Orrick’s Business and Legal Guide to Data Centers

This guide provides a comprehensive analysis of the legal, commercial, and regulatory considerations involved in developing, financing, and powering data centers. It outlines the significant challenges that data center developers face, including managing energy demands, navigating regulatory frameworks, and addressing community concerns regarding environmental impacts. The document discusses the importance of securing a social license to operate, which involves proactive engagement with local stakeholders. It also details the evolving financing strategies in the data center sector, highlighting the shift towards securitizations and project financing. The report emphasizes the critical need for innovative energy solutions to meet the projected increase in power demand, particularly from hyperscale data centers. Additionally, it addresses the implications of water and land use, urging developers to adopt sustainable practices and collaborate with local authorities. This guide serves as a resource for stakeholders aiming to effectively navigate the complexities of the data center industry.