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Data Centres

The role of data centres

Data centres have become the backbone of the modern digital economy, underpinning everything from cloud computing and artificial intelligence to financial services and government infrastructure. Their criticality lies in their role as the physical infrastructure that stores, processes, and distributes vast volumes of data in real time. 

The increase in demand is unprecedented, largely driven by a few key factors:

AI

There is currently an “AI gold rush”. New AI products are coming to market continuously, whilst existing products are being retrofitted with AI capabilities.

Agentic AI is now starting to enhance executing workflows in a way that GenAI has done for creating content.

However, AI is incredibly data centre resource-heavy and the AI boom has driven unprecedented demand for computing power. Agentic AI relies on good, clean data. This is leading to the replication of data sets into one new repository – leading to even greater need for data centre resources. 

Cloud Service Providers

Cloud adoption has risen in recent years more than expected.

  • Consumers now receive much of their television, music and video gaming content  streamed over the internet. They no longer store their data locally but instead use cloud services to hold their data online, (often unintentionally) multiple times over.
  • Businesses are increasingly moving away from on-prem solutions, favouring constantly improving and evolving cloud solutions. The breadth of the capabilities of solutions available to them is ever expanding and it is increasingly easy to integrate  cloud systems.

IoT

The number of IoT (the Internet of Things) devices is estimated to have already almost reached 20 billion, but is set to expand exponentially. All these devices are creating an ever larger quantity of data needing to be processed and stored.

The growth in data centres

Global investment in data centres reached $57 billion in 2024 alone. In the UK, government strategy is also playing a pivotal role. The UK has plans to bolster AI infrastructure through initiatives like AI Growth Zones and the development of a National Data Library. These efforts aim to ensure that the UK remains competitive in the global AI race by investing in high-performance computing and expanding data centre capacity.

However, the sector is grappling with power constraints, rising construction costs, and community resistance, particularly in high-demand regions – and these pressures are prompting developers to explore new financing models and more sustainable, community-friendly designs.

Data centres require multifaceted legal, regulatory, and operational support due to the complex interplay of real estate, infrastructure, construction, connectivity, environmental compliance, utilities, and service-level contracts – and that is where our data centre team are ideally placed to support you.

Key contacts

Contact our data centres team

Our data centre experience

Freeths has a long-standing track record of advising data centre operators, developers, occupiers, and investors, as well as those contracting to take halls, racks or space generally in data centres. 

Our team has acted on some of the most complex data centre transactions and infrastructure projects in the UK.

This includes working on projects involving:

  • Microsoft Azure
  • AWS
  • Google
  • Experian
  • Team Blue

How our specialist Data Centre team can support

Our specialists have the capability and expertise to deliver legal solutions across the full lifecycle of a data centre, from acquisition and construction through to leasing, operational management, and divestment.

We combine legal precision with commercial pragmatism to help clients navigate the challenges of delivering resilient, future-ready data infrastructure, as well as managing any disputes which may arise.

Our expertise

We also advise on:

  • Construction
  • Financing
  • Tax structuring
  • Risk and dispute management
  • Planning and consenting

Integrated

We are an integrated nationwide team offering the complete range of services needed for transactions of all sizes. As a result, we can advise on all aspects of your project and are experienced in coordinating the input of lawyers to provide our clients with an integrated service.

Strength & Depth

We have the strength and depth of resource, market knowledge and expertise required to bring projects to a close. Our team members have top level experience of advising on infrastructure and major projects, with many of our lawyers having joined us from Magic Circle and other City firms.

Deliverability

Our team members have great legal skill with the ability to deliver complex projects involving multi-disciplinary teams both efficiently and cost effectively.

Commercial

You can trust us to be commercially-minded, readily accessible and available to provide clear solutions.

Notable work

Testimonials

  • "They are very personable and always available at short notice. All deliverables and support are of high quality and performed efficiently."

    Chambers & Partners, 2024

  • "Freeths take a pragmatic approach, delivering strong legal support balanced with the technical and commercial considerations of our industry."

    The Legal 500, 2023

Meet the team

Chris Holwell's Profile

Chris Holwell

Partner & National Head of Construction & Engineering

Shraiya Thapa's Profile

Shraiya Thapa

Senior Associate, Knowledge Management Lawyer

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