Data Centers

Development, Construction, and Infrastructure

• Counseled clients on the preparation and negotiation of construction, consultant, and supplier agreements for hyperscale data center projects.
• Guided the acquisition, development, and financing of real estate assets related to data center projects, including coordination of land use, construction, and operational considerations.
• Represented clients in negotiations and development planning for large-scale industrial and infrastructure projects, including facilities supporting data center operations.

Technology, Intellectual Property, and Systems

• Prosecuted patent infringement claims on behalf of a lead contractor in a data center project, resulting in a favorable settlement following arbitration.
• Provided patent and trademark counseling for electronic equipment rack systems used in data centers, including structural, cooling, and cable routing technologies.
• Secured numerous patents for data center storage systems and related technologies, supporting clients’ innovation and commercialization strategies.
• Represented designers, builders, and equipment providers in disputes involving trade secret misappropriation, patent infringement, and breach of contract relating to data center systems and infrastructure.

Operations, Contracts, and Portfolio Management

• Reviewed, negotiated, and enforced contracts for a client operating more than 30 data centers, including vendor, service, and operational agreements.
• Advised providers of infrastructure and services for data centers and communication networks on complex commercial agreements and operational issues.
• Supported clients in structuring and managing long-term relationships with contractors, suppliers, and technology partners across multiple data center facilities.

Disputes and Risk Management

• Represented a provider of infrastructure and services for data centers in a large arbitration against a project owner involving construction, performance, and intellectual property issues.
• Represented a leading data center company in arbitration arising from the design and construction of a data center facility, involving delay, extra work, licensing, and intellectual property issues.
• Represented contractors and suppliers in disputes arising from the construction of data centers, including claims involving delay, performance, and contractual obligations.
• Represented a client in insurance coverage matters arising from the construction of a data center, recovering millions of dollars in defense costs from multiple insurers without litigation.

When should legal counsel be involved in a data center project?

Ideally at the earliest stages of site selection and project planning. Data center projects involve complex considerations, including land use, power and infrastructure requirements, contractual arrangements, and regulatory approvals. Early involvement helps identify risks, structure agreements effectively, and avoid issues that can delay development or increase costs later.

What are the most common legal challenges in data center development?

Common challenges include land use and entitlement issues, coordination with utilities and infrastructure providers, construction risk allocation, and negotiating complex agreements with contractors, suppliers, and technology providers. Projects often involve multiple stakeholders, making alignment and clear documentation critical.

How do data center projects differ from other real estate or infrastructure projects?

Data centers involve unique technical and operational requirements, including power capacity, cooling systems, connectivity, and specialized equipment. These factors create additional complexity in construction, contracting, and ongoing operations, often requiring coordination between real estate, construction, and technology considerations.

What types of agreements are critical in data center projects?

Key agreements typically include development and construction contracts, equipment and supplier agreements, service and operations agreements, and, in many cases, joint venture or financing arrangements. These agreements must be carefully structured to address performance, risk allocation, and long-term operational needs.

How do intellectual property issues arise in the data center space?

Intellectual property issues often arise in connection with proprietary systems, infrastructure design, cooling and storage technologies, and operational processes. Disputes can involve patent infringement, trade secrets, and licensing arrangements, particularly where multiple parties contribute technology or specialized equipment.

What should operators consider when managing multiple data center facilities?

Operators should focus on consistent contract management, vendor relationships, and risk allocation across facilities. As portfolios grow, coordination across jurisdictions and standardization of agreements and processes become increasingly important to maintain efficiency and control costs.

How are disputes in data center projects typically resolved?

Disputes may arise from construction delays, performance issues, contract disagreements, or technology-related claims. Many are resolved through negotiation or arbitration, but litigation may be necessary in higher-stakes matters. Early strategy and clear documentation often play a key role in achieving efficient resolution.

What role does insurance play in data center projects and disputes?

Insurance can be critical in managing risk across construction and operations, including coverage for delays, defects, and liability issues. Disputes over coverage are not uncommon, and careful review of policies and claims strategy can significantly impact recovery.

How do you help control costs in complex data center projects or disputes?

Cost control begins with planning and strategy. By structuring agreements carefully, prioritizing key risks, and identifying opportunities for early resolution, we help clients manage legal spend while maintaining strong positions in negotiations and disputes.

When should a company consider changing or expanding legal counsel for data center matters?

Companies often reassess counsel as projects scale, become more complex, or involve multiple jurisdictions and disciplines. This is particularly relevant when a more integrated approach is needed to coordinate real estate, construction, technology, and dispute-related issues efficiently.