Data Centers

Soaring demand is driving the development of new data centers and reshaping the real estate landscape. Arnold & Porter’s Real Estate practice brings a multifaceted understanding of the complexities involved in acquiring and developing land assemblages for hyperscale data center projects. We excel in negotiating joint venture partnerships with co-developers and institutional investors, as well as securing acquisition, pre-development, and construction loans for data center development projects.

We advise investors, developers, and corporate users across the Unites States and internationally, with respect to the entire cycle of the development process. And as needed we bring in colleagues with corporate, cybersecurity, energy, environmental, finance, tax, telecommunications, and CFIUS capabilities.

Acquisitions: We advise on acquiring land assemblages for future data center developments, as well as established data center projects, including carrier hotels and other colocation facilities. Our acquisitions practice includes negotiating purchase agreements and conducting thorough due diligence specifically tailored to data center projects. This process not only covers traditional real estate components such as review of easements, title, and survey issues but (where applicable) includes review of tax, environmental, power, and CFIUS considerations.

Debt Financing: We lead negotiations on loan documents to help clients secure debt financing for every phase of their real estate projects. This includes initial land acquisition loans, pre-development loans, construction financing, and ultimately, stabilized financing.

Joint Ventures: A significant component of our practice involves negotiating joint ventures, whether with co-sponsors or institutional limited partners. As data center campuses increase in scale, cost, and complexity, these partnerships become the key to making deals work.

Leasing: We have experience representing developers and technology companies in the negotiation of specialized hyperscale data center leases.

Pre-Development and Development: The team frequently assists in negotiating development and construction management agreements that encompass both the pre-development and construction phases of data center projects.

Real Estate Funds: Members of our practice group collaborate with clients on the formation of investment funds focused on data center investments. This includes crafting partnership agreements and ensuring compliance with federal and state securities laws.