Overview
Surging demand around artificial intelligence, cloud migration and enterprise digitization is spurring data center development. Clients within the data center industry need legal counsel that understand the converging workstreams of permitting, construction contracting, capital formation, commercial leasing and workforce deployment.
At Stinson, we advise clients across the full lifecycle of data center, digital infrastructure, and technology-enabled projects. We draw on integrated capabilities in real estate, energy, construction, environmental, corporate, M&A, intellectual property, data privacy, employment and litigation to help clients navigate the explosive demand for data centers, the complex permitting and the evolving regulatory frameworks. We work closely with developers, operators, enterprise users, investors, lenders, and technology companies within the data center ecosystem.
Our attorneys regularly support clients on matters involving site acquisition and leasing, land use, energy procurement, infrastructure finance, tax incentive structures, project development, and mission-critical commercial agreements. We also help clients draft forms and negotiate transactions for data center space ranging from smaller colocation facilities to enterprise level data centers to hyperscalers. Our experience spans every stage of a project’s development and operation, helping clients align business objectives with evolving legal and regulatory requirements.
Facilitating Corporate Transactions
We advise clients within the data center industry on a range of corporate matters, including commercial contract negotiations, corporate reorganizations, spinoffs, sales of businesses, acquisitions, and related filings. Our experience includes representing a purchaser of a data center facility and associated solar energy production assets in an approximately $125 million membership interest acquisition transaction.
We advise investors with financing and joint venture agreements regarding data center development projects, including construction financing and long-term capital arrangements. We represented borrowers with respect to syndicated credit agreements, which included a $1.5 billion credit facility for a publicly traded, data center REIT.
We also handle significant commercial contracting work, including master services agreements, transactional business advice, contract development and vendor contracts.
Supporting Data Center Construction & Development
Stinson has handled hundreds of major transactions relating to data center site selection, acquisition and development projects throughout the U.S. Our experience includes advising developers, investors, data center REITs and other stakeholders on the planning, financing and execution of data center projects from site selection through project completion. Our data center construction contract negotiation team has extensive experience drafting and negotiating contracts for construction projects of all sizes and complexity, with an aggregate project value exceeding $20 billion.
We handle acquisition and development matters including land use, public financing and incentives, rezoning, entitlements, site control, campus development, declarations, easements, asset management and post-closing matters. We work with local communities or municipalities on approvals, compliance, disputes and crisis responses related to data center site selection.
Navigating Environmental and Regulatory Compliance
We have substantial experience related to the environmental aspects of data center projects as well as navigating regulatory compliance connected to these efforts.
From historical agricultural operations to high-tech, developed data center projects, we leverage in-depth understanding of regulatory bodies, including the Environmental Protection Agency (EPA), U.S. Fish and Wildlife Service (USFWS), U.S. Army Corps of Engineers (USACE) and state environmental agencies to ensure compliance, with an objective of minimizing environmental liability exposure. Over the past 10 years in at least 13 states, our attorneys have managed the coordination and analysis of Phase I Environmental Site Assessments and Phase II Investigations regarding data center development. This has included providing advice related to the remediation of contaminated sites along with risk mitigation strategies. Our environmental attorneys also navigate water usage, cooling issues, environmental compliance, PFAS risks, water-shortage concerns and environmental diligence.
Resolving Data Center Litigation & Disputes
We represent clients in a variety of data center related litigation and disputes. These range from construction challenges, real estate disputes, service outage claims, employment issues, vendor agreements, bankruptcy exposure, administrative claims, and regulatory subpoenas. Our attorneys recently represented a NYSE data center REIT in federal court against a challenge from a competing developer over a $340 million land acquisition.
Our litigation attorneys are results-oriented advocates that understand the need to resolve data center disputes efficiently and economically to ensure business continuity.
Securing Data Privacy & Intellectual Property
Clients operating critical digital infrastructures face growing intellectual property, privacy and data protection challenges. We help clients that provide data storage and hosting services develop privacy policies, data protection agreements and other governance frameworks designed to address evolving legal and regulatory requirements. Our experience includes drafting and negotiating customer and vendor contracts that incorporate revised standard contractual clauses for transfers of data from the European Union to the United States and advising on compliance in an expanding landscape of state privacy laws.
For our clients involved in cloud services, data management, cybersecurity, AI infrastructure, e-discovery, backup systems, and enterprise software, we provide patent-related services including patent prosecution, patentability searches, general patent portfolio management, and patent infringement advice. The patent matters include technologies relating to e-discovery, data de-duplication, data recovery, backup storage media, retention periods, standalone e-discovery machines, VPN capabilities, document review, and keyword search functionality. We also handle trademark prosecution, portfolio management, oppositions, objections, and enforcement matters, including opposition proceedings, as well as trademark infringement issues.
Managing Evolving Workforce Challenges
Employers in the data center industry face unique workforce challenges when recruiting, hiring and managing specialized technicians and highly skilled engineers.
Stinson’s highly experienced team of labor and employment attorneys guide clients through immigration compliance, employee training, employment-related litigation, personnel practice counseling and comprehensive employee benefits. We have experience developing sensible employment policies, managing sensitive workplace investigations and guiding clients through emergency personnel situations.
Our immigration services help businesses navigate H-1B petitions and transfers, PERM labor certification, I-140 immigrant visa petitions, adjustment of status matters, I-9 and E-Verify projects, and general immigration counseling.
