Data Centers
Behind every online click, search, and stream lies a physical network of computing and storage resources critical to our modern world – data centers. These facilities are an essential part of business infrastructure and present unique real estate, regulatory and environmental challenges, among many others. ArentFox Schiff’s attorneys have deep experience with this increasingly important asset class.
Our Work
Our cross-practice team provides legal services across the spectrum of data center matters to developers, institutional investors, landlords, service providers, tenants, and customers. We have an in-depth understanding of the complex, technical issues surrounding data centers. Our experienced practitioners advise on various types of real estate transactions related to data centers and counsel clients on myriad regulatory issues particular to the data center space including intellectual property, privacy, and tax.
Our Scope of Practice
Real Estate: Our Real Estate Practice Group has experience in multiple aspects of real estate work for data centers, from acquisitions and leasing representing both landlords and tenants to colocation agreements and financing of the development of such assets. In addition, we work with developers on long-term ground leases and development agreements for the development and construction of data centers.
Finance: Our Finance Group represents banks and other financial institutions providing acquisition and refinancing loans to data center providers throughout the United States.
Regulatory: Our Regulatory attorneys specialize in ensuring data centers comply with the latest privacy laws, including CCPA/CPRA, the 19 other statelevel comprehensive privacy laws enacted to date, GDPR, HIPAA, the federal Gramm-Leach-Bliley Act (GLBA), and the FTC Act. We also regularly work with clients on compliance with data security and data breach notification laws. We assist in implementing robust data protection strategies that build trust and enhance reputations. In an era where data is a valuable asset, compliance and ethical data use is crucial. We help develop policies and practices that promote compliant and responsible data management, aligning with our clients’ business values. We also assist data center developers purchasing former industrial buildings deal with complex environmental issues from former industrial operations.
Representative Transactions
- Represented a Fortune 100 technology-based company in its data center leasing across the United States, including in California, Illinois and Virginia.
- Represented a large public company in the acquisition of multiple undeveloped and developed sites to be rezoned for development of data centers in the Eastern United States.
- Represented a large public company, as tenant, in multiple build-to-suit leases with major digital infrastructure landlords in key data center hubs:
- Two leases for a data center campus outside of Atlanta
- Three leases for a data center campus in Arizona
- 11 leases for multiple data center campuses in Maryland
- 10+ leases for multiple data center campuses or single site buildings in Northern Virginia
- A data center lease in Silicon Valley
- Represented a large public company to acquire an option for a build-to-suite lease in Northern Virginia.
- Represented a large public company in a bespoke agreement to acquire exclusive rights to power for nearby data centers with a public utility in Northern Virginia.
- Represented a large public company in pre-leasing data center development work in Oregon.
- Represented a nationally-recognized bank in acquisition and bridge loans to diverse data center developers and landlords in Texas, New York, Minnesota, Georgia, Virginia, and Canada, secured by data centers.
- Represented a Japan-based investment company in a potential acquisition and development of a data center in Northern Virginia.
- Assisted client with substantial due diligence in connection with a proposed sale of an approximately 270-acre property located in Prince William County, Virginia to be developed into a data center site.
- Assisted a company selling high-capacity computer equipment in a joint venture to build custom data centers powered by renewable energy.
- Represented investors in data center and crypto mining projects.
- Represented developers on long-term ground leases and development agreements for the development and construction of data centers.
- Represented a leading e-commerce company in the sale of a data center.
- Assisted clients with cyber incidents involving data centers.
- Assisted a client providing cloud computing services on compliance with U.S. and global privacy, data protection, and data security laws.
- Addressed non-compliance issues at a financial services company’s data center related to the Environmental Planning and Community Right-to-Know Act (EPCRA) and negotiating with the U.S. EPA.
- Advised a $1B+ distributor on EPCRA reporting related to its data centers.
- Managed a client’s processing agreement with a major stock exchange’s data center affiliate.
- Assisted clients in review of services agreements with data center hosting providers.
- Handled co-location and hardware acquisition agreements for data center clients.
- Handled negotiation with regulators and achieving governmental approval of the cleanup for a proposed data center at an environmentally compromised property for property owner.
- Drafted and prosecuted patent applications for data center systems and related technologies for patent applicants.
Rankings
- Legal 500 USA - Leading Real Estate Practice
- US News and World Report - Leading Real Estate Practice
- Chambers USA - Ranked as Tier 1 Real Estate Practice in Washington, DC for more than a decade
- The Washington Business Journal - multiple Best Real Estate Deals
- Legal 500 USA – Ranked as Tier 1 Intellectual Property – Patents: Prosecution
