Data center and digital infrastructure

Our global data center and digital infrastructure group has been leading data center projects for nearly two decades, with a team of more than 150 lawyers handling some of the largest and most complex digital infrastructure projects across the United States, Europe, Asia, Australia Canada and Mexico. Allied with members from our projects, banking and finance, real estate, energy and renewables, intellectual property, regulatory and environmental, and disputes practices, our data center and digital infrastructure team provides deep industry experience that leverages current market standards and offers detailed commercial advice on digital infrastructure projects covering a wide variety of structures and asset classes.  

We counsel numerous operators and investors on a variety of data center acquisitions and equity investments, joint ventures, and other methods of combining business operations. We also represent clients on standalone data center asset purchases and divestitures, including campus acquisitions, acquisition of sites to be redeveloped as data centers, and sale and leasebacks of data center assets.

We are preeminent advisors to project developers, landholders, service providers, governments, lenders, buyers and sellers of credits and other stakeholders participating in voluntary and compliance carbon markets. We continue to work at the forefront of carbon trading activity and carbon capture and storage projects to create green data center infrastructure. We have also developed keen industry knowledge of land-based and nature-based solutions project types, encompassing afforestation, reforestation and restoration (ARR) and other projects, as well as advising on first-of-its-kind carbon removal projects with new technologies such as rock weathering and direct air capture.

Our full-service construction team advises owner, developer, and sponsor clients in all phases of construction and development operations of data centers around the world. Several lawyers in our construction practice have engineering backgrounds and have worked in the construction industry and/or have prior in-house experience, giving us extensive knowledge of the practical realities of the construction business.

We are one of the few firms offering clients a true ‘cradle to grave’ service, providing the full spectrum of legal services across the energy sector. We led the way as the market expanded from traditional utility retail energy procurement to complex, behind-the-meter or islanded data center support microgrids, and from traditional utility power purchase agreements (PPAs) to various forms of energy hedges, corporate PPAs, large batteries, hybrid models, community solar, build-transfer agreements and other business models. Our lawyers are among the most experienced practitioners in the marketplace in structuring, documenting, negotiating and implementing traditional, corporate and virtual power purchase agreements (VPPAs).

We advise developers, operators sponsors, lenders and investors on the financing arrangements for data center development projects and acquisitions. Greenfield single-asset financings are a mainstay of data center financing options, however as the market continues to mature, portfolio financings are incorporating brownfield and greenfield assets. Our team has the experience and know-how to cover the full remit of structures used to finance this asset class, including project finance, secured lending and collateral arrangements, real estate finance, securitizations and structured finance, as well as the refinancing and restructuring of existing debt.

Data center disputes are commonplace and negotiated outcomes are often desired over litigated outcomes. Our lawyers are adept at helping clients navigate through workouts and deal recasts. In the event a negotiated outcome is not possible, we offer a deep bench of experienced trial litigators ready to advocate on your behalf.

Our real estate team has vast experience representing developers, investors, owners and occupiers on all real estate aspects of data centers projects across the world, including portfolio acquisitions, land purchase and sale agreements, leasing, planning and environmental issues.

We navigate the complex web of laws and regulations governing artificial intelligence (AI), data centers, infrastructure development and cryptocurrency, to keep your operations in full compliance while mitigating potential risks. We also provide comprehensive counsel on data security and privacy matters, helping implement robust safeguards and navigate the intricacies of privacy regulations.

Tax incentives and exemptions for data centers have increased in prevalence as jurisdictions around the world seek to attract lucrative business in this growing industry. These incentives may include exemptions on sales and use tax on data center equipment and energy to reduced corporate income tax rates to property tax abatements, potentially saving businesses millions over the life of the agreement. We help clients identify and meet varying state or regional requirements for tax incentives – generally minimum investment thresholds and employment requirements.

From hyperscale data center contracts to cryptocurrency mining agreements, AI platform and services agreements, inbound and outbound outsourcing, and technology and IP agreements, our team brings deep knowledge and insights to represent clients in the negotiation and drafting of agreements that protect their interests and promote seamless business relationships.