Data centers

Data centers form the foundation of the digital infrastructure - in times of cloud computing, AI and big data, their importance continues to grow.

There is hardly a business model that does not function without data or is dependent on it. It therefore comes as no surprise that experts are forecasting overall market growth of up to 25% by the end of the decade due to the increasing demand for server capacities.[1] In Europe, growth is particularly evident in Germany, the UK and Spain.

In Germany, for example, data center capacities are expected to double by 2030 and increase to a total of 4,850 MW. In 2024 alone, investments of around 2.9 billion were recorded for the expansion of data center infrastructures (buildings and building technology).[2]

However, this development does not only bring advantages. As the relevance of data centers increases, so do the legal challenges that need to be taken into account when building and operating them: Data protection and IT security through to environmental regulations and sustainability requirements are just some of the few topics that are becoming relevant in this context.

In order to be optimally positioned for projects, minimize risks and identify and secure investment potential, we offer you sound legal advice. The areas of application, like our fields of activity, are diverse. Our data center team will advise you in all phases of your data center project, starting with the procurement procedure for the acquisition of land, through the construction and erection of the data center, to leasing. Our team can draw on many years of experience as well as contacts from the market.

[1] Data Center Group, Target growth, The future of data centers, 28.07.2021

[2] „Bitkom, Data centers in Germany, Current market development, Status 2024

Procurement procedure

We support our clients from the planning phase through to the successful conclusion of public procurement processes. We represent both public clients and contractors:

  • Drafting and reviewing tender documents, including contracts, in order to minimize legal and economic risks;
  • Supporting both sides of the procurement process from the announcement onwards, including assistance with requests to participate or bids for bidders, bidder dialogs, negotiations and bid evaluations;
  • Challenging or defending intended award decisions in the context of review procedures or subsequent appeal proceedings;
  • Support with the pronouncement or contestation of contract award blocks;
  • Contract management, including the adjustment or extension of contracts after the award of a contract.

Financing

The financing of data centers often involves complex structures that require precise legal expertise. Whether through traditional bank loans or other financial products, investors or public subsidies - contract design, collateral structure, compliance issues and tax aspects play a decisive role. In addition, there are regulatory requirements, sustainability specifications and environmental regulations that need to be taken into account in the financing structure. Our team provides expert advice to ensure that your data center project is financially viable, legally watertight and ready for the digital future.

Construction and planning

Building a data center is a complex undertaking that requires precise planning and legal expertise. Our team will ensure that your project meets all regulatory requirements, minimizes risks and is completed on time. Our team has particular experience in negotiating construction contracts in accordance with hyperscaler specifications and is familiar with the challenges that such a constellation poses for the client. Our team supports you in particular with

  • planning under building law
  • Finding suitable general contractors, architects and planning offices
  • Negotiating with contractual partners and authorities
  • Support in obtaining approvals
  • Drafting contractual documents (preliminary contract, construction contract, NDA, securities)
  • Support during the construction process (deadline management, assertion and enforcement of claims, examination of obstruction notices, etc.)

Data protection / Cybersecurity

Data protection and cybersecurity play a central role in the planning and operation of data centers. Where a lot of data is processed, special emphasis must be placed on the protection of (personal) data in accordance with regulatory requirements. The data protection requirements for data centers often go beyond what any modern company is already required to implement. For example, sufficiently secure technical and organizational measures must be in place to ensure adequate protection of the large amount of data. Furthermore, appropriate deletion concepts, lists of subcontractors, but also procedural directories must be kept. In addition, good data protection contracts, for example with the data center's customers, are essential.

In terms of cybersecurity, the regulatory changes introduced by the European NIS 2 Directive (second version of the Directive on Security of Network and Information Systems) are particularly important for data center operators. According to this, data centers in particular may be regarded as critical infrastructures, which justifies numerous security and reporting obligations.

In addition, the requirements of telecommunications law are particularly relevant for operators of data centers, which provide for a variety of requirements for telecommunications service providers.

Our team will advise you on all of the above topics, drawing on their in-depth expertise and solution-oriented strategies to protect the potential of data centers against (regulatory) risks.

Investor search / M&A

The increasing demand for digital infrastructure makes data centers attractive investment properties. However, legal hurdles lurk when looking for investors or as part of M&A transactions: From due diligence reviews and the drafting of investment and purchase agreements to compliance with regulatory requirements such as data protection or ESG criteria. Sound legal advice is crucial to minimize risks, create transparency and maximize the value of your project. Our team will support you in this and, in particular, in finding the right partner for your data center project.

Operation / Collocation / Leasing (Hyperscaler)

The operation or leasing of the data center is often the value-generating factor of a data center project. In order to get the maximum benefit for you, we support you in every form of operation, be it in-house operation, operation of a colocation data center or leasing to hyperscalers. Our team will advise you in particular

  • in the search for suitable contractual partners
  • Preparation of colocation offers
  • Negotiation of preliminary contracts and lease agreements (colocation, build-to-suit, hybrid lease)
  • Drafting of contractual documents (service level agreements, NDA, energy and sustainability requirements, etc.)

Energy supply and waste heat utilization

Data centers are energy-intensive – and caught between increasing demands for sustainability and a complex energy regulatory framework. From grid connection issues, power purchase agreements (including PPA), self-generation concepts in the customer system, and subsidies under the Renewable Energy Sources Act (EEG) to energy efficiency requirements, in particular the use of waste heat, CO₂ balancing or the ancillary marketing of emergency power generators: our team offers you sound legal advice on energy law to optimize costs, minimize regulatory risks and achieve sustainability goals.