Data Centers

• Representing large renewable energy producer in connection with contemplated development, construction, and operation of small modular nuclear reactor (SMR) designed to meet data center energy needs.
• Assisting on long-term strategic planning for advanced large-scale sources of zero-emission power for data centers. Next-generation sources include advanced nuclear fission (small modular reactors (SMR) and Generation IV), advanced geothermal, nuclear fusion and advanced sodium-based storage solutions.
• Advising on physical power purchase agreements and virtual power purchase agreements for supply of electricity for data centers.
• Representing utility in connection with contemplated power purchase agreement for data center needs in connection with development, construction, financing, and operation of SMR.
• Review of numerous data center power purchase agreements (virtual and involving energy delivery) in connection with acquisitions and contemplated acquisitions of renewable energy generation asset portfolios.
• Working with an international environmental organization on its Nuclear Scaling Initiative, which seeks to aggregate demand for SMRs among energy intensive end-users, including data centers.
• Working with a separate international environmental organization on a contracting methodology to spread the risks for first-of-a-kind (FOAK) nuclear reactor design, construction and operation amongst a group of users, including data centers.
• Advising startup company seeking to develop and deploy nuclear assets for generating the power needs of data centers and other industrial users.
• Advising several SMR and advanced reactor nuclear vendors on regulatory and generation issues associated with power development for data centers.
• Advising national energy association on regulatory and policy matters supporting the deployment of SMRs and advanced reactors for a variety of commercial and industrial applications.

Development, Finance and Investment

• Drafting and negotiating technology/data center/colocation design and construction agreements since the early 2000s, from the original Internet service providers to the colocation and large technology companies of the present, and the real estate industry associated with the centers.
• Pillsbury attorneys understand the unique aspects of data center design and construction, from proper site diligence for large dedicated facilities (often in brownfield environments), to the power, cooling, building management, interconnection, reliability, and security needs upon which the IT infrastructure must rely, to the changing standards and best practices in the industry. This work includes broad familiarity with market terms for key contract provisions unique to data center construction such as liability and business interruption insurance, equipment warranties, performance guaranties, force majeure, and liquidated damages.
• Advised on the engineering and construction of heat exchangers and related developments for an award-winning Central Energy Facility for a major university, focused on services to its data centers. The project cools data centers and warms occupied buildings across an extensive campus.
• Advised on contracts for the design and construction of data center facilities in San Jose and New York City. Attention was focused on multiple power circuits and storage for redundant supply and resistance to blackouts and seismic conditions for uninterrupted power.
• Currently advising a real estate developer on the architect agreement and construction contract for the development of a new, build-to-suit, 460,000 SF Class A office building, research facility, and data center, which building will serve as the headquarters for a major defense contractor in East Hartford, Connecticut. Design costs exceeded $12,000,000 and the GMP under the construction contract is approximately $400,000,000.
• Counseled and led due diligence efforts in connection with the development of data centers and renewable energy developments
• Advised a major bank on more than 30 transactions to effectuate their digital transformation strategy, including arrangements with major technology companies; assisted in the acquisition and integration of a technology platform, sale of data centers, and leasing them back during a transition period.
• Advised various clients on obtaining foreign direct investment review clearance in the US and EU, including in relation to data center acquisitions.
• Advised founders on the establishment of a $1 billion investment platform focused on acquiring and developing data centers and related digital infrastructure assets across the Asia Pacific region.
• Advising a provider of Digital Infrastructure as a Service on its strategy to provide energy as a service to the energy-intensive IT sector, including development, construction and financing of SMRs to be collocated with data centers.

Services for Data Center Clients

• Advised numerous Fortune 100 and emerging growth companies, including in regulated industries like financial services and healthcare, in connection with data centers. Activity includes consolidation initiatives, data center migrations, co-location deals, and information technology outsourcing deals (ITOs) that include data center support on a remote and hosted basis. Additionally, our team has negotiated data center leases and agreements for space and services for our clients with nearly all of the leading data center providers, which has given us deep familiarity with their market terms, structures, and other essential aspects of these types of deals.
• Negotiated a large outsourcing that includes data center hosting, end user support, help desk, application management) and claims processing.
• Advised public entity on sourcing of data center services (including co-location and hosting), shifting from older mainframe-centric data centers to more modern high-density server-centric data centers.
• Represented retail company in a full scope IT outsourcing, including data center, network (voice and data), end user computing, store support, web hosting, and applications development and maintenance services.
• Advised global service provider’s Asia business on a multiparty arrangement to migrate a food processing company’s existing data centers, then managed by a third party, to the AWS cloud and then provide infrastructure services.

Operating and Security

• Assisting several nuclear utilities on physical security and cybersecurity issues associated with current and advanced reactors.
• Advising on artificial intelligence applications for data centers, including operation, data center infrastructure management (DCIM), power, cooling, and cybersecurity threat detection and response.
• Advising on regulatory compliance advice on environmental, safety and health and sustainability issues germane to data centers, including environmental compliance standards, sustainability standards for electrical usage and end-of-life management of e-waste, general OSHA provisions pertaining to high voltage electrical usage, fire protection and PFAS regulation for fire suppression equipment, and facility and contractor safety policies, tenant insurance coverage, and waste management.