https://www.morganlewis.com/rss/blogsBlogs RSS Feed25https://www.morganlewis.com/blogs/datacenterbytes/2026/04/german-government-strengthens-digital-infrastructure-with-adoption-of-national-data-center-strategyGermany has taken a significant step toward strengthening its digital infrastructure with the adoption of a National Data Center Strategy aimed at expanding capacity, supporting artificial intelligence development, and addressing sustainability concerns.Fri, 24 Apr 2026 00:00:00 -0500c14bb832-bd9e-49ea-8814-9471e96b510bEuropeGermanyTechnologyData CentersBarbara Murphy MelbyDr. Florian HarderDr. Chloé Lignierhttps://www.morganlewis.com/blogs/datacenterbytes/2026/02/charting-a-path-to-us-export-controls-compliance-when-building-out-global-data-centersAmong the many considerations for building, operating, and monetizing data centers, a vital aspect is whether the data center owners and customers will be able to export to—and use within—a non-US data center competitive hardware and software, namely the advanced semiconductors used in training and running large-language models.Fri, 27 Feb 2026 00:00:00 -06002d6abc0c-dc97-4d37-a2f0-26f99a02d3f7International Trade & National SecurityUnited StatesArtificial IntelligenceData CentersTechnologyMichael H. Hunekehttps://www.morganlewis.com/blogs/datacenterbytes/2026/01/2026-us-data-centers-and-energy-key-trends-shaping-power-demandS&P Global Market Intelligence recently released its 2026 US Datacenter and Energy Report, which summarizes the forces that may shape data center and power generation development in the coming year.Thu, 29 Jan 2026 00:00:00 -0600d9be7495-0028-44ef-8453-24c6df40f2d3Energy & InfrastructureUnited StatesTechnologyData CentersEnergyENEBarbara Murphy MelbyChristopher William Pisano, Jr.https://www.morganlewis.com/blogs/datacenterbytes/2026/01/japanese-government-publication-has-important-implications-for-tmk-ownership-of-data-center-fit-outOur prior blog post discussed an issue faced by investors who use the tokutei mokuteki kaisha (TMK) as the vehicle to own a data center in Japan. The primary issue the post explored was whether a TMK is required to entrust movable assets (including the data center fit-out) with a Japanese trustee.Thu, 29 Jan 2026 00:00:00 -06005447e2f1-f0f7-41ab-95a0-3169760723cbAsiaJapanData CentersTechnologyJerry FujiiNaoki Ueyama https://www.morganlewis.com/blogs/datacenterbytes/2026/01/contracting-for-cloud-computing-capacity-key-concerns-for-customersCloud computing has been sold as elastic, on-demand access to virtually unlimited resources. However, the rapid growth of data-intensive and artificial intelligence–driven workloads has strained the availability of certain types of computing, particularly specialized processors and region-specific capacity. As a result, customers (and their lawyers) are questioning whether compute resources will be available when needed.Wed, 21 Jan 2026 00:00:00 -06003566f2ff-3c57-417f-96a4-56b238036f96Technology Transactions, Outsourcing & Commercial ContractsUnited StatesTechnologyData CentersOUTBarbara Murphy MelbyAdia Brantleyhttps://www.morganlewis.com/blogs/datacenterbytes/2026/01/investing-in-data-center-focused-hvac-businesses-an-increasingly-strategic-asset-classThe continued expansion of data centers—driven by cloud adoption, artificial intelligence (AI), and high-performance computing—is reshaping how investors evaluate infrastructure risk and opportunity. Among the most critical, and often underestimated, components of this ecosystem are heating, ventilation, and air conditioning (HVAC) and related thermal-management infrastructure.Thu, 15 Jan 2026 00:00:00 -06005c589008-2a9e-448b-98d7-30b820643052Corporate, Finance & Investment ManagementEnergy & InfrastructureReal EstateTechnology Transactions, Outsourcing & Commercial ContractsMergers & AcquisitionsPrivate EquityAfricaAsiaEuropeLatin AmericaMiddle EastUnited StatesData CentersTechnologyArtificial IntelligenceEnergyNuclear EnergyTelecoms & InfrastructureCBTENESECOUTMAPEJohn J. SheehanMark L. OpitzBarbara Murphy Melbyhttps://www.morganlewis.com/blogs/datacenterbytes/2026/01/why-commercial-facility-services-are-a-quiet-value-driver-in-the-data-center-boomExplosive growth in cloud computing, AI workloads, edge deployments, and enterprise digitization continues to drive unprecedented demand for capacity, leading the data center sector to become one of the most closely watched segments of the digital infrastructure market. While investor attention often gravitates toward hyperscalers, colocation platforms, and real estate assets, commercial facility services are emerging as a compelling—and frequently underappreciated—source of value for investors and operators in the data center sector.Thu, 08 Jan 2026 00:00:00 -06006ede7eb7-630c-49f3-9b65-9211cb9e0c64Corporate, Finance & Investment ManagementEnergy & InfrastructureReal EstateTechnology Transactions, Outsourcing & Commercial ContractsMergers & AcquisitionsPrivate EquityAfricaAsiaEuropeLatin AmericaMiddle EastUnited StatesData CentersTechnologyArtificial IntelligenceEnergyNuclear EnergyTelecoms & InfrastructureCBTENESECOUTMAPEJohn J. SheehanMark L. OpitzBarbara Murphy Melbyhttps://www.morganlewis.com/blogs/datacenterbytes/2026/01/california-takes-a-study-first-approach-to-data-center-regulationCalifornia lawmakers have recently focused renewed attention on the rapid growth of data centers, driven in large part by cloud computing and artificial intelligence capacity demands. Concerns about grid reliability, electricity costs, and environmental impacts prompted a flurry of legislative proposals in the 2024–2025 session. The result, however, is a more incremental regulatory approach than many industry participants initially expected. This post highlights what has passed, what stalled, and what data center developers and operators should be monitoring going forward.Wed, 07 Jan 2026 00:00:00 -06005c26c4eb-45ca-4452-bd7c-45ef0176d572Corporate, Finance & Investment ManagementEnergy & InfrastructureReal EstateTechnology Transactions, Outsourcing & Commercial ContractsTelecommunications, Media & TechnologyEnvironmental Counseling & LitigationUnited StatesData CentersTechnologyArtificial IntelligenceEnergyNuclear EnergyTelecoms & InfrastructureCBTENESECOUTTMTLITMarc A. LiverantBarbara Murphy Melbyhttps://www.morganlewis.com/blogs/datacenterbytes/2025/12/ferc-weighs-in-on-pjm-data-center-co-location-rulesThe Federal Energy Regulatory Commission (FERC) issued its long-awaited order on December 18, 2025 (the Order), directing PJM Interconnection, LLC to reform its Open Access Transmission Tariff (Tariff) rules for generators co-located with large loads, most notably data centers, after finding the current Tariff lacks sufficient clarity and consistency regarding applicable rates, terms, and conditions of service.Tue, 30 Dec 2025 00:00:00 -0600662f1eb2-ef76-4d6e-8432-1f143e45664dEnergy & InfrastructureUnited StatesData CentersTechnologyEnergyENEStephen M. SpinaArjun P. RamadevanahalliPamela T. WuPatrick R. Pennellahttps://www.morganlewis.com/blogs/datacenterbytes/2025/12/a-conversation-with-ayman-khaleq-on-data-center-investment-in-the-uae-and-saudi-arabiaAyman Khaleq, a partner at Morgan Lewis, is widely recognized as one of the leading advisors on cross-border investments, digital infrastructure transactions, and securities technology–industry regulatory frameworks in the Middle East. Ayman guides institutional investors (including sovereign wealth funds), private equity investors, and regional operators as they navigate complex legal and regulatory landscapes and structure large-scale data center and tech-sector investments. His perspective offers valuable insight into how the United Arab Emirates (UAE) and Saudi Arabia have become two of the most dynamic and competitive data center markets globally. His on-the-ground experience offers helpful insight into where the market is today—and where it is headed next.Tue, 16 Dec 2025 00:00:00 -0600b27e9bed-42cf-4b35-be0a-ac69ea3a19cbMiddle EastUnited Arab EmiratesSaudi ArabiaData CentersArtificial IntelligenceBarbara Murphy MelbyAyman A. Khaleqhttps://www.morganlewis.com/blogs/datacenterbytes/2025/11/adaptive-reuse-of-vacant-real-estate-for-data-centers-investor-takeaways-from-the-cboe-headquarters-flipProfessional investors eyeing data center opportunities may want to consider adaptive reuse of vacant real estate assets. A recent Chicago transaction demonstrates how power provisioning and strategic repositioning can unlock value in underutilized properties, particularly as demand for data center facilities expands.Mon, 17 Nov 2025 00:00:00 -060075df6652-32fc-4662-9f30-aa7bc649dcc4Real EstateCorporate, Finance & Investment ManagementData CentersSECCBTFerdinand J. Gallo IIIhttps://www.morganlewis.com/blogs/datacenterbytes/2025/11/planned-doe-rulemaking-would-apply-to-data-center-interconnectionThe proliferation of artificial intelligence (AI) data centers and other high-demand facilities is imposing significant new energy and infrastructure demands on the electric grid. This rapid pace of development is testing the limits of legacy regulatory rules, forcing policymakers and industry participants to consider a patchwork of solutions, ranging from new tariff designs to special contracts. There is also growing concern in some corners of the industry over rate hikes, resource adequacy, and reliability.Fri, 14 Nov 2025 00:00:00 -06004acb2746-2b38-421c-97ab-711d37bcbb1fEnergy & InfrastructureUnited StatesEnergyData CentersENEJane AccomandoArjun P. RamadevanahalliStephen M. SpinaRobert P. Goldfinhttps://www.morganlewis.com/blogs/datacenterbytes/2025/11/coming-up-morgan-lewis-data-center-bytes-navigating-the-capacity-race-webinar-seriesJoin 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.Tue, 11 Nov 2025 00:00:00 -0600d8056674-e6a1-44bb-8cb2-10a7dc5cbac0Telecommunications, Media & TechnologyTechnology Transactions, Outsourcing & Commercial ContractsReal EstateCybersecurity, Incident Response & PrivacyEnergy & InfrastructureMergers & AcquisitionsPrivate EquityInvestment ManagementFinanceAfricaAsiaLatin AmericaMiddle EastEuropeUnited StatesData CentersTechnologyEnergyBankingInvestment FundsRetail & EcommerceTMTOUTSECACCPLITENECBTMAPEIMPGEBESOPBarbara Murphy MelbyUlises R. PinMichael A. MüllerJane Accomandohttps://www.morganlewis.com/blogs/datacenterbytes/2025/11/data-center-lease-considerationsWhile 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.Tue, 11 Nov 2025 00:00:00 -0600993cf5e8-8f6d-458a-9732-e938781b8b86Real EstateTechnologyData CentersSECJeannine T. BishopKelly G. Kuschelhttps://www.morganlewis.com/blogs/datacenterbytes/2025/09/nuclear-powered-data-centers-get-a-boost-from-us-uk-tech-collaborationA 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.Tue, 23 Sep 2025 00:00:00 -05008ae83845-b40e-4a6e-b1d3-5bdfce83ba22Energy & InfrastructureData CentersArtificial IntelligenceTechnologyENEJane AccomandoErin McClellandhttps://www.morganlewis.com/blogs/datacenterbytes/2025/08/the-ai-data-center-boom-why-insurance-coverage-mattersThe 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.Wed, 27 Aug 2025 00:00:00 -0500891f4371-ed07-4166-a482-823d15e374b9Insurance RecoveryCybersecurity, Incident Response & PrivacyLitigation, Regulation & InvestigationsData CentersArtificial IntelligenceTechnologyLITACCPSergio F. OehningerGarrett S. Nemeroffhttps://www.morganlewis.com/blogs/datacenterbytes/2025/08/unlocking-opportunities-private-equity-and-data-centers-august-28-webinarThe 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.Tue, 26 Aug 2025 00:00:00 -0500cf5db932-b102-4ddf-ba0d-b5cdf12e7b47Private EquityUnited StatesData CentersTechnologyPEJane AccomandoKelly G. KuschelBarbara Murphy Melbyhttps://www.morganlewis.com/blogs/datacenterbytes/2025/08/white-house-issues-executive-order-to-fast-track-data-center-developmentIn 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.Wed, 13 Aug 2025 00:00:00 -05000ed74c64-9fdf-4030-987c-aa04597e434aReal EstateEnergy & InfrastructureTelecommunications, Media & TechnologyTechnologyEnergyData CentersSECENETMTJane AccomandoUlises R. PinBarbara Murphy Melbyhttps://www.morganlewis.com/blogs/datacenterbytes/2025/07/americas-ai-action-plan-encourages-reforms-for-rapid-data-center-buildoutThe 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.Fri, 25 Jul 2025 00:00:00 -0500c56c91a2-b819-4eda-8807-be080412cef0Energy & InfrastructureEnergyTechnologyArtificial IntelligenceData CentersENEJane AccomandoScott D. Clausenhttps://www.morganlewis.com/blogs/datacenterbytes/2025/06/france-sharpens-legal-framework-to-attract-data-center-developmentAt 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.Fri, 13 Jun 2025 00:00:00 -0500267cd5a4-0a40-42f3-980a-8c1487b2d131Real EstateEnergy & InfrastructureInvestment ManagementEuropeTechnologyData CentersArtificial IntelligenceSECENEIMPGhttps://www.morganlewis.com/blogs/datacenterbytes/2025/05/powering-data-centers-president-issues-four-executive-orders-to-expand-and-accelerate-the-development-of-us-nuclear-energyAs 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.Wed, 28 May 2025 00:00:00 -0500bba43549-0df5-4e3e-8e5c-e17dc5f2ecffCybersecurity, Incident Response & PrivacyInternational Trade & National SecurityEnergyNuclear EnergyData CentersACCPLITJane AccomandoTimothy P. MatthewsAlex PolonskyRyan K. Lightyhttps://www.morganlewis.com/blogs/datacenterbytes/2025/05/balancing-leasing-acquisition-and-environmental-risk-in-data-center-projectsBuoyed 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.Fri, 02 May 2025 00:00:00 -0500aed33864-b33c-41f4-917e-adb3055cd3b5Real EstateEnvironmental Counseling & LitigationTechnologyData CentersSECLITJeannine T. BishopKelly G. KuschelElla Foley Gannonhttps://www.morganlewis.com/blogs/datacenterbytes/2025/05/the-impact-of-us-tariffs-and-trade-policy-on-data-centersTariff and trade policy in the United States is poised to affect nearly every industry, and data centers are no exception. Data centers built in the United States need to be outfitted, and much of that equipment comes from outside the United States and would be affected by US import controls and regulations. Import controls may involve quotas or other restrictions on what may be imported into the country or the imposition of tariffs on imported merchandise. Tariffs that are currently imposed under various trade measures, and anticipated additional tariff and non-tariff remedies resulting from trade investigations, will influence data center construction, hardware manufacture, software development, and energy consumption.Thu, 01 May 2025 00:00:00 -0500870ce633-13a1-4208-b50b-caaa80724246International Trade & National SecurityUnited StatesTechnologyData CentersCasey WeaverKatelyn M. Hilfertyhttps://www.morganlewis.com/blogs/datacenterbytes/2025/04/legal-issues-facing-owners-and-operators-of-data-centers-in-japanAs experienced investors in Japanese real estate know, the Tokutei Mokuteki Kaisha (TMK) is the Japanese entity used by most investors to acquire and hold large real estate assets due to its favorable tax treatment. It is also well known that the TMK is a highly regulated entity, and the laws and regulations governing the TMK are rife with traps for the unwary. For investors in Japanese data centers who use the TMK as their investment vehicle, a couple of these traps arise because of the high value of the TMK’s movable assets (i.e., the data center fit out) in relation to its immovable assets (i.e., the land and the core and shell of the data center).Tue, 15 Apr 2025 00:00:00 -05003204a03c-20a5-44e5-b3d1-5dcf157cf472JapanData CentersJerry FujiiNaoki Ueyama https://www.morganlewis.com/blogs/datacenterbytes/2025/04/new-uk-cybersecurity-measures-for-data-centers-and-managed-service-providersThe UK government published on April 1 a policy statement setting out its proposals for the much-anticipated Cyber Security and Resilience Bill (the Bill). The proposals include bringing data centers and managed service providers within scope of the United Kingdom’s cybersecurity regulatory framework, strengthening supply chain obligations for designated operators of essential services, updating technical security standards, and new executive powers for the UK government to direct regulated entities in relation to a specific cyber incident or threat.Mon, 14 Apr 2025 00:00:00 -0500ae7fae0f-b006-48c9-86ff-8350b16c1c8bCybersecurity, Incident Response & PrivacyTechnology Transactions, Outsourcing & Commercial ContractsTelecommunications, Media & TechnologyEuropeFintech & Digital AssetsTechnologyData CentersACCPLITOUTTMT