WEBVTT

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Data center
projects are bigger

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and more complex than ever.

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How can companies prepare
for the disputes that follow?

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While data centers
have been around for decades,

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AI investment

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and soaring demand
for computing power

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have supercharged
the industry.

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With that growth comes

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amplified scrutiny

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from investors, the public,
and counterparties,

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ushering in a new wave
of litigation over

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land, energy,
contracts, and investments

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that are only growing
more complex.

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Understanding how data

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center litigation has evolved
is critical for companies

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looking to continue
to grow their business,

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protect their investments,
and mitigate risk in

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an ever-evolving space.

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Early data center litigation
followed

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a more traditional paradigm
for technology companies.

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Data center

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developers and operators
faced intellectual property,

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stockholder,
and other commercial disputes

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that did not significantly
distinguish data centers

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from other technology
companies.

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As the industry matured
and the allocation

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of limited resources

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became a hot topic, issues
like customer agreements,

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lease terms, and service-level
commitments

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became more heavily
negotiated.

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Now, with the surge in
AI driven demand,

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we’re seeing a new generation

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of disputes involving scarcity
of land, environmental

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concerns, and access
to power and energy.

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And as more data center
companies seek access

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to the public capital markets
and stock prices fluctuate,

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securities class actions,
derivative suits, and board

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level disputes are arising.

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Data centers are
highly technical operations

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that range
from retail colocation

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environments —
where a company can lease

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space for a single rack —

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to huge hyperscale facilities
for a single tenant.

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Disputes can span the full
lifecycle of a data center —

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from land acquisition
and permitting,

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through construction
and financing,

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to ongoing operations
and customer relationships.

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Understanding the specific
distinctions between data

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centers, how they operate,
and their business

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objectives is crucial
to a successful outcome —

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whether in the court
or in the negotiation room.

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The key to effective
litigation is engaging counsel

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who “speak data

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centers” and understand

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the business and legal
objectives of data

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center owners,
operators, and developers.

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At Latham, we’ve
worked at the forefront

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of global data

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center projects

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since the early days
of the industry —

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and our understanding

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of the business has evolved
alongside our clients.

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We help companies
navigate the full

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spectrum of data center
disputes,

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bringing the technical fluency
and litigation experience

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needed to protect their
most important investments.

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I’m Josh Hamilton,

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a litigation partner at Latham
and Watkins, and I advise

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clients in navigating mission
critical disputes in the data

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center space.