Data Centres

Utility provision

• Green energy procurement

• Heat recovery and heat networks

• On-site renewable generation

• Uninterruptible power supplies, on-site energy storage

The energy challenge

As data centres are online 24/7, they have a need for reliable and consistent power. This means electricity procurement strategies are key for data centre operators. Our specialist Energy team has deep expertise in advising on power procurement structures (including grid supplies as well as private wire, sleeved, and virtual power purchase agreements), on-site renewable energy solutions, and conversion of existing electricity generation and storage sites to data centres.

Data centres also require significant cooling and produce considerable volumes of effluent heat. Our dedicated Heat Networks specialists have experience of advising on heat recovery projects, and advising new-build industrial projects (such as data centres) on establishing heating and cooling frameworks. These types of projects can help solve key problems for data centre operators, whilst also providing an additional revenue stream.

We advise on a wide range of operational and maintenance contracts, and we are very experienced contract negotiators.

Technology:

Our IT lawyers have led negotiations for some of the largest and most complicated IT projects ever undertaken, as well as working on extremely innovative technology projects. Our IT specialists advise regularly on:

• data centre/hosting contracts

• VAR (value added reseller) agreements

• IT support and maintenance

• connectivity contracts (WAN, LAN, internet, WiFi)

• IT outsourcing

• multi-sourcing

• IT managed services arrangements

We regularly work with clients developing new technologies and partnering with third parties, supporting them with:

• registering and protecting all types of intellectual property rights (including patents and trade marks)

• partnering and joint venture agreements

General Commercial contracts expertise

As well as expertise in negotiating goods and services contracts, we have experience of assisting property owner with facilities management contracts and data centre specific arrangements which typically include the full range of services required by a property owner - security, cleaning, catering, maintenance both planned and reactive, either delivered by different service providers or as part of an outsourced service management contract that delivers all of the required services.

Businesses work with us because we pride ourselves in not only delivering technical legal advice but also recognising the importance of understanding their business, the sector in which they operate and the challenges they face on a day-to-day basis.

We advise landowner and developer clients on the acquisition and disposal of data centre projects including site and title due diligence, and drafting and negotiating options to purchase and ancillary grid and data easements and wayleaves, and ancillary working include telecoms code agreements, operator leases, DNO substation leases, etc.

We also support with commercial heads of terms and bespoke transfer provisions including restrictive covenants, easements, deferred consideration and overage and can advise on all stages of the project from site assembly to construction and operation through to decommissioning, and disposal at any stage in the project.

We also advise on:

• Construction

• Financing

• Tax structuring

• Risk and dispute management

• Planning and consenting

Data centre development and operation sit at the centre of the net zero trasition: power-hungry sites face intense scrutiny on carbon impact, resource use and planning, while investors and occupiers increasingly expect robust ESG credentials. Our Clean Energy, Waste and Sustainability group helps data centre clients manage that risk and turn it into commercial advantage.

• ESG reporting, legal risk registers and horizon-scanning on sustainability-related regulation

• Reviewing sustainability claims and marketing to manage greenwashing risk

• Green loans and sustainability-linked finance for data centre development, refinancing and retrofit

• Waste and circular economy advice, including e-waste, hardware decommissioning, resource recovery and end-of-waste strategies

Data centre schemes are increasingly shaped by biodiversity and nutrient/water neutrality requirements at the planning stage. Our dedicated Natural Capital team, recognised as one of the most prominent legal advisers in this emerging sector, helps developers and investors navigate these requirements and unlock value from nature-based solutions.

• Biodiversity Net Gain strategy, habitat bank set-up and BNG unit purchase agreements

• Nutrient and water neutrality credit purchase agreements, including due diligence on related Section 106 agreements

• Structuring and financing natural capital projects, including the use of conservation covenants

• Advising landowners and project developers on creating and selling biodiversity units and nutrient credits