Data Centers

Data centers form the backbone of today’s digital economy, enabling artificial intelligence (“AI”), cloud services, and other data‑driven technologies. Blank Rome’s data center team leads the way in advising businesses on complex and crucial data center initiatives. Working at the nexus of real estate, energy, and trade, our team delivers forward‑thinking solutions that help clients confidently build, expand, and invest in this critical digital infrastructure.

Data centers continue to power the digital infrastructure behind nearly every industry, and our multidisciplinary team provides the essential legal support for their development, financing, and operation. The rapid growth of AI and cloud computing has intensified demand, and with it, challenges have arisen, ranging from land acquisition and community pushback to energy and grid constraints. We counsel on major, high‑profile projects and have represented all key stakeholders, including data center developers, owners, investors, end users, hyperscalers, and contractors, giving us a comprehensive understanding of regulatory, political, financial, and operational risks, and the strategies our clients need to overcome them.

Additionally, we support clients by collaborating with engineering teams to review and secure environmental permits required for data center developments. This includes obtaining approvals for permits related to water, air quality, and other environmental considerations that may arise throughout the project lifecycle. We also provide assistance in managing and resolving environmentally related appeals.

How We Can Help 

Our firm supports clients in building, operating, and financing data centers by providing seasoned legal guidance that helps them maintain a competitive edge while minimizing potential risks and costs. We provide practical guidance and hands‑on support across a number of areas including:

Real Estate

Blank Rome’s data center team has guided clients through every stage of the data center asset life cycle, from site selection and acquisition, permitting, and power procurement to joint venture structuring, financing, development, construction, commissioning, leasing, purchase and sale agreements, and final disposition. We are also available to help clients handle real estate financing matters related to data centers, from both the borrower- and lender-based perspectives. Our team has assisted clients with negotiating co-location agreements as well as commissioning agreements in the data center construction and development process. 

Our data center team is supported by a national real estate practice offering comprehensive services across land acquisition, leasing, development and construction, land use, zoning, financing, and joint venture projects. Our strong relationships with local and state authorities help guide clients from early‑stage permitting and development through ongoing real estate risk management. Through our nationwide and global networks, we can efficiently partner with trusted local counsel in any jurisdiction. We have represented owners, developers, and contractors in the full range of design and construction agreements as data center projects move through the design and construction phase. We also have extensive experience navigating broad community opposition and guiding clients through the full approvals process to successfully complete their data center projects.

Real Estate Litigation

Blank Rome's Real Estate Litigation practice brings extensive experience to the data center sector, where the intersection of complex construction projects, sophisticated lease arrangements, and high-value commercial relationships create a uniquely demanding legal environment. The firm’s construction litigation team regularly handles disputes arising from large-scale development projects, including claims involving design defects, construction delays, cost overruns, mechanic’s liens, and contractor performance failures, issues that frequently arise in the buildout of mission-critical data center facilities. With deep familiarity in multi-party construction matters and the technical complexities inherent in purpose-built infrastructure, Blank Rome is well positioned to represent owners, developers, and operators throughout all phases of data center construction disputes, from pre-litigation negotiations through trial and appeal.

In addition to its construction litigation strengths, Blank Rome offers significant capability in complex lease disputes, breach of contract actions, and general commercial business litigation that are central to the data center industry. Data center operations depend on intricate lease structures, whether involving ground leases, colocation agreements, or build-to-suit arrangements, which can give rise to disputes over tenant improvements, service-level commitments, escalation provisions, and early termination rights. The firm’s litigators have substantial experience prosecuting and defending breach of contract claims in high-stakes commercial settings, and they understand the operational and financial pressures unique to data center clients. This comprehensive litigation platform enables Blank Rome to address the full spectrum of disputes that data center owners, operators, and tenants may encounter, delivering strategic counsel that accounts for both the legal complexities and the business realities of this rapidly evolving industry.

Energy

Blank Rome supports data center developers and long‑term owners with the full range of energy, regulatory, and procurement matters essential to maintaining reliable, cost‑efficient operations, while avoiding unwanted litigation proceedings. We structure and negotiate power purchase agreements (“PPAs”) and other offtake contracts with independent power producers, securing advantageous pricing, capacity commitments, and risk allocation. Our team also guides clients through federal and state regulatory requirements, including Federal Energy Regulatory Commission (“FERC”) compliance and public utility commission proceedings. 

We have experience handling complex “behind‑the‑meter” regulatory issues, supporting clients through licensing and permitting processes and addressing a range of power‑grid considerations to ensure their data center projects have the reliable power needed to move forward. Where local regulations and retaining local counsel is required, our firm has existing relationships with lawyers in jurisdictions across the country, which afford us the ability to seamlessly associate with experienced and trusted local counsel.

We advise data center developers on all required environmental permits and approvals, working with project teams to create efficient permitting strategies and reduce regulatory risk. Our experience spans air, water, stormwater, erosion and sediment control, wetlands, and other state and local environmental authorizations. We prepare applications, coordinate with regulators, and support compliance throughout the facility’s lifecycle.

Our team also conducts environmental due diligence for land acquisitions and long‑term leases, including Phase I and Phase II assessments, evaluation of contamination risks and liabilities, guidance on risk allocation in transaction documents, and coordination with consultants on remediation and risk‑management strategies.

International Trade

As global trade barriers rise and regulatory frameworks grow more complex, data centers face increasing pressure to navigate customs valuation, rules of origin, import and export controls, and maintenance-related trade issues. Addressing these challenges requires a well-designed legal strategy tailored to the operational realities of data center infrastructure.

Our international trade attorneys can help with:

• Negotiating equipment procurement agreements and navigating international issues related thereto, including maritime shipping and insurance matters
• Sanctions and import/export controls compliance, especially regarding rare earth minerals, semiconductors, and specialty tech equipment 
• Navigating foreign investment requirements under the Committee on Foreign Investment in the United States (“CFIUS”)
• Navigating export license requirements and re-export liabilities
• Determining the country of origin for data center equipment and compliance with customs classification and valuation requirements
• Advice on Information and Communications Technology and Services (“ICTS”) rules administered by the U.S. Department of Commerce
• Navigating the full impact of new or developing tariffs

Public-Private Partnerships

Blank Rome’s public-private partnership (“PPP”) attorneys have been integral to some of the most significant and complex infrastructure transactions in the market. In the data center and digital infrastructure space, our team brings solid industry knowledge, applying current market practices and delivering practical, commercially driven advice across a broad range of project structures and asset classes. We provide strategic legal counsel on the development and financing of new data center projects, the privatization of existing assets, the restructuring of distressed investments, and related transactions throughout the project lifecycle.

Our experience spans a diverse client base, including hyperscalers, project sponsors, government agencies, equity investors, lenders, operators, and contractors. Our ability to execute complex infrastructure projects on accelerated timelines is rooted in a comprehensive understanding of our clients’ businesses and the industries in which they operate. Blank Rome offers a comprehensive suite of PPP services, including drafting and negotiating concession agreements, structuring equity and debt financings and capital markets transactions, and advising on construction and engineering contracts, among related matters.

What Sets Us Apart

• Ranked Tier 1 in 2025 Best Lawyers® “Best Law Firms” (Woodward/White, Inc.) for Real Estate Law nationally and in Philadelphia and New York City; regionally recognized in Washington, D.C., and Los Angeles.
• Ranked Tier 1 in Best Lawyers® 2025 “Best Law Firms” for Energy Law in Washington, D.C., and highly ranked in Philadelphia and nationally.
• 2025 Best Lawyers (Woodward/White, Inc.) national ranks:
• Environmental Law (Tier 1)
• Litigation – Environmental
• 2025 Best Lawyers (Woodward/White, Inc.) regional ranks:
• Litigation – Environmental in Philadelphia (Tier 1) and New Jersey
• Environmental Law in Philadelphia (Tier 1), Pittsburgh, and Washington, D.C.