EUDCA backs new cloud and AI development act to support Europe's tech ambitions

The European Data Centre Association (EUDCA) has welcomed the European Commission’s initiative on the Cloud and AI Development Act (CADA), which forms part of the broader Tech Sovereignty Package. The Act is intended to address the need for increased compute capacity within the EU and to support conditions for data centre investment across Europe.

In the context of global competition in artificial intelligence and emerging technologies, Europe’s development depends on access to scalable digital infrastructure. Despite rising demand for advanced computing, some sectors continue to face barriers to access and adoption. Addressing these challenges involves expanding compute capacity as well as improving adoption and skill development.

Data centres play a central role in Europe’s digital infrastructure, supporting the growth of cloud and AI services and contributing to economic activity. The EUDCA’s 2025 State of European Data Centres Report highlights the sector’s growing role in Europe’s economy and innovation.

The development of Europe’s AI capabilities depends on several factors, including reliable energy supply, availability of a skilled workforce, and more efficient permitting processes for land use. These considerations also involve balancing local community needs and sustainability objectives with infrastructure development timelines aligned to AI objectives.

The European Commission’s initiative aims to support a regulatory and operational environment that enables data centre operators to contribute to Europe’s AI development and competitiveness.

Key provisions include:

• National Cloud and AI Strategies: The EUDCA supports requirements for Member States to develop national strategies for data centre development, with proposals including expert taskforces to assist implementation and improvements to permitting processes.
• Acceleration Zones and Permitting: The creation of pre-defined zones is presented as a way to reduce deployment barriers. The Single Information Points initiative supports a more streamlined national approach. Clear and defined permitting timelines are highlighted as important for predictability.
• Strategic Project Status: The designation of data centres as strategic projects is proposed as a means of attracting investment, particularly where projects integrate energy systems with digital infrastructure. Access to funding and state aid is identified as relevant for such initiatives.
• Energy Efficiency Alignment: The integration of CADA with the Energy Efficiency Directive provides a framework that links environmental performance with procedural benefits, including faster processing for compliant projects and reduced administrative burden.

While supporting the initiative, the EUDCA notes that effective implementation would also depend on consistent definitions, additional investment in energy grids, measures to address skills shortages, and access to sustainable resources.