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ARTICLE · 26 JUNE 2026

EU Data Center Rules Combine Expansion Incentives With New Energy Obligations

Jones Day
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The EU Tech Sovereignty Package introduces the Cloud and AI Development Act, committing to triple data center capacity within five to seven years while establishing new energy governance obligations.

United StatesEnvironment
Françoise Labrousse
Françoise Labrousse
Brian Sedlak
Brian Sedlak
Alexandre Verheyden
Alexandre Verheyden
Kaarli H. Eichhorn
Kaarli H. Eichhorn
Marta Lahuerta Escolano
Marta Lahuerta Escolano
Melissa Vandewater
Melissa Vandewater
Philipp Werner
Philipp Werner
Elizabeth Dominguez Yaeger
Elizabeth Dominguez Yaeger
Author LinkedIn connections

In Short

The Situation: The Cloud and AI Development Act ("CADA"), published as part of the EU Tech Sovereignty Package on June 3, 2026, commits to at least tripling EU data center capacity within five to seven years, requiring approximately €200 billion in predominantly private investment. At the same time, the Strategic Roadmap for Digitalisation and AI in Energy establishes new governance obligations around energy consumption, sustainability, and grid integration for data center operators.

The Result: To support expansion while addressing energy concerns, CADA introduces simplified permitting and priority grid connections for projects meeting sustainability criteria, combined with a new tripartite agreement framework between data center operators, energy stakeholders, and public authorities. These agreements will require operators to contribute to grid stability through demand-side flexibility, integrate waste heat reuse into facility design, and coordinate expansion plans with

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