Crucial to the modern digital economy.
Data centers power the digital services that, in turn, power virtually all industries today. Our multidisciplinary team provides comprehensive legal solutions for the development, financing, and operation of those critical data centers.
The demand for data centers, fueled by the growth in AI and cloud computing, has exploded in recent years. That move has brought with it business and legal challenges, from land acquisition to community opposition to power and grid constraints.
Husch Blackwell’s team has tackled all the issues data center projects face. We routinely advise on large, high-profile projects and have represented all key stakeholders, including data center developers, hyperscalers, investors, lessee end-users, contractors, and energy companies. This experience has given us a comprehensive understanding of project risks—whether regulatory, political, financial, or operational—and the strategies needed to achieve client goals.
Real Estate and Land Use
Our team is backed by a national real estate practice that provides a full suite of services including land acquisition, leasing, land use and zoning, and permitting. Our deep relationships at the local and state level across our national footprint are an asset in guiding clients from early-stage development through the management of ongoing real estate risks. As projects progress to the design/build stage, we have experience representing both project owners and contractors in the various design and construction agreements at play.
Contracts and Licenses
At the heart of data center operations is a stack of complex, interlocking agreements. Our team is adept at drafting and negotiating the full suite of contracts. We handle leases, use licenses, colocation agreements, hosting agreements, outsourcing agreements, fiber access agreements, fiber ring agreements, indefeasible rights of use agreements (IRU), and power purchase agreements (PPAs), among others. We also counsel clients on vendor contracts related to data security.
Project Finance
Clients rely on our finance team to provide advice at all phases of data center development and operation. We are experienced lender and borrower counsel and counsel clients on traditional financing vehicles, including construction loans, terms loans, revolvers, and mezzanine debt, as well as financing related to public-private partnership agreements (P3s), hybrid P3 procurements, and cash equity transactions.
Tax Strategy and Incentives
Husch Blackwell provides sophisticated tax counsel for data center development, helping clients navigate the full landscape of federal, state, and local tax considerations. We structure transactions and ownership models to maximize depreciation opportunities, reduce liabilities across jurisdictions, and ensure compliance with evolving tax regulations. Our team regularly negotiates property tax abatements, sales and use tax exemptions on equipment, utility tax reductions, and PILOT agreements, and develops strategies to monetize available credits.
Our Development Incentives & Tax Credits team helps clients access the full spectrum of incentives used to support data center projects nationwide. We identify and layer multiple programs—including investment tax credits for energy-efficient and renewable installations, historic and brownfield tax credits, new markets tax credits (NMTC), tax increment financing (TIF), community improvement districts (CID), and transportation development districts (TDD)—to strengthen project economics.
Environmental
Husch Blackwell provides environmental guidance on data center projects throughout the country, guiding clients through due diligence, site assessments, and contamination evaluations and remediation strategies to mitigate risk before acquisition. We navigate federal and state permitting for air, water, and waste management, including NEPA requirements when applicable. We also assist with assessments and studies that may affect development timelines. We advise on remediation strategies, regulatory negotiations, and, if necessary, enforcement actions. Our work allows data center developers to advance their projects while effectively managing environmental risks and responsibilities.
Energy Regulatory, Structuring, and Offtake
Husch Blackwell advises data center developers long-term owners on the full spectrum of energy regulatory and procurement issues critical to reliable and cost-effective operations. We structure and negotiate PPAs and other offtake arrangements with independent power producers, ensuring favorable pricing, capacity terms, and risk allocation. Our team also supports renewable energy procurement strategies that advance sustainability and ESG objectives.
We help clients navigate federal and state energy regulation, including FERC compliance and public utility commission proceedings. Our attorneys guide projects through large-load utility interconnection requirements, permitting for supporting energy infrastructure, and structuring favorable utility rate agreements tailored to high-demand data center loads. We also advise on opportunities to integrate energy tax incentives and renewable generation assets into project structures.
With experience across traditional and renewable energy markets, Husch Blackwell delivers solutions that balance regulatory demands, operational resilience, and long-term cost efficiency, providing data center projects with the power strategies needed to grow in an increasingly complex energy landscape.
Corporate Transactions
Our team serves as lead counsel on data center-related transactions, including acquisitions and dispositions, joint ventures, and sale/leaseback transactions. We also counsel clients in connection with foreign investment in U.S. data centers. Our transaction team includes experts in data security, supply chain, and other relevant areas.