Several major data center projects were announced at this year’s “Choose France” summit, which comes on the heels of the announcement of a €109 billion investment at the 2025 Artificial Intelligence Action Summit in Paris. While this highlights the nation’s allure for establishing data centers, stakeholders should be prepared for compliance with certain French regulations.
France's appeal as a location for data center projects is clear, particularly given its readily available, inexpensive, and carbon-free electricity. The nation’s strategy of massive investment in artificial intelligence (AI) is promising for players in the sector; however, they still need to anticipate obtaining a number of administrative authorizations, particularly regarding national environmental and urban planning regulations.
ICPE Regime and Environmental Impact Assessment
Data centers may be subject to the regime of installations classified for environmental protection (ICPE) not because of their main activity (data storage), but because of their ancillary functions.
Notably, the presence of generators is likely to make the project subject to obtaining an authorization under the ICPE legal regime (heading 3110 Combustion in particular).
Although the evaluation of the required formalities is case-based, energy installations surrounding data centers cannot escape making at least a declaration to a state representative under this regime.
In any case, the various energy and cooling units involved in such projects make it likely that an environmental impact assessment will need to be conducted in accordance with Article R.122-2 of the French Environmental Code.
Other Specific Authorizations
Depending on their location and characteristics, data center projects may also require additional authorizations and declarations. The main requirements may include:
Most of the authorizations are now requested through a single “environmental authorization” application in accordance with article L.181-2 of the French Environment Code.
However, these administrative constraints may be reduced in light of the ongoing debates surrounding the Business Simplification Bill, which was approved by the Senate in April 2024 and is currently under review by the National Assembly.
If the National Assembly approves this text (parliamentary proceedings continue at the end of May 2025), data centers could be classified by decree as “projects of major national interest.” This qualification would allow them to be recognized as an “imperative reason of major public interest,” leading to easier access to many of the aforementioned authorizations and an accelerated connection to the electricity grid.
However, these changes may only apply to operators from countries whose legislation ensures an equivalent level of personal data protection to that of Regulation (EU) 2016/679. This raises questions about the eligibility of non-EU investors for this simplified framework.
A decree will determine the criteria for classifying a project as a “project of major national interest.” These criteria will be “technical, objective and non-discriminatory.”
A new law, effective April 30, 2025, established a framework for assessing the energy performance of data centers. The law transposes the EED directive of September 20, 2023 into French law.
Article L236-1 of the French Energy Code now offers the following definition of data centers, along with a new regulatory framework:
These provisions do not apply to data centers that are considered “vital” or that are related to defense.
A system of penalties will be introduced for operators that do not comply, combining fines and “name and shame.”
Although the new technology sector is already subject to similar regulations, these new obligations will likely significantly impact many others, such as banking.
The Issue of Urban Planning Qualification
Data center projects also require building permits from the relevant authorities. This process implies defining the purpose of this type of infrastructure to determine the applicable urban planning legislation.
Decree No. 2023-195, issued on March 22, 2023, confirmed that data centers fall under the building category of “other activities in the primary, secondary, and tertiary sectors,” as defined in Article R. 151-27, 5° of the Town Planning Code. More specifically, they fall under the subcategory of “warehouses.”
However, the case law is not well established.
Indeed, from a fiscal standpoint, the French Administrative Supreme Court has ruled that a data center is not a storage facility (CE, 11 October 2022, no. 463134).
Additionally, due to their importance to the global economy and national security, as well as their potential use in hosting data directly related to public service missions, it is reasonable to question whether these buildings should be classified as “facilities of collective interest and public service.”
Although this regulatory qualification seems to make it easier to convert “traditional” warehouses into data centers, upcoming bills and case law must clarify this point. In the meantime, project holders must exercise even greater caution when describing their projects to local authorities.
Heterogeneous Support from Local Authorities
Data centers are currently subject to the standard building permit process. Therefore, they must be built in accordance with the local planning schemes (PLU), which are drawn up by local authorities, and they must receive their approval.
Local authorities provide investors with varying degrees of support. While some PLUs tend to facilitate the development of data centers, some local authorities emphasize the heavy impact of these installations on water resources and the availability of local land, with some French cities having already opposed such projects on this very basis.
To address this opposition, the Business Simplification Bill aims to recognize data centers as “projects of great national interest” (PINM). This would allow the state representative to ensure that local urban planning documents are compatible with such projects and to issue building permits instead of local authorities.
Additionally, the bill will empower the administrative authority to object to the issuance of a building permit in the event of recurring local water shortages.
Law clerk Adrien Bousgarbies contributed to this LawFlash.
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