Data Centers & Digital Infrastructure

As demand for AI and cloud computing accelerates, so does the need for the data center infrastructure that powers it. Access to reliable energy is central to a data center’s location, development schedule, and long-term viability. A.Y. Strauss’s multidisciplinary Data Center team advises developers, operators, investors, and AI cloud providers on the issues that most often determine whether a project gets built: power and energy, environmental permitting, and land use.

We cover the full data center lifecycle: from site selection, due diligence, and permitting through construction, financing, day-to-day operations, and exit. Our team draws on deep experience across energy and environmental law, land use, real estate, construction, and corporate practice to deliver coordinated, practical counsel at every stage.

Our Service Areas

Power & Energy

Power availability is often the single biggest factor in a data center’s viability. We advise on utility service and interconnection agreements, power purchase agreements (PPAs), on-site and backup generation, and the substations and related infrastructure needed to bring large loads online.

Environmental Permitting & Compliance 

We help clients obtain the environmental permits needed to build and operate a data center and provide ongoing environmental, health, and safety (EHS) compliance counseling once the facility is running. Our work includes:

• • Air permits for backup generators and on-site power generation
  • Water supply, wastewater, and stormwater approvals
  • Wetlands, flood hazard, and other site-specific permits
  • Hazardous materials management, including fuel oil for backup generators and chemicals used in cooling systems
  • Underground and aboveground storage tank (UST/AST) registrations and compliance, and Spill Prevention, Control, and Countermeasure (SPCC) plans
  • Hazardous waste management and applicable Resource Conservation and Recovery Act (RCRA) permitting and compliance
  • Ongoing permit compliance, reporting, and day-to-day regulatory obligations
  • Agency inspections, enforcement matters, and penalty negotiations

Land Use & Zoning

We secure the local approvals data center projects need, including zoning, site plan, and variance approvals and redevelopment designations. We represent clients before planning and zoning boards and governing bodies, and defend approvals when they are challenged.

Structuring & Development

We guide projects from concept to shovel-ready, including site selection informed by power availability, fiber connectivity, and water access; comprehensive due diligence covering title, survey, environmental, and zoning matters; land acquisition; project structuring; and negotiation of design and construction agreements.

Community Relations & Public Affairs

Data centers increasingly draw public and political attention. We help clients engage with residents, local officials, and other stakeholders; prepare for public hearings; address community concerns about noise, water, and energy use; and respond to legislative and regulatory developments affecting the sector.

Leasing & Operations

We negotiate data center leases, colocation arrangements, and hyperscaler agreements, and support clients throughout the holding period with operational agreements, governance, and asset management.

Financing, M&A & Exit

We advise on debt and equity financing, construction and acquisition financing, joint ventures, and M&A, working alongside institutional investors, REITs, infrastructure funds, and lenders. At exit, we structure dispositions, platform consolidations, and refinancings designed to maximize value.

Why A.Y. Strauss

A.Y. Strauss brings together attorneys from multiple practice areas to deliver sophisticated, business-minded counsel with the personal attention of a firm built on relationships. For middle-market businesses, investors, and AI cloud providers navigating the fast-growing data center sector, that combination — deep technical expertise paired with responsive, relationship-driven service — is what sets our team apart.

Attorneys

• Alex H. Rosenthal, Partner and Chair — Alex leads the firm’s Data Centers & Digital Infrastructure group, advising AI cloud providers, institutional investors, and equity sponsors across the full deal cycle, including acquisitions and dispositions, leasing, and colocation agreements. He directs transaction strategy and structuring and oversees multidisciplinary diligence spanning power and energy, real estate, environmental, land use and zoning, and regulatory matters.
• Allison Gabala, Partner — Allison leads the firm’s environmental and power work on data center projects, negotiating power purchase agreements and utility arrangements, handling environmental due diligence, and securing the permits needed to build and operate, before both regulators and communities.
• Glenn M. Azzinari, Partner — Glenn handles data center development and construction, negotiating EPC, design-build, and GMP contracts and resolving delay, change order, and payment disputes in court and arbitration for construction, engineering, and energy clients.
• Jeffrey S. Davis, Partner — Jeff handles corporate and commercial transactions, mergers and acquisitions, equity and debt financings, and joint ventures; drafting and negotiating business contracts and operative company agreements including operating and shareholder agreements.
• Lisa Lomelo, Partner — Lisa handles zoning, land use, and redevelopment approvals for data center sites and defends them when challenged, in prerogative writ actions and on appeal, for developers and property owners.
• Cheri R. Ciano, Counsel — Cheri handles data center development and finance, from site acquisition through permanent financing, drawing on her in-house experience at leading real estate companies to structure deals and manage risk.
• Anthony Crasto, Associate — Anthony supports litigation in data center transactions, through discovery, motion practice, mediation, and resolution.
• Jean Patrick “JP” Raynal, Associate — JP supports data center leasing, acquisitions, and financings nationwide for investors, landlords, tenants, developers, and sponsors.
• Alexa Sjolund, Associate — Alexa supports litigation in data center transactions across all stages, also handling due diligence and power purchase agreements and flagging regulatory and entitlement risk.

Contact us to learn how our Data Centers & Digital Infrastructure team can support your next project.