Brussels, 5th June 2026 - The European Data Centre Association (EUDCA) welcomes the publication of the proposed Cloud and AI Development Act (CADA) as part of the European Commission’s Tech Sovereignty Package. The Act represents an important step towards addressing Europe’s growing need for compute capacity and strengthening the enabling conditions for data centre investment across the EU.
Europe’s ability to compete globally in artificial intelligence and emerging technologies will depend on access to robust, scalable digital infrastructure. While demand for advanced computing continues to accelerate, gaps in access and uptake persist across sectors. Addressing these challenges will require increased deployment of compute capacity alongside broader efforts to support adoption and skills development.
Data centres are a foundational component of Europe’s digital ecosystem, supporting the growth of AI and cloud services and contributing to economic development. As highlighted in the EUDCA’s 2025 State of European Data Centres Report outlines, the sector plays an increasingly important role in Europe’s economy and innovation landscape.
Realising this potential will depend on several enabling conditions: reliable access to energy and other essential resources, a larger skilled workforce, and efficient permitting processes for land use. It is equally important that such processes respect local communities and support sustainability goals, while allowing for the timely development of infrastructure needed to underpin Europe’s AI ambitions. Against this backdrop, the Commission’s initiative is an important first step in creating the conditions that will help data centre operators contribute to Europe’s AI leadership and strengthen the EU’s global competitiveness.
Key elements:
- National Cloud and AI Strategies: EUDCA supports the requirement for Member States to define national strategies for data centre development, providing greater clarity and coordination for industry stakeholders. Consideration should also be given to establishing dedicated expert taskforces to support implementation and streamline permitting processes.
- Acceleration Zones and Streamlined Permitting: The identification of pre-qualified zones with access to key resources addresses one of the main barriers to deployment. The introduction of Single Information Points aligns with calls for more coordinated, one-stop-shop approaches at national level. Further clarity on timelines for permitting phases will be important to ensure predictability.
- Strategic Project Status: The creation of a strategic project category for data centres could help attract investment, particularly where projects demonstrate strong integration with energy systems and the wider digital ecosystem. Access to funding and state aid will be a key factor in supporting these developments.
- Alignment with Energy Efficiency Directive: The linkage between the Act's benefits and the Energy Efficiency Directive's framework reflects EUDCA's recommendation that best-in-class projects meeting high environmental and efficiency standards should benefit from expedited processes. Relying on the existing framework reduces the burden for companies already required to report under the scheme, while incentivising more to take part. EUDCA looks forward to working with policymakers to ensure these criteria serve to identify best-in-class projects, while acknowledging the contextual nature of data centre operations across the EU.
Quote from EUDCA Secretary General
Michael Winterson, Secretary General of EUDCA, commented:
"The Cloud and AI Development Act marks an important step for Europe’s digital infrastructure ambitions. Our industry stands ready to support the growth of Europe’s compute capacity and is committed to contributing to the development of sustainable and resilient data centre capacity in Europe. This initiative reflects several of the key enabling conditions we have long advocated for - including more efficient permitting, access to resources, and clearer strategic direction. We look forward to engaging with policymakers and Member States to support effective implementation"
Looking Ahead
While welcoming this initiative, EUDCA emphasises that successful implementation will require:
- Consistent application of harmonised definitions across all Member States
- Continued investment in energy grid modernisation and expansion
- Addressing the skills gap through ambitious training programmes
- Ensuring access to sustainable resources, including renewable energy and non-potable water for cooling
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About the EUDCA
The European Data Centre Association (EUDCA) represents the interests of the European data centre community. Established in 2012, the EUDCA is the voice of the industry, with a diverse membership which includes European and international data centre operators, equipment suppliers, and a network of national trade associations.
The EUDCA has been at the forefront of the energy transition efforts of the data centre industry. As co-founder of the Climate Neutral Data Centre Pact, the EUDCA is deeply committed to taking the industry on the road to climate neutrality by 2030.
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