Data Centers & Digital Infrastructure
As the demand for data centers continues to grow and reshape the power grid, Balch attorneys are at the forefront of issues surrounding how power is bought and sold, generated, delivered, and regulated.
For decades, Balch has represented utilities, independent generators, cooperatives, and large industrial clients across both regulated and deregulated energy markets. That depth of energy market experience now serves data center developers, hyperscalers, and digital infrastructure investors in addition to power providers.
Balch counsels clients on the challenges and opportunities that arise during all phases of the development and operation of data centers and about the infrastructure needed to support them. This includes support for developing new generation sources, negotiating power supply agreements and other transactions that span the full arc of infrastructure development, navigating utility interconnections, and managing regulatory proceedings before federal, state, and local energy and environmental regulators.
Balch delivers integrated counsel to data center developers, owners, investors, and operators, as well as wholesale and retail power suppliers through attorneys who have energy experience that informs the specific needs of data centers, aligning corporate, regulatory, real estate, environmental, tax, finance, and litigation capabilities.
Our Legal Capabilities throughout the Data Center Lifecycle
Transactions and Corporate Counsel
Balch's attorneys represent data center developers and owners, digital infrastructure investors, and energy companies in the full range of project-level agreements: power supply agreements, EPC contracts, major equipment supply agreements, transmission and distribution infrastructure agreements, gas pipeline agreements, real estate agreements, and interconnection arrangements. Balch has extensive experience in both behind-the-meter and in-front-of-the meter power supply structures in a variety of jurisdictions across the country. Our industry experience provides continuity across corporate structure and project agreements from formation through commercial operation. Our M&A and corporate attorneys also regularly counsel clients in acquisitions, equity transactions, joint ventures, and general corporate matters tied to data center development and operation.
Project Finance and Tax
Balch advises data center developers, energy companies, borrowers, and lenders on project finance structures supporting energy infrastructure and data center development. That work includes tax equity arrangements utilizing investment tax credits (ITC) and transferable tax credits available under the Inflation Reduction Act, as well as Department of Energy loan guarantee programs. For developers structuring clean energy procurement alongside construction financing, Balch advises on the tax, regulatory, and transactional requirements of these arrangements.
Power Regulation
Balch's energy regulatory attorneys handle FERC authorization for digital infrastructure company acquisitions of wholesale generation assets. They also have extensive experience counseling clients through large-load interconnection proceedings across MISO, SPP, and ERCOT markets, as well as state utility commission proceedings involving supply and delivery constraints tied to energy-intensive facility siting. Balch’s attorneys also help data center developers set up private-use-networks within the ERCOT region. Additionally, Balch advises on federal and state legislative strategy, RTO market rule developments, and compliance obligations arising under FERC jurisdiction and providing clients with regulatory counsel that connects market strategy to transaction execution.
Real Estate and Infrastructure Site Selection
Balch represents data center developers and turnkey campus developers in real estate acquisition, large-load electric service negotiations with incumbent utilities, and transmission and distribution infrastructure agreements. Where supply and delivery constraints present obstacles to siting energy-intensive facilities, Balch's attorneys engage directly with utilities and regulators to resolve those constraints and align real estate strategy with power connectivity and regulatory approvals.
Environmental Permitting & Compliance
Balch advises data center developers and energy clients on air permitting, water use and discharge compliance, stormwater management, and environmental review associated with generation project siting and large campus development. Balch's environmental attorneys work alongside the energy and transactional teams, ensuring that environmental compliance timelines are coordinated with power procurement, construction schedules, and regulatory approvals.
Litigation
When data center development, energy contracting, or infrastructure disputes require litigation, Balch's attorneys are prepared to navigate those disputes. Balch represents clients in disputes arising from power purchase agreements, construction and EPC contracts, utility service obligations, regulatory contested case proceedings, and real estate matters connected to data center and digital infrastructure development. Our litigation capabilities are backed by the same industry knowledge that informs Balch's transactional and regulatory work and the litigators who understand the energy sector.
