Practice/Industry Group Overview
Sutherland attorneys provide seamless advice on all aspects of mission-critical data centers to developers, owners, operators, lenders and tenants.
Business intelligence and access to critical information are essential to the success of today’s organizations. Sutherland lawyers understand all aspects of mission-critical data facilities, from development, leasing and tax issues and power purchase agreements, to financing of the facilities. Since 1998, we have advised developers, owners, operators, lenders and tenants on matters associated with all types of data centers, including enterprise, wholesale, colocation and managed services facilities. Through our comprehensive team approach, we advise clients in build-to-suit and sale/leaseback transactions for single user facilities, in leasing cages, cabinets and private suites within multiuser buildings and financing of the construction and acquisition of facilities.
Sutherland’s uncommon level of experience allows us to anticipate and manage the many challenges inherent in developing, owning and financing complex data centers, including site selection, due diligence, tax incentives, operations, leasing and service level agreements. We understand the full range of tenant concerns as well, especially the complexities of lease agreements. Because data centers are energy-intensive, we place an emphasis on electricity requirements, including cogeneration options and the integration of onsite renewables, along with the associated regulatory, tax and environmental considerations.
Our interdisciplinary approach spans the entire data center development process. During the site selection phase, we help enterprise data center users negotiate substantial state and local tax incentives and analyze due diligence. For projects that include a renewable energy component, we help clients obtain tax credits and incentives, negotiate power purchase agreements and navigate applicable government regulations. We also assist with negotiating design and construction contracts, build-to-suit leases and joint venture agreements.
Dedicated data center team. Only a handful of law firms offer a dedicated data center practice, and Sutherland was one of the first to develop a full-service team to provide counsel on the many legal facets of these mission-critical facilities. Our knowledge of the data center industry and our long experience in the field set us apart.
Industry knowledge. Since we launched our practice, we have seen the role of data centers change rapidly. Organizations now create more and more information through the exploding use of social networking, smartphones and cloud computing. Increasingly complicated financial systems, regulatory requirements and compliance demands all require more data, and more sophisticated data use. From healthcare to banking, information needs are multiplying and redundancy is critical.
Experienced counsel. As existing data servers age, organizations need to develop secure and accessible back-up systems. As servers get smaller and hotter, older facilities must be phased out to accommodate the power and cooling needs of the latest technology. And as the demand for data centers outstrips supply, clients need experienced counsel to ensure they get it right the first time, whether they are building a new facility from the ground up or renting space.
Nuts and Bolts
Sutherland provides comprehensive services to the data center development, operations and leasing, including:
- Leasing agreements and service lease agreements
- Cogeneration and power development
- Data security
- Tax incentives
- Regulatory and compliance
- Statement on Standards for Attestation Engagements (SSAE) No. 16
- Health Insurance Portability and Accountability Act (HIPAA)
- Health Information Technology for Economic and Clinical Health (HITECH) Act
- Payment card industry (PCI)
- Gramm–Leach–Bliley Act
- Sarbanes-Oxley Act
Sutherland’s data center attorneys guide developers, owners and tenants through every aspect of developing, operating or managing mission-critical data center facilities. We can help develop and manage facilities and agreements that are strategic and advantageous.
Sutherland represents developer of enterprise and wholesale data centers.
Sutherland represented T5 Data Centers in the development, leasing and sale of enterprise and wholesale data centers in California, Colorado, Georgia, North Carolina, Oregon and Texas.
Sutherland represents healthcare system in data center leases.
We represented an Atlanta-based health system in negotiating two data center leases (approximately 650 kW) and related service level agreements.
Sutherland represents data center owners in negotiating leases and service level agreements.
Sutherland represented data center owners in negotiating data center leases and related service level agreements ranging from 600 kW to more than 10 MW.
Articles Authored by Lawyers at this office:
NIST Releases Revised Framework for Public Comment
, January 12, 2017
The National Institute of Standards and Technology (NIST) has released draft revisions to its voluntary “Framework for Improving Critical Infrastructure Cybersecurity.” This update revises the Framework to reflect input from NIST’s December 2015 Request for Information as well as...
Amendment to Criminal Procedure Rule 41 Impacts Data Privacy in U.S. and Abroad
Mark D. Herlach,Francis X. Nolan,Robert D. Owen,Phillip E. Stano,Mary Jane Wilson-Bilik, December 06, 2016
On December 1, 2016, amended Rule 41 of the Federal Rules of Criminal Procedure (FRCP) went into effect, thus expanding federal law enforcement’s power to search and seize electronic data. The new rule will allow law enforcement to seek a warrant from a “magistrate judge with authority...
ISAO Standards Group Releases Guidelines for Information Sharing
, October 07, 2016
Information and Sharing and Analysis Organizations, or ISAOs, can now look to four new publications for guidance in establishing ISAOs and in sharing cybersecurity information and interacting with the intelligence community, law enforcement agencies, U.S. regulatory agencies, and the Department of...
White House Cyber Commission Issues Requests for Information
, August 15, 2016
The White House’s Commission on Enhancing National Cybersecurity has announced in a Federal Register Notice that it is seeking information on a variety of cybersecurity topics. The Notice indicates that the Commission is seeking information on topics including critical infrastructure...
Federal Judge Dismisses Class Action Arising from Data Breach
, August 11, 2016
A D.C. federal judge has dismissed a putative class action against CareFirst BlueCross BlueShield that arose from a 2014 data breach. The judge determined that the alleged injuries suffered by the seven named plaintiffs failed to establish standing to sue, finding that “merely having...
Voice Over Internet Protocol and the TCPA: The Hidden Pothole on the Information Super Highway
Thomas M. Byrne,Juan C. Garcia,Patricia A. Gorham,Phillip E. Stano,Rocco E. Testani, July 27, 2016
Since the enactment of the Telephone Consumer Protection Act (TCPA) in 1991, technological advances in the way people communicate have often outpaced the ability of the courts and the Federal Communications Commission to reconcile those advances with the TCPA. The proliferation of cell phones and...
EU Leaders Approve EU-U.S. Privacy Shield
, July 14, 2016
The European Union’s (EU) Article 31 committee, which is made up EU member states, has voted to approve the EU-U.S. Privacy Shield. This Trans-Atlantic Privacy Shield data transfer procedure replaces the safe harbor data transfer arrangement that was struck down by the European Court of...
EU-U.S. Privacy Shield Adopted
, July 14, 2016
The European Commission has adopted the EU-U.S. Privacy Shield data transfer procedure, which replaces the safe harbor arrangement that was struck down by the European Court of Justice in October 2015. The Privacy Shield provides for additional protection of personal data, including dispute...
Electric Grid Cyberattacks
, July 01, 2016
Utility companies and grids are becoming increasingly vulnerable to cyber attacks. The Manhattan Institute recently released a report warning that although greater grid-Internet connectivity results in greener, smarter grids, these grids are also more likely to be the targets of hackers. The...
DHS Issues Final Information Sharing Guidelines
, June 20, 2016
The Department of Homeland Security has issued final guidance on the implementation of the Cybersecurity Information Sharing Act of 2015. The final guidance documents include: Guidance to Assist Non-Federal Entities to Share Cyber Threat Indicators and Defensive Measures with Federal Entities under...
NIST Releases Draft Guidance on Cybersecurity Event Recovery
, June 20, 2016
The National Institute of Standards and Technology (“NIST”) released draft guidance that outlines practices for responding to and recovering from cyberattacks. The goal of this publication, according to NIST, is to offer “tactical and strategic guidance regarding the planning,...
NAIC Task Force Hosts Insurance Data Security Model Law Meeting
, May 31, 2016
On May 24 and 25, the National Association of Insurance Commissioners (the “NAIC”) Cybersecurity (EX) Task Force (the “Task Force”) hosted a meeting in which state insurance commissioners and interested parties were invited to provide comments to and voice concerns about the...
Parts Manufacturer Delphi Joins Automaker Cybersecurity Group
, May 13, 2016
Delphi Automotive PLC, an automotive parts manufacturer, announced this week that it has joined the Automotive Information and Sharing Analysis Center, the automotive industry’s hub for addressing cyber-security threats to connected vehicles. The Center counts a majority of U.S. automakers,...
NIST Issues Streamline Guidance for Public Comment
, April 27, 2016
The National Institute of Standards and Technology (“NIST”) has issued a revised version of its guidance for sharing cyber-threat intelligence. The goal of this guidance is to help improve cybersecurity operations and risk management activities through information sharing practices....
Energy Bill Addressing Cyber Issues Passes Senate
, April 22, 2016
The Energy Modernization Act, a comprehensive energy bill that includes electric grid cyber protections, was passed by the Senate by an 85-12 vote. The bill includes language that gives the Department of Energy greater authority to intervene in cyber emergencies as well as language that protects...
Panama Papers Leak 11.5 Million Documents, Exposing Public Officials
, April 11, 2016
On Sunday, April 3, 11.5 million confidential documents exposing a widespread system of global tax evasion were made public as a result of a hack. The documents, which were records of the Panamanian corporate service provider and law firm Mossack Fonseca, were obtained by an anonymous source,...
Major Law Firms Hacked
, April 04, 2016
On March 29, 2016, it was reported that hackers infiltrated the systems of major U.S. law firms last summer, including Cravath, Swaine & Moore and Weil, Gotshal & Manges. Federal law enforcement is investigating the hacks, which likely sought confidential information of publicly-traded...
Iranians Hackers Targeted Control of New York Dam
, March 28, 2016
The seven Iranian hackers that were indicted for conducting distributed denial of service attacks on banks also were charged with illegally accessing the supervisory control and data acquisition, or “SCADA,” system at a dam in New York State. This is reportedly the first time a breach...