Data Centers and Digital Infrastructure

Why Cooley

Data centers are the backbone of our digital economy, serving as critical infrastructure for global communication, commerce and innovation. The demand for reliable, scalable, secure data center solutions has never been greater, with industries ranging from tech to finance relying on these facilities to store and process vast amounts of information. The industry’s significance is underscored by its exponential growth and role in enabling everything from cloud computing to artificial intelligence (AI). Cooley’s data center practice has been an industry leader since the 1990s, helping clients navigate this rapidly evolving sector. Our breadth and depth of experience are unmatched, making us the trusted partner for a full range of data center-related legal and strategic needs.

With team members on the ground in the heart of Northern Virginia (NOVA), regarded as the epicenter of the data center world, Cooley is perfectly positioned to provide national and international guidance. The predominant challenges companies in this sector face, after all – whether involving building, operating, leasing or owning data centers – are fundamentally the same across locations. Our ability to anticipate issues, navigate complexities and deliver innovative solutions is built on a deep understanding of what it takes to succeed in the data center industry, regardless of geography.

The rapid proliferation of AI is fundamentally reshaping the data center industry. AI workloads require exponentially greater computing power, causing an unprecedented demand for data center capacity. This transformation is driving hundreds of billions of dollars in capital investments as companies race to expand, upgrade and optimize their infrastructure to support AI-driven applications. Cooley’s experience and perspective make us the standout advisor to clients navigating and capitalizing on this boom in AI-related data center development and operations. Whether companies are integrating AI workloads into existing facilities, developing next-generation data centers or navigating complex financing and regulatory landscapes, our team provides the insight and experience necessary to achieve success in this new era of digital infrastructure.

What sets Cooley apart

• National reach with key local experience: While deeply rooted in NOVA, our practice extends across the US, offering guidance on all aspects of the ecosystem, including entitlements, dealings with power companies, acquisition and disposition of data centers, and property entitled or unentitled for data center use.
• Industry-specific knowledge: We have experience in wholesale leasing, colocation agreements, full-building and campus leasing, and every aspect of data center development, acquisition and operations. From environmental issues and power procurement strategies to user agreements and service-level agreements, our team provides comprehensive, end-to-end support.
• Proven track record: With decades of experience handling complex transactions, high-stakes M&A deals involving real estate and private equity, as well as ancillary agreements, we have successfully advised clients on some of the most significant projects in NOVA and beyond. Our practical knowledge spans from negotiating tax incentives to addressing operational challenges.
• Comprehensive, multidisciplinary support: Our team is a complete solution for investors, developers, operators and users participating in the data center and digital infrastructure realm.

Our experience includes:

• Acquisition and disposition of entitled and unentitled data center land
• Cloud service agreements
• Construction finance
• Cybersecurity and data privacy
• Economic incentives
• Entitlement processes
• Environmental diligence
• Intellectual property and licensing
• Leasing structures, including colocation and full-building and campus leasing
• Litigation and dispute resolution
• Negotiation and development of construction agreements
• Negotiation of lease and purchase agreements for critical equipment
• Power cost, reliability and availability strategies
• Power solutions and telecommunications/network connectivity
• Regulatory matters
• Site selection support