Purchasing Real Estate for Data Center Development: Due Diligence, Contractual Provisions
Buying Land vs. Existing Buildings, Infrastructure Concerns, Environmental Issues
A live 90-minute premium CLE video webinar with interactive Q&A
This CLE webinar will examine the increased demand for data centers and the impact on the commercial real estate industry, specifically sales transactions. The panel will address unique due diligence issues for developers and contractual provisions that should be included in the purchase agreement to mitigate the types of risks associated with purchasing land or already existing buildings for data center development.
Outline
- Introduction
- The increased demand for data centers
- Purchasing land vs. an existing building
- Due diligence considerations
- Land requirements and zoning
- Encumbrances, easements, and land use limitations
- Utility needs
- Environmental concerns
- Financial and tax considerations
- Others
- Purchase and sale agreements
- Access rights
- Force majeure clauses
- Assignment of obligations
- Default provisions
- Casualty and liability
- Environmental requirements
- Others
- Practitioner takeaways and best practices
Benefits
The panel will review these and other important issues:
- Why is there an increase in data center development, and how is this impacting the commercial real estate industry?
- What due diligence considerations face counsel and clients when purchasing real estate for data center development? How do these differ when purchasing land vs. property with an existing building to be converted into a data center?
- What unique risks are related to data centers? What provisions should be included in the purchase agreement to mitigate those risks?
Faculty
Jeff Golimowski
Partner
Womble Bond Dickinson
Mr. Golimowski is a trusted advisor to businesses, especially during their most challenging moments. He has a wealth of... | Read More
Mr. Golimowski is a trusted advisor to businesses, especially during their most challenging moments. He has a wealth of experience in all aspects of complex disputes, particularly those involving the unique issues affecting post-merger and post-acquisition matters. Mr. Golimowski’s business litigation practice focuses on these disputes, as well as construction matters involving highly regulated projects. In construction, Mr. Golimowski represents companies from the moment a construction project appears to be headed for a dispute, to successful resolution after the last punch list item is complete. His construction industry clients include Fortune 500 corporations and small-to-midsize entities for whom a failed project could mean a failed company. When handling a post-acquisition dispute, Mr. Golimowski’s assistance begins during a deal, where he counsels clients on protecting themselves and their assets. Post-closing, he helps clients preserve and exercise the rights they bargained for, running the gamut from holdbacks to indemnities to insurance proceeds.
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Tara K. Gorman
Partner
Womble Bond Dickinson
Ms. Gorman focuses her practice on hospitality law, advising clients domestically and internationally on a broad... | Read More
Ms. Gorman focuses her practice on hospitality law, advising clients domestically and internationally on a broad spectrum of matters, including hotel acquisitions, licensing, branding, financings, operation, and development. She has extensive experience in management, licensing, and branding agreements for hotels, restaurants, water parks, and casinos. Ms. Gorman has represented a range of institutional investors in connection with their real estate investments, as well as governmental and quasi-governmental agencies with respect to their real estate holdings. In addition to her practice, Ms. Gorman is the Chair of the Timesharing and Interval Use Committee of the Hospitality Group of the Real Property and Probate Section of the ABA; Professor in Residence (Adjunct) at the Washington College of Law of American University in Washington, D.C., as part of the Hospitality and Tourism Law Program; and on the Board of Advisors of the Georgetown University Law Center’s Hotel & Lodging Legal Summit. She regularly speaks at conferences and seminars on real estate and hospitality topics and is the author of The Law Goddess Blueprint and a contributing writer to the textbook Hotel Law – Transactions, Management and Franchising.
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Kristen Thall Peters
Partner
Womble Bond Dickinson
Ms. Peters leads the Walnut Creek office and practices real estate, land use, environmental, and energy law. She... | Read More
Ms. Peters leads the Walnut Creek office and practices real estate, land use, environmental, and energy law. She advises and counsels commercial developers and property owners in connection with real estate acquisition and sales; development projects, green building, easements, and rights of way; and regulatory and land use approvals, including compliance with CEQA, NEPA, and the Endangered Species Act. She has acted as real estate counsel to potential purchasers and sellers of property valued from $100,000 to over $1 billion, including coordination and review of title, environmental due diligence, and disclosures. Ms. Peters regularly counsels landlords and tenants and negotiates and documents commercial and industrial property leases and indemnities. She also represents contractors, real estate brokers, and owners’ associations in various energy, real estate, and environmental matters. Ms. Peters also regularly counsels in a wide range of commercial and contractual matters. She has extensive experience negotiating power purchase agreements, transmission access, and funding agreements, and the financing of private electric power projects, including drafting contracts for power purchase, purchase and sale of environmental attributes, renewable energy credits (RECs) and carbon credits, distributorship, licenses, non-disclosure, collaboration, development, joint venture, and other arrangements. She has handled many purchases and sales of businesses, with an emphasis on companies with significant real estate portfolios and potential environmental liabilities. In addition to developing corporate environmental compliance, green certification, and sustainability programs, Ms. Peters advises clients on laws and regulations pertaining to air and water quality, hazardous substances, and California’s Renewable Portfolio Standard (RPS) statutes. She has worked with regulators on local, state, and federal levels and advises on environmental clean-up responsibility, underground and above-ground storage tank removal and remediation, flow control, e-waste, and recycling issues. Her practice involves all aspects of the alternative energy business.
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