Data Center Bytes

Join us for the next chapter in Morgan Lewis’s Data Center Bytes webinar series Navigating the Capacity Race. This upcoming series dives into the big opportunities and pressing challenges shaping the fast-moving data center world.

While data center leases need to include most of the standard provisions of typical warehouse or manufacturing facilities’ leases, special attention should be given to their unique operational needs and special investments for the site. When leasing a data center building it is essential, among other things, to ensure the lease will address a high level of security, protect the privacy of both the tenant and the premises, and provide for continuity of operations throughout the lease term.

A landmark set of US-UK agreements signed during US President Donald Trump’s 2025 state visit is poised to accelerate deployment of advanced nuclear technologies—and with it, nuclear-powered infrastructure like data centers. As part of the broader Technology Prosperity Deal, the United States and United Kingdom committed to developing secure AI infrastructure, including high-performance computing and data centers that will be increasingly powered by clean, reliable nuclear energy. This collaboration highlights how advanced reactors can play a central role in supporting the energy-intensive AI and digital economy.

The explosive growth of artificial intelligence has fueled a surge in data center projects across the United States, with industry forecasts projecting $475 billion in spending for 2025 alone and trillions more over the next decade. Recent federal initiatives, including streamlined permitting and funding through the administration’s AI Action Plan, are expected to accelerate this trend.

The private equity landscape in the data center sector is evolving rapidly, with increasing demand for digital infrastructure fueling record levels of investment. To help investors and advisors navigate this dynamic market, we’re hosting an exclusive session as part of our In the Know: Private Equity – 2025 Webinar Series.

In a major move to bolster US digital infrastructure, the White House issued an executive order on July 23, 2025 aimed at accelerating the federal permitting process for data centers and related infrastructure. The order is part of a broader strategy to support rapid deployment of artificial intelligence (AI) technologies and meet growing power demands.

The US administration released its Artificial Intelligence (AI) Action Plan (Plan) on July 23, 2025. This Plan seeks to encourage innovation in AI along with an aggressive buildout of AI data centers, as well as the energy infrastructure needed to power them.

At the 2025 “Choose France” summit, several major data center projects were announced, underscoring the country’s growing appeal for digital infrastructure investment. Backed by a national push for artificial intelligence development and access to low-cost, carbon-free electricity, France offers strong fundamentals for data center operators. Companies entering this growing market must navigate environmental, energy, and urban planning laws and regulations.

As we have previously written, the rise in data center development has significantly increased predicted electricity demand. As a reliable, carbon-free source of baseload power with an average capacity factor of 93% in the United States, nuclear energy is well-suited for powering data centers. On May 23, 2025, President Donald Trump signed four executive orders intended to accelerate the development of US nuclear energy, in part to provide reliable power for data centers.

Buoyed by robust demand for large parcels of undeveloped land, the rise of artificial intelligence workloads, and the game-changing role that hyperscalers are playing, the real estate market for data centers is in a strong position.