Initiatives

Data Centers

In the rapidly evolving markets surrounding data center development, considerations including complex technology, finance, real estate, business, and regulatory issues combine to create a dynamic and challenging deal environment.

The importance of robust and comprehensive legal services is crucial to the successful development, financing, and operation of data centers. From project planning and deal structuring, to ensuring compliance with contractual obligations and regulatory frameworks, to mitigating risk and exploring innovative financing options, we are well-positioned to support the diverse needs of our clients and deliver efficient, goal-oriented results.

We counsel clients such as capital providers, IT service providers, developers, energy service providers, and technology companies across a range of legal and business matters involving the development, financing, leasing, and operation of data centers. Our team brings together relevant expertise across real estate, finance, construction, regulatory, intellectual property, leasing, public and project finance, litigation, and tax to provide our clients with effective and efficient counseling.

Our experience includes:

Real Estate, Infrastructure, and Other Facility Development – We negotiate and draft development agreements, lease agreements, all-versions design and construction contracts (including alternative project delivery devices), and operation and maintenance (O&M) agreements and devices. Our attorneys also work to ensure compliance with design, construction and operational specifications and related requirements; zoning laws; land use restrictions and permitting; and financing requirements.
Real Estate and Project Finance – We structure and document debt and equity capital and utilizing securitization, tax credits, project finance and public finance structures, including public-private partnerships to finance data center development and expansion.
Energy Contracts and Regulatory Compliance – We advise on power purchase and supply agreements, energy infrastructure joint ownership structures, and state and federal energy and utility regulations.
Environmental – Our attorneys advise on environmental laws and policies, including carbon emissions regulations, water use, waste disposal, and permitting requirements.
Contract Negotiations – The team negotiates services agreements on behalf of data center operators entering into contracts with customers for services such as data storage, cloud services, and managed hosting.
Government Relations – We help navigate the complex regulatory, policy, and legislative landscape that affects the development and operation of data center facilities. This includes tax incentives and credits, zoning and land use regulations and environmental regulations.
Employment Law – Our attorneys handle the wide range of issues related to the hiring, management, and treatment of employees, including Fair Labor Standards Act (FLSA), Occupational Safety and Health Administration (OSHA), Title VII, ADA, pay equity issues, and classification/misclassification issues.
Intellectual Property – We negotiate software licensing agreements and intellectual property rights for the technologies used in data center operations and handle patent filings, licensing agreements, and intellectual property rights disputes.
Litigation – Our litigators represent clients in lawsuits involving contract disputes, service failures, and breaches of privacy and security.
Privacy and Data Security – We counsel clients on ensuring the protection and confidentiality of data stored and processed within data centers and on compliance with General Data Protection Regulation (GDPR), the California Consumer Privacy Act (CCPA), the Colorado Privacy Act, and other state privacy laws.
Tax – We offer comprehensive federal, state, and local tax advice tailored to data centers.

Experience

Represent an Arizona-based developer in the acquisition of 500+ acres from the State of Arizona for its future development of data center facilities that will support the technology infrastructure of Southern Arizona. Our work consists of ensuring zoning and land use approvals will be given to construct this facility along with the necessary utilities that will be required to operate.
Represent a multinational e-commerce corporation in its site selection, acquisition, and all pre-development approvals for a new datacenter in Utah. Our work consists of all co-location agreements and related development agreements.
Represent a global technology company in the acquisition of land adjacent to its Utah-based facility for the future expansion of its data center facilities. Our work consists of land use approvals, providing the public financing, and required state and local governmental approvals.

Advised an information technology company on establishing land condominium and building condominium regimes to allow for division of ownership of real estate parcels within data center complexes, including for separate fee simple ownership, leasing, and/or financing of the units. We also established commercial property owners associations and related covenants to deal with ownership, management, maintenance, and cost-sharing for common areas and for fiber optic infrastructure duct banks within the data center complexes and for easements and use restrictions.
Represented affiliates of two real estate companies in connection with the sale of the fee interest in ground leased properties across a global technology company’s Southern Nevada data center campus in connection with a $11 billion take-private transaction.
Acted as Arizona counsel to a leading global financial group as administrative agent in connection with a $1.9 billion debt financing to a subsidiary of a wholesale data center developer for a data center campus in Mesa, Arizona, having 206 MW of critical load capacity and—when fully built—the capacity to support a minimum of 450 MW of critical load across 3.1+ million square feet.
Acted as California counsel to a leading global financial group as administrative agent in connection with a $440 million limited recourse senior secured term loan to a subsidiary of a wholesale data center developer for a data center campus in Santa Clara, California, having the capability of supporting 72 MW of critical load capacity across 540,000 square feet.
Acted as Nevada counsel to a leading global financial group as administrative agent in connection with a $3.32 billion credit facility to a subsidiary of a global technology company for the construction of a portion of its Northern Nevada data center campus consisting of three 100 MW data center buildings, and an additional $2 billion credit facility for the construction of five other data center buildings in the same campus, having 360 MW of critical load capacity.
Represented a financial institution, in its capacity as collateral agent, administrative agent, and depositary in a $25 million financing transaction for 340 Progress Circle, a 42,000 square-foot single-tenant data center in Cheyenne, Wyoming.
Represent a construction management and talent acquisition provider, with a focus on military veterans, for data centers in its development of form construction documents of data center projects.
Represent a leading data center and colocation provider with dozens of data centers across its platform in the acquisition, sale-leaseback, leasing, and development of its data centers across the country.
Represented a data center and colocation provider in numerous ABS financings and its first securitization and subsequent upsize transactions in excess of $2 billion.
Represented a multinational pharmaceutical company in the sale/leaseback of an Upper Providence, Pennsylvania data center.
Served as counsel for the plaintiff in several disputes involving power distribution units in data centers and won a $13 million verdict after a two-week jury trial.
Represented the sellers in the disposition of—and the owners in the refinance of—21 medical office buildings and a supporting data center in North Carolina and South Carolina.
Counseled a data center campus provider on tax, leasing, zoning, and litigation issues.
Counseled a technology company focused on artificial intelligence and computing infrastructure on trademarks.
Handled intellectual property, real estate development, and commercial litigation for an information management company.

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