Data Centers

This growth is creating an urgent need for innovation in energy generation and transmission assets and driving massive capital investment globally. According to industry sources, global data center power consumption is projected to increase from approximately 400 terawatt-hours in 2023 to more than 1,000 terawatt-hours by 2030 – an increase that is roughly the equivalent of the electricity generated in Canada in 2023 – while data center infrastructure investment in the U.S. alone is forecasted to be greater than one trillion dollars over the next 5 years.

Orrick brings an unrivaled perspective to help our clients respond to these market challenges and opportunities.

• Solving for the power and interconnection challenges is one of our strengths.
• Another is our long history of developing novel financing techniques.
• And a third is our deep connection to the tech and emerging AI sectors.

Few firms offer this combination.

Acting for developers, operators, hyperscalers, AI startups, entrepreneurs, investors, lenders and utilities, we deliver innovative support at every stage:

• Unsurpassed knowledge of the energy play and the players. Our team is ranked No. 1 in carbon-free power purchase agreements (PPAs) and No. 2 for energy transition and is a pioneer in energy storage. We represent buyers and sellers in every segment of the power market, bringing experience with traditional energy assets (oil & gas, nuclear, transmission and interconnection) that are evolving to meet the low-carbon future and applying that knowledge to rapidly emerging technologies.
• A Fortune 10 Tech company, a world leader in public cloud services and AI, partners with our team in achieving its net zero targets – the most ambitious in the market. We’ve helped this client negotiate groundbreaking renewable PPAs to support data centers in 14 countries, including:
• The largest single corporate renewable energy framework agreement, providing for the purchase of more than 10.5 gigawatts of renewable energy
• The first cross-border, 24/7 carbon-free PPA for a data center
• A landmark agreement that paves the way for the restart of the Three Mile Island Unit 1 nuclear reactor to power a data center
• The world’s first fusion energy purchase agreement
• Senior electric generation executives consult our team on strategies to meet the demand of data centers and hyperscale companies for reliable 24/7 power delivery. This entails financing, constructing and operating billions of dollars of physical generating and transmission assets.
• Our analyses span all major U.S. energy markets, including regions with no organized energy market. We counsel on novel payment and risk allocation structures, including innovative change-in-law arrangements.
• Our leadership advising venture-backed companies and investors in the energy tech sector means we are at the center of cutting-edge solutions. This includes, for example, clients achieving breakthroughs with micronuclear reactors and microgrid optimization and resilience techniques.

• Sophisticated advice on developments, financings and investments. Our top-ranked project development, real estate and finance teams act for data center developers, operators and investors around the world. We counsel clients on accessing capital in the public and private markets, including project financings, private credit, structured equity, securitizations, M&A, joint ventures, and creative PPP techniques arising from our work on some of the most innovative projects globally.
• Examples of our work include:
• Advising private credit lenders and other investment funds on debt and structured equity investments in data center companies
• Helping a leading data center operator finance the development of its hyperscale platform across Europe, Asia and the Americas
• Structuring one of the first data center CMBS transactions
• Negotiating complex hedging arrangements to de-risk renewable energy procurement for a data center company
• We advise some of the most well-known players in the industry (including data center operators, REITs and private equity) in their development, build out, investment and financing of hyperscale data centers in North, South and Southeast Asia.

• Effective decarbonization solutions. We help craft pioneering sustainability and carbon reduction or removal strategies for data centers and large-scale hyperscale operators. We also offer a unique responsible business reporting solution.

• Solutions for AI and data security. Our data center team includes lawyers working at the forefront of AI and data security. Over the past 15 months, we’ve advised on more than $30 billion in AI-related financings, 50 M&A transactions and countless licensing and technology transactions – enabling us to develop cutting-edge expertise with all facets of AI businesses. And we’ve helped hundreds of clients develop and implement durable AI-related policies at this moment of regulatory uncertainty.

• Public policy. Our one-of-a-kind public policy group helps clients navigate the legislative process and the executive branch in all 50 states. We live and breathe the states – we know firsthand the states that will be most hospitable to data centers as well as those that will present the most challenges. And when necessary, our team can help change the law to lower costs and/or create a more favorable environment. We have helped clients clear the path for high-profile projects and passed legislation that has paved the way for infrastructure development at the state and federal level.