Navigating the data centre lifecycle

What are Data Centres?

Data centres are the backbone of the digital transformation, providing essential infrastructure for data storage, processing, and connectivity.  As demand accelerates, the regulatory environment has become more complex. To develop, finance and operate facilities with confidence, businesses need a clear 360 view of their obligations and risks.

From small server rooms to large, hyperscale facilities, success depends on understanding the full lifecycle and the legal issues at each stage.

• Plan: Site selection, real estate acquisition or leasing, planning and environmental permitting and grid connection.
• Power and cool: Grid connection, renewable power supply (PPAs), energy and water efficiency (PUE/WUE), cooling optimisation and heat reuse, ESG reporting and disclosure obligations.
• Finance: Investment structures, M&A, project finance and joint ventures.
• Build: Construction procurement, managing design, construction and fit-out contracts, ensuring building code compliance, and adhering to regulatory standards.
• Operate: Colocation and customer contracts, service levels and resilience, maintenance and facilities management, data protection and cybersecurity (e.g. NIS regimes).
• Use: End‑user procurement, lease/colocation terms for power and connectivity, SLAs (uptime, performance and latency), security (physical and cyber), compliance and assurance (data protection and data residency), and exit and data portability

Sustainability is now central to both new builds and live facilities, with growing pressure to cut carbon, reduce energy and water use, and demonstrate progress through credible reporting. As policy and regulation continue to evolve rapidly, organisations need joined‑up advice that connects ESG, procurement, contracts, operations and disclosure.

Speak to our cross‑disciplinary data centre team to discuss how we can help.

What you need to know now

The data centre industry is experiencing significant growth, driven by the increasing demand for digital services and data storage. However, this growth comes with complex regulatory challenges that impact developers, operators, investors, service providers, owners and end-users.   

Key regulatory areas include:

• Site Acquisition and Development:  Ensuring successful site selection and development through compliance with planning, real estate, environmental, and construction regulations. This incorporates zoning laws, environmental assessments, and construction standards to optimise site utilisation.
• Development regulations: Covering aspects such as real estate, planning, power procurement, water supply, telecoms, construction, and fit-out.
• Operational regulations: Covering leasing, service arrangements (IaaS, PaaS, SaaS), power procurement, and cybersecurity.
• Corporate regulations: Encompassing finance, tax, M&A, employment, and ESG.
• Environmental impact: Addressing power and water usage, location, size, function, heat usage, hydrogen for backup power, server age and usage, efficiency of programming languages, and carbon embedded in construction.
• Sustainability: Implementing green technologies and practices to reduce the environmental footprint of data centres.
• Cybersecurity: Protecting data and ensuring robust security measures.
• Emerging technologies: Adapting to advancements in cooling technologies, AI, and automation.

How we can help you

Our international lawyers work with clients across the entire data centre lifecycle, employing a 360 approach to navigate the regulatory landscape, identify opportunities and overcome challenges.

With extensive experience , we offer expert advice on planning, developing, operating, and maintaining data centres. Our comprehensive legal services span various service lines and jurisdictions, providing breadth and depth of expertise.

To address the broad range of regulatory issues effectively, we adopt a collaborative approach, working closely with developers, operators, investors, owners, service providers, and end-users, ensuring we encompass key area’s including real estate, energy, technology, and cybersecurity.

This includes:

Operators: Evaluating market opportunities, leasing, co-location agreements, managed services, energy connection, cybersecurity, ensuring regulatory compliance, implementing cybersecurity measures, managing complex contracts, and overseeing project delivery.

Developers: Site acquisition and development, planning, real estate, environmental and construction advice, financing, energy connection and backup power strategies, and regulatory compliance.

Investors/Funders: Corporate M&A, joint ventures (JVs), tax advice, ESG compliance, fundraising and ownership models, investment strategies, energy regulation, and planning law.

Service Providers/Supply Chains: Contract negotiation, supply chain management, compliance with industry standards, cybersecurity protocols, and operational efficiency.

End-users: Customised solutions for data storage and management, commercial contracts, data protection, contract negotiation, regulatory compliance, cybersecurity, and environmental sustainability.

Owners: Comprehensive management and maintenance of data centre facilities, ensuring operational efficiency, compliance with regulatory standards, strategic planning for future growth, and environmental sustainability.