1. What are the challenges I might face when trying to a develop data centre in France? 

• Power Supply: France’s robust energy infrastructure benefits from low costs due to nuclear power (75% of generation). Nevertheless, accessing large capacities (over 2 MW) for major projects is challenging due to grid instability and high upfront costs. As a result, projects are increasingly moving outside city centres, such as the 300 MW mutualised infrastructure in Plan de Campagne and Brookfield’s €20bn AI investment, including a 1 GW project in Cambrai. 

In this context, the Réseau de Transport d'Électricité (RTE) – France’s electricity transmission system – collaborates with local authorities to identify zones for development, balancing land, infrastructure, and energy needs. Furthermore, regulatory changes aim to accelerate grid connections and prevent speculative capacity reservations.

• Land Availability: Land constraints stem from the need for low-latency connections, reliable energy access, and avoidance of risk-prone areas. Key regions like Île-de-France, Marseille, and Hauts-de-France dominate, though decentralisation may increase with AI centres’ reduced latency needs. Challenges include flood risks south of Paris, costly urban land, and regulatory hurdles, while northern Paris offers connectivity advantages but faces power shortages. Southern regions, despite available space, lack fibre infrastructure.

Paris accounts for over 70% of France’s data centre capacity, with leading operators seeking an ecosystem that enables interoperability. The city’s northeast outskirts, in particular, host a dense concentration of facilities, and operators are also looking for access to dark fibre networks. Similar clusters can be found in Marseille (subsea cable hub), Lyon, Bordeaux, Nantes, or Strasbourg.

• Environmental Compliance: Stringent regulations especially in France impose environmental standards pushing data centres to adopt green energy solutions, requiring substantial investment in renewable energy and energy-efficient systems.

Indeed, data centres must comply with environmental regulations, including the ‘Green Industry Law’ (effective October 2024), which roughly halved authorisation timelines from 17 to nine months. Additional requirements include water law compliance, deforestation permits, and protected species exemptions. Large projects (such as those over 50 MW generators or 40,000m² outside urban zones) require environmental impact assessments. Major National Interest Project (PINM) status may expedite approvals for key projects by centralising processes.

• Regulations: European and French regulations are rapidly evolving. The forthcoming Energy Efficiency directive will mandate waste heat reuse plans for data centres exceeding 1 MW by October 2025. Lengthy permitting processes and external dependencies can delay construction, with large projects taking more than 12 months to complete.

France’s strategic planning and regulatory reforms aim to overcome these challenges, ensuring the timely development of new data centres to strengthen its position in Europe’s data centre landscape.

2. How is France addressing the challenges of power supply and the planning process?  

• Power Supply: France is modernising its electricity grid and investing in renewable energy to support energy-intensive industries like data centres. The government promotes energy efficiency and waste heat reuse to benefit local communities.

The RTE, in collaboration with public authorities, is defining preferred zones for data centre development, considering grid expansion capacity. However, the RTE avoids investing in areas where local opposition is likely. Recent changes to grid connection rules address rising demand from data centres:

a) Shared Connections (Mutualisation): Under Article L. 342-2 of the Energy Code, the RTE can build oversized infrastructure to anticipate future installations, reducing costs and timelines by sharing expenses among users. The French Energy Regulation Commission determines cost-sharing formulas, with unused capacity costs absorbed by the RTE after 10 years. Financial contributions for high-voltage connections are capped to limit user costs.

b) Adjustment of Connection Capacity: Effective 1 August 2025, the RTE can reduce connection capacity if actual usage is below the agreed level. Users with agreements before this date may receive partial compensation, while those after will not. Phased connections will be evaluated over 10 years, allowing flexibility for capacity adjustments.

c) Restrictions on Connection Transfers: Stricter rules now govern the transfer of connection agreements, limiting them to related entities (e.g., parent or subsidiary companies) with RTE approval. These measures prevent speculative behaviour and ensure project transparency.

• Planning Process: New legislation under the Economic Simplification Bill streamlines data centre development, recognising them as critical infrastructure. Article 15 reduces administrative hurdles, enabling faster deployment while integrating energy efficiency and environmental criteria. Large data centres (30–50 hectares) can qualify as PINM, benefiting from expedited approvals, centralised management, and reduced electricity tax (50% for sites consuming over 1 GW annually).

PINM status may be reserved for European companies or those meeting sovereignty criteria, aiming to limit reliance on American hyperscalers. This legislation balances rapid deployment with environmental and energy efficiency goals, strengthening France’s digital sovereignty.

3. What other changes could be made to help the data centre industry grow and stay competitive in France?

• Resilient and Innovative Future: To grow and remain competitive in France, data centre operators must advance AI-driven innovations, prioritise sustainability, and ensure low-latency infrastructure. While supportive legislation and initiatives such as the EU AI Champions Initiative provide a strong foundation, further investment in cutting-edge technologies and renewable energy is essential for long-term growth. Some operators are pursuing revolutionary solutions by investing in advanced nuclear technologies alongside renewables and fuel cells, but success depends on technological maturity, regulation, social acceptance, and cost control. The coming years (2029–2035) will reveal whether these projects reach large-scale operation, making an integrated energy strategy essential for next-generation data centres. Revitalising its French nuclear fleet, combined with technological innovation in data centres, will be a key driver for future development.
• Fast Track Procedures: Expanding the "fast track" initiative, which provides rapid access to high power capacities (400–1000 MW) at selected sites, could speed up the development of new facilities. Adding more locations to meet growing demand would build on the success of the four sites announced in May 2025.
• Heating Recovery System: Strengthening the implementation of the ‘DDADUE’ law which was enacted on 30 April 2025 and published in the Official Journal on 2 May 2025, requiring waste heat recovery for data centres with 1 MW+ capacity from October 2025, could improve sustainability. Simplifying contracts and collaborating with urban heating networks would ensure efficient heat reuse and benefit local communities. A notable example is the Paris Olympic Aquatic Centre in Saint-Denis, where surplus heat from the Equinix data centre is already utilised to heat the Olympic swimming pool.
• French Fibre and Subsea Cables: France’s two main data centre markets, Paris and Marseille, are supported by strong connectivity. Marseille, with its subsea links to Africa and the Middle East, could further enhance its role as a global connectivity hub. Similarly, Paris, with its extensive fibre network, would benefit from further fibre expansion and innovative connectivity solutions to strengthen its position as a leading European data centre market.