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 generated, bought, sold, 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 continues to serve those same clients, and is being leveraged by eligible data center developers, hyperscalers, and digital infrastructure investors outside our existing power provider footprint.
Balch counsels clients on the challenges and opportunities that arise during all phases of the development and operation of data centers, including the infrastructure and services needed to support them. This includes the development of new generation resources, negotiating power supply agreements, and structuring transactions across the full spectrum of infrastructure needs and service establishment. As Balch’s regulatory experience spans federal, state, and local energy and environmental agencies, we routinely counsel our clients on ratemaking, rate design and permitting matters.
Balch delivers integrated counsel to data center developers, owners, investors, and operators, as well as wholesale and retail power suppliers through attorneys who have practical experience that informs the specific needs of data centers, aligning corporate, regulatory, real estate, energy, environmental, tax, finance, and litigation capabilities.
Our Legal Capabilities For Data Centers & Power Suppliers
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 (BTM) and front-of-meter (FTM) 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.
Balch's longstanding representation of utilities, specifically in cost-of-service ratemaking proceedings across multiple jurisdictions, gives the firm a working knowledge of how utilities price, design, and allocate costs for large-load customers. This knowledge translates directly to more effective counsel for data centers and hyperscalers engaging with utility counterparts. Our experience encompasses the development, negotiation, and implementation of:
- Federal and state large-load interconnection policies
- Deal structuring techniques for interconnection pricing
- Electric service agreements and interconnection arrangements
- Large-load rate design and cost responsibility determinations
- Reliability obligations including demand response and load management requirements
- EPC and certifications to support large-load additions
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, Infrastructure Site Selection, and Construction
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 have the experience to effectively engage with utilities and regulators to resolve those constraints and align real estate strategy with power connectivity and regulatory approvals.
Balch's construction attorneys work alongside our energy and real estate teams from the earliest stages of project planning. We advise owners, developers, general contractors, and equipment suppliers on project delivery method selection, EPC and design-build contract drafting and negotiation, procurement and competitive bidding, insurance and bonding, and contract administration through substantial completion.
Fuel Supply & Gas Infrastructure
Balch attorneys advise clients on the increasing demand for firm, dispatchable power supplied by gas-fired generation, including grid-scale, on-site, and behind-the-meter projects. We have experience with natural gas transportation agreements on interstate and intrastate pipelines, gas commodity agreements (including both NAESB and ISDA base contracts), gas pipeline construction and interconnection agreements, asset management arrangements, and RNG, LNG and CNG facility development and offtake. Our work also includes representing pipeline companies before the Railroad Commission of Texas and advising gas suppliers, developers, and generation owners on pipeline regulation, transportation, and interconnections. Balch also handles the permitting that accompanies new or expanded gas infrastructure, including coordinating pipeline siting, air and land-use permitting, and state pipeline safety requirements with project timelines that drive power procurement and construction.
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.
