WEBVTT

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How can you avoid trapping
data center investments

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in inflexible structures
when it’s time for an exit?

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Data centers are often
developed on large campuses

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that include multiple data center buildings and power infrastructure.

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This campus structure can present
unforeseen challenges for owners

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looking to exit in an ever-evolving
data center landscape.

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Often in an exit, owners
might not sell the entire campus,

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but just one or two data center buildings within it,

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leading to structuring challenges
for all parties involved.

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Many buildings on a campus
are interconnected

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and share common infrastructure.

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But if a single building is sold,
how do the buyer and seller

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have the right to connect with other buildings and infrastructure

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necessary to continue seamless operations for their customers?

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Large power agreements may cover an entire data center campus

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also raising the question:

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How do you divide up these agreements when you sell an asset?

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Similarly, customers often sign master service agreements

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that cover multiple buildings
in a campus

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or maybe an entire data center operator’s global platform.

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When selling an individual building,
how do you split apart

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the master service agreement so that the individual building

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stands on its own?

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There are several proactive steps
you can take

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to prevent your data center investments from becoming

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trapped in inflexible structures
and ensure seamless transitions.

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Take time at the site planning stage

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to think through how
individual buildings

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could be separated from
the larger campus.

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Implement agreements
in provisions early

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that allow for connections
and spin-offs

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without the need for third-party
involvement at the time of a sale.

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At Latham,
we draw on decades of experience

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advising on every aspect of
data center projects,

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from infrastructure and real estate,

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to finance and technology.

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We can help you structure your
data center campuses

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for maximum flexibility,

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because we know what your buyers,

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investors, and lenders
are going to want to see.

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I’m Hilary Strong,

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and I co-lead Latham’s
interdisciplinary Data Center Team

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and have been advising
data center clients on complex

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real estate transactions
for well over a decade.