Summary
Whether from the perspective of a developer, user or tenant, debt or equity financing provider, the government, or the broader community, the development of a data center project requires a host of considerations to assess its viability and position the project to become an operational and financial success that complements and enhances the surrounding community.
The Upshot
The attorneys of Ballard Spahr’s Data Centers team examine and explain these seven important areas of consideration for data center development projects:
- Zoning and Land Use Entitlements
- Government Affairs Strategy
- Infrastructure
- Energy Regulatory Approvals and Long-Term Capacity
- Staged Development and Scalability
- Financing Structure and Capital Stack
- User/Tenant Commitments and Creditworthiness
The Bottom Line
A careful analysis of each of these considerations is critical when first evaluating a data center project and throughout its development lifecycle, particularly to manage key timing, regulatory, financing, infrastructure, and counter-party risks. Ballard Spahr’s Data Centers team brings together the range of legal and business experience across land use, complex real estate, construction and development, finance, energy, and government affairs and public policy necessary to guide stakeholders through every stage of a data center’s lifecycle.
by Bruce F. Johnson, Alicia B. Clark, Dominic J. De Simone, John P. Smolen, Matthew N. McClure, and Stacey C. Tyler
August 25, 2025
Ballard Spahr LLP