will be essential.

Common misconceptions

Misconception 1: Only energy authorities need to be involved. Reality: While TSOs and DSOs are critical, Article 10(4) explicitly includes operators of electronic communications networks. Ignoring connectivity providers can lead to zones that are energy-ready but digitally isolated, undermining the purpose of the data centre.

Misconception 2: Coordination happens after the zone is designated. Reality: The law requires involvement and coordination when designating the zone. This means stakeholders must be engaged during the site selection and boundary definition phase, not just during the permitting phase of individual projects. Early engagement ensures that the zone is located where infrastructure can realistically be provided.

Misconception 3: Local authorities alone can designate zones. Reality: The designation is a Member State obligation (Article 10(1)). While local and regional authorities are key partners, the coordination must occur at a level that ensures consistency with national grid and network plans. Local decisions must be aligned with national infrastructure strategies.

Misconception 4: The "relevant authorities" list is open-ended. Reality: While the text includes "other relevant national, regional and local authorities," it specifically names TSOs, DSOs, and electronic communications operators. These named entities have a mandatory role. Other authorities are included based on their specific competencies (e.g., environmental protection, spatial planning), but the infrastructure operators are non-negotiable stakeholders.

Related

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