Data Center Development

Kutak Rock has spent the last five years delivering strategic legal support that helps drive data center development projects forward. The firm’s experience across key facets of this rapidly expanding industry has kept our team at the forefront of legal service providers, assisting clients nationwide in developing and operating data centers and related infrastructure in an efficient and cost-effective manner.

Our Data Center Infrastructure practice offers multidisciplinary experience across many areas key to developing data centers, including:

• Securing site control and solving related real estate issues on private and federal and other governmental land;
• Navigating utility and related electric service issues, including negotiating long-term electric service agreements, grid interconnection use and integration of behind the meter generation resources, and related regulatory issues;
• Identifying and negotiating state and local tax (SALT) incentives and development agreements;
• Negotiating financing for data center and energy projects;
• coordinating environmental review and related permitting;
• Supporting projects through construction and commencement of operations; and
• Preparing facility service agreements and developing related policies.

From a single facility to multi-site campuses, we understand that data centers are not simply real estate assets—they are mission-critical infrastructure requiring legal insight based on experience.

Our integrated approach helps our development clients overcome regulatory hurdles, secure necessary incentives, and deliver resilient, efficient facilities that support the global digital economy.

Our attorneys advise on matters involving:

Site Control and Development

• Land acquisition (purchase agreements, leases, deeds, easements, licenses, etc.) including assemblages 
• Title, survey and other due diligence
• Zoning, land use and permitting approvals
• Management of long-term operations
• Projects located on or adjacent to federal land including Department of Defense and Department of Energy facilities

Power and Related Infrastructure/Energy Procurement and Renewable Integration

• Structuring and negotiating long-term electric service agreements, power purchase agreements, virtual and sleeved PPAs, and renewable energy certificates 
• Interconnection of data centers to the grid, and the interconnection of any generation resources that will provide power the data center, including related interconnection and infrastructure agreements
• Navigating regulatory frameworks governing electric power markets, including knowing how the transmission and distribution grids are regulated, including navigating independent system operator procedures and tariffs 
• Integration of renewable energy sources and achieving sustainability objectives

Financing and Incentives 

• Financing structures for the data center and the energy projects
• Federal and state financing incentives under loan, grant and incentive programs
• Public-private partnership (P3) arrangements
• State and local tax (SALT) abatements and exemptions
• Payments in lieu of taxes (PILOTs)
• Infrastructure development and service agreements with state and municipal authorities

Environmental Review and Compliance

• State and federal environmental review processes
• Assessments related to power and water usage
• Permitting, mitigation and compliance with environmental and sustainability regulations

Engineering, Procurement and Construction (EPC)

• EPC and design-build contracts
• Construction risk allocation, insurance and performance guarantees
• Project management and dispute resolution

Data Center Leasing and Service Agreements

• Colocation and hyperscale leasing agreements
• Cloud services and managed hosting contracts
• Service level, uptime and maintenance agreements

Our Clients:
We represent clients across the data center industry, including:

• Developers and Operators
• Financing parties 
• Cloud Service Providers and Hyperscalers 
• Energy and Utility Companies
• Construction and EPC Contractors
• Municipalities
• Project/Construction Managers

Experience:
Recent projects facilitated by our firm include: 

• Represented a global technology company in a $4 billion data center development.
• Represented a data center developer in connection with a $6 billion, 329-acre data center campus project in Mississippi.
• Represented a hyperscaler technology company in multiple data center projects in Arkansas, Minnesota and Nebraska.
• Assisting municipal clients to analyze data center development issues, including on federal land.