In an ever-connected world, coupled with the emerging role of artificial intelligence, data centers are emerging as the backbone of innovation. Key projects and investments demand trusted advisors who are embedded in a strong network and actively engaged with the key issues shaping the industry. Phillips Lytle has deep industry knowledge and takes a solution-oriented approach to address all aspects of the data center ecosystem.
Phillips Lytle is recognized by Chambers USA and Legal500 in many practice areas that impact data center development, including real estate, energy, environment, mergers and acquisitions, litigation and telecommunications.
Through our data center expertise, Phillips Lytle provides comprehensive legal counsel to clients throughout the entire data center lifecycle and supply chain, from development, siting, energy procurement and construction, to acquisitions and sales, and ongoing operations. Our attorneys have extensive experience representing developers, sellers, buyers, investors, and operators in the data center industry. We leverage our real estate, transactional, regulatory and operational expertise with energy, fiber optic and wireless networks to provide comprehensive support to data center projects. We take a multidisciplinary approach to representing data center clients, which includes seasoned attorneys from our Real Estate, Energy and Renewables, Telecommunications, Corporate and Business Law, Environmental Law, Tax and, Banking and Financial Services Teams, and when necessary our Litigation Team. In addition, Phillips Lytle also delivers a top team of Data Privacy and Cybersecurity lawyers to navigate the complexities of various state privacy laws.
Our representation of the entire data center lifecycle incorporates guidance and counsel across a number of vital subject areas in the development and operation of a data center. Our expertise in this area includes assisting clients in the following:
Phillips Lytle’s Data Center Team has the wide-ranging experience and cross-functional capabilities to guide any size data center project throughout the entire development process, from inception to operation. Our Real Estate attorneys assist in establishing site control through the acquisition or leasing of the real property, and also work with clients to negotiate and memorialize the various easements and restrictions necessary to create a functional site. Phillips Lytle’s Land Use Team excels at navigating the complex web of land use, permitting and zoning requirements for data centers. Our attorneys leverage their expertise to secure necessary approvals while also addressing critical issues, such as energy supply, cooling, noise mitigation, environmental issues and fiber connectivity. We negotiate construction contracts, microgrid and power purchase agreements, and often manage environmental reviews for data center clients. Our Banking and Financial Services Team assists in project finance for new or existing data centers.
A key component to a successful data center is the ability to obtain large quantities of high quality electric energy at rates that are economically viable. We represent data center owners and operators in the complex regulatory and procurement process for the energy necessary for efficient data center operation. This includes negotiation of offtake agreements with generators, identification and procurement of allocations of renewable energy (including low-cost hydropower), and a process for management of the related energy attributes such as carbon credits and associated cap-and-trade allowances. We routinely engage with state-level energy authorities, state regulatory commissions, and the Federal Energy Regulatory Commission. Additionally, we work with our clients to obtain the necessary reviews and approvals from appropriate Independent System Operators and negotiate with utilities regarding infrastructure upgrades necessary to accommodate large data center operations or to facilitate behind-the-meter energy generation. Many data center owners and operators have a keen interest in procuring renewable energy to power their operations; we have unparalleled connections in the renewable energy industry to facilitate those business arrangements.
When it comes to data center acquisitions, sales, mergers and joint ventures, our team brings a wealth of transactional experience to the table. We expertly guide clients through the entire process, from negotiating equity purchase agreements, purchase and sale agreements, joint venture agreements, and addressing complex corporate and tax structuring issues (including tax transfer and other tax issues). Our thorough due diligence expertise provides you with the tools you need to make informed decisions throughout the diligence, closing and post-closing process.
Our regulatory expertise is built into our transactional and analytical processes so that we can better assist clients in navigating the wide range of data center compliance issues, not only in areas such as energy efficiency but also in tax and development incentives, data privacy and cybersecurity. This allows us to proactively identify opportunities for you and help you mitigate risks, ensuring a smooth data center acquisition or development process. Whether you are looking to acquire an existing facility or build a new one, we work closely with you to help you develop future-oriented strategies for data center infrastructure, that capitalize on the rapid growth of AI and machine learning.
Recognizing that operations may be at the heart of your business, our team has a dedicated group within our Data Center practice that is solely focused on leases, service level agreements and other operational contracts. Whether leasing out rack space, a private turnkey suite or an entire floor in a data center, or deploying hyperscale or edge data centers, we have assisted data center operators in creating and negotiating cutting edge agreements for operating their businesses. We advise both property owners (landlords) and tenants on data center leasing transactions, including the negotiation of long-term leases critical to the economics of the project. Our expertise with energy development, storage and procurement, as well as with fiber optic networks and traditional telecom and new data center leases is also notable. Moreover, our work also includes agreements for day-to-day operations of data centers, including Master License for space and power, Service Level Agreements, as well as ancillary documents such as customer service order forms, cross-connection order forms, service level agreements, and meet-me room rules and policies. We have represented data center operators across a wide spectrum of facility tiers and compliance standards, including those who operate Service Organization Control (SOC) 2 compliant data centers. Our experience allows us to provide tailored guidance to data center operators, regardless of the size, complexity or compliance requirements of their facilities.
Telecommunications underpins the data center ecosystem. Phillips Lytle delivers legal expertise across a wide range of telecom matters, including network connectivity, infrastructure development and regulatory compliance.
Recognized as a national leader and trusted counselor in telecommunications law, our firm has a proven track record guiding clients through the complex legal landscape of digital infrastructure investments. Through our strategic counsel and forward-thinking approach we have played a pivotal role in shaping the success of numerous high-profile projects, driving innovation and growth in telecommunications infrastructure.
We understand the key aspects of digital infrastructure and what it takes to deploy networks of towers, small cells, fiber and data centers in public and private rights of way. Our team has deep experience providing guidance on and due diligence review of leases, licenses, easements, franchises, pole attachments and other rights-of-way agreements. Additional experience includes environmental, zoning, permitting and land use authorizations. Few firms can match the depth of knowledge we have regarding regulatory approvals at the federal, state and local levels. We excel in the representation data centers in both organic growth and transformational growth including merger, asset purchase or equity purchase agreements, with unparalleled and deep knowledge and experience informing our guidance to clients.
Whether leasing out rack space, a private turnkey suite or an entire floor in a data center, or deploying edge data centers, we have assisted data center operators in creating and negotiating the agreements for operating their businesses. We advise both property owners (landlords) and tenants on data center leasing transactions, including the negotiation of long-term leases. Our expertise with energy development, storage and procurement, as well as with telecom leases is deep. Our work also includes agreements for day-to-day operations of data centers, including Master License and Service Agreements for space and power, as well as exhibits that include customer service order forms; cross-connection order forms; service level agreements; and meet-me room rules and policies. We have represented data center operators with Service Organization Control (SOC) 2 compliant facilities with an Overall Tier III rating and a Tier IV rating on critical infrastructure.
We also advise clients on a range of data center compliance issues, including data privacy, cybersecurity, energy efficiency, tax and other development incentives, and permitting and environmental issues.
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