Reed Smith launches “Data Centers: Bytes and Rights”

Global law firm Reed Smith has announced the release of “Data Centers: Bytes and Rights,” a series exploring the legal and commercial dynamics transforming the global data center industry.

As demand for AI computing, cloud services and high-speed connectivity accelerates, data centers have become the backbone of the digital economy. But behind the surge lies a complex web of legal, regulatory and geopolitical challenges. Drawing on its global reach and cross-practice strength, Reed Smith offers practical guidance on the risks and opportunities facing developers, investors and operators in this rapidly evolving space.

The firm’s multidisciplinary team – spanning disputes, real estate, finance, energy, tech, tax and corporate law – advises clients across the full data center life cycle. With offices across the United States, Europe, the Middle East and Asia, Reed Smith brings a deep understanding of jurisdiction-specific issues, including foreign investment rules, developing regulations, and the complex commercial, environmental and technological considerations.

The series, available now on ReedSmith.com, brings together a collection of timely and relevant articles across several themes:

Chapter 1: Investment, development and infrastructure explores the foundations of data center growth, from acquiring and developing facilities in France to leveraging the Johor–Singapore Special Economic Zone as a new digital hub. It also addresses key fund structuring considerations, the shift to asset-light business models to enhance returns and critical factors in hyperscale site selection that can make or break long-term success.

Chapter 2: Managing risk and resilience examines whether insurance programs meet the sector’s needs, how liability is managed in construction contracts and whether cyber policies adequately cover ransomware events. It also discusses safeguarding innovation through IP protection and managing antitrust risks in data sharing.

Chapter 3: Resolving disputes and challenges looks at effective strategies for resolving disputes, the growing role of alternative dispute resolution and the concept of trusted data corridors for cross-border operations. It also covers environmental compliance and legal complexities in infrastructure M&A.

Chapter 4: Navigating rules and regulations unpacks the growing regulatory pressures facing data center stakeholders. It examines the impact of the UK’s National Security and Investment Act on transactions, the complexities of customs and trade compliance, and increasing antitrust scrutiny – particularly in HR practices and trade associations. It also highlights China’s pilot scheme to ease data center market entry in free trade zones, signaling regulatory shifts with global implications.

“Data centers are critical infrastructure, but their legal ecosystem is still emerging and rapidly evolving,” said Nicolas Walker, a partner in Reed Smith’s Energy and Natural Resources Industry Group. “With this series, we’re aiming to help clients and stakeholders decode the full life cycle – from planning and development to compliance, risk management and dispute resolution.”

“Data Centers: Bytes and Rights” brings together perspectives from Reed Smith’s global network of lawyers who are actively involved in the evolving data center landscape, helping clients of all sizes navigate and succeed in this highly unique sector.