Sidley Leads the Way in Data Center Projects
Sidley’s cross-disciplinary team is leading the way for the growth of data centers, helping various industry participants — spanning data center developers and operators, equity investors and lenders, and hyperscalers and power providers — navigate the commercial, regulatory, and financing demands of this rapidly evolving sector. Combined with our industry-leading power development team and deep experience in the digital world, our cross-practice team advises on the full lifecycle of data center development, investment, and operations, delivering practical guidance grounded in deep industry experience to navigate the critical intersection of data needs and power in this fast-growing sector.
Our extensive work for global data centers spans:
- Project finance and development: Structuring and financing large-scale development, expansion, and infrastructure projects.
- Debt and capital markets financing: Supporting debt and equity offerings for data center platforms and related infrastructure vehicles.
- Supply and service agreements: Drafting and negotiating various operational agreements including power, cooling, fire, facilities management, and applications and hardware.
- M&A and joint ventures: Guiding strategic acquisitions, divestitures, platform builds, and partnership arrangements.
- Real estate: Managing site control, development, zoning, leasing, and related commercial real estate issues.
- Environmental and regulatory counseling and permitting: Counseling and defending clients on permitting, sustainability, resource considerations, and air, water, waste, and noise compliance obligations.
- Cybersecurity and data privacy: Navigating evolving cyber risks, regulatory frameworks, and global privacy requirements.
- Technology transactions: Negotiating data center services, colocation, cloud, and other technology-driven commercial agreements.
Sidley provides forward-looking, commercially grounded counsel to clients across the data center ecosystem, helping them deploy capital, scale efficiently, and operate with confidence in a fast-moving market. Leading data center players choose Sidley to advise on their most sensitive and high-profile matters, knowing we understand the legal and business issues they face. Our lawyers are regularly recognized for their work by Chambers Global (2012-2025), Chambers USA (2012-2025), Chambers Asia-Pacific (2012-2025), Chambers UK (2021-2025), Chambers Singapore (2012-2025), Chambers Indonesia (2013-2025), Best Lawyers’ Best Law Firms® Survey (2013-2025), and many other industry publications.
Representative Matters
Our team has helped clients navigate a wide array of challenges for data centers based around the world, including representing:
- VoltaGrid LLC, a leading provider of modular, behind-the-meter power solutions for hyperscale data centers, industrial applications, and the energy sector, in its US$5 billion comprehensive financing package, consisting of US$2 billion of senior secured second lien notes due 2030 and a US$3 billion asset-based revolving credit facility.
- VoltaGrid LLC in its strategic collaboration with Oracle Corporation to deploy more than 2,300MW of ultra-low-emissions power infrastructure to support the energy demands of Oracle Cloud Infrastructure’s (OCI) next-generation AI data centers.
- Advanced Power, a leading independent power developer and asset manager of innovative power infrastructure, in its acquisition by ArcLight Capital Partners (ArcLight), including an initial US$1 billion equity commitment to build new power infrastructure, along with the potential to invest more than US$5 billion of equity over the next five years to enable over 20GW of new power and the acceleration of North America’s AI and data center infrastructure growth.
- Vantage Data Centers, a DigitalBridge portfolio company, regarding a joint venture to operate a power generation facility and associated behind-the-meter power purchase arrangements.
- DigitalBridge Investment Management in the launch of the Xenith IG fiber platform in Asia. Xenith IG was jointly formed by DigitalBridge’s investment management arm and funds affiliated with Columbia Capital.
- Stonepeak, a leading alternative investment firm specializing in infrastructure and real assets, on its US$1.3 billion preferred equity investment into Princeton Digital Group (PDG), a leading developer and operator of internet infrastructure whose portfolio of data centers powers the expansion of hyperscalers and enterprises in the fastest-growing digital economies across Asia.
- Stonepeak on its US$650 million strategic, preferred equity investment into AGP Sustainable Real Assets, a Singapore-based global infrastructure and real assets developer and operator, whose assets include data centers. “Highly Commended” for “Best Infrastructure Deal – Singapore/APAC,” FinanceAsia Achievement Awards 2024.
- Mercury Data Center BidCo, S. de R.L. de C.V., a subsidiary of I Squared Capital, in securing a US$375 million financing senior secured facility and US$40 million revolving facility for the refinancing of certain senior facilities and related debt service requirements in connection to its data center business in Latin America.
- Antin Infrastructure Partners on the acquisition of FirstLight Fiber, who provide fiber-optic data, internet, data center, cloud, unified communications, and managed services to enterprise and carrier customers.
- GDS Holdings Ltd (GDS), a leading developer and operator of high-performance data centers in Asia with a diverse international investor base, on its partnership with the Indonesia Investment Authority (INA), Indonesia’s sovereign wealth fund, to develop and expand the data center landscape in Indonesia.
- Cologix in its acquisition of a new cloud gateway data center in Silicon Valley — a five-acre, 9MW campus, with room to expand by a further 10MW.
- An international real estate fund manager in a bid to acquire a portfolio of core-powered shell data centers in the U.S.
