As the rapid growth of the digital economy increases the demand for sophisticated infrastructure to store, process, and transmit data, clients turn to Steptoe for advice and counsel to navigate the opportunities and legal risks inherent in the evolving data center landscape.
Although the surge in demand for data centers is a recent trend, the components that impact data center development, operation, and maintenance are not new. For years, Steptoe lawyers have been providing comprehensive legal solutions across the real estate, energy, project finance, corporate, tax, environmental, intellectual property, political law, and competition law spaces.
Our tailored approach serves a diverse range of clients, including developers, owners, operators, lenders and energy providers, giving us deep insight into every stage of the data center lifecycle—from development to operation and maintenance. As a result, Steptoe is uniquely positioned to provide customized and comprehensive support across key areas including:
- Site Selection, Design, and Construction – Advising on acquisitions, leases, zoning, due diligence, design agreements, and joint ownership structures.
- Power Purchase Agreements – Negotiating virtual and behind-the-meter power purchase agreements tailored to the unique energy needs of data centers.
- Connectivity and Market Operations – Guiding clients on utility connections, data transmission infrastructure, and compliance with grid and market rules.
- Redundancy and 24/7 Operations – Providing counsel on backup power, cooling systems, and uninterrupted operational needs.
- Environmental and Sustainability Advising – Assisting with permitting, regulatory compliance, ESG goals, sustainability reporting and clean energy sourcing.
- Tax and Incentives – Identifying and securing tax benefits and government incentives at federal, state, and local levels.
- Product and Operations Compliance – Ensuring adherence to regulatory standards for equipment, facilities, cybersecurity, and certifications such as ISO 27001 and HIPAA.
- Trade and Supply Chains – Managing import/export controls, sanctions, and supply chain logistics.
- Litigation and prelitigation advice – Representing clients in disputes through informal resolution or formal proceedings across jurisdictions.
- Finance Structuring – Offering expertise in data center financing, including project financings, tax equity, and sustainability-linked credit facilities.
- Political Law – Ensuring compliance with the various transparency and ethics obligations that emanate from engagement with local and state officials regarding tax credits, permitting, licensing, and other necessary approvals to establish and maintain large-scale data centers. Steptoe can assist in ensuring data center developers are in compliance with lobbying, pay-to-play, campaign finance, conflicts of interest, and other applicable government ethics obligations as a failure to do so can jeopardize the project or create unnecessary legal and reputational injury.
