Kevin Gibbs

This Practice Note builds on the overview provided in Practice Note: Data centre projects—key aspects by examining the principal energy-related legal, regulatory and commercial issues arising in the development of data centre projects in GB. It considers the electrical capacity and connection requirements of different types of data centre, the process and challenges associated with securing an electricity network connection, and the evolving reforms affecting large electricity demand connections. It also considers behind-the-meter and other alternative electricity supply strategies, electricity licensing, electricity procurement strategies, heat networks and waste heat recovery, and the energy-specific factors relevant to site selection. These issues are also likely to be relevant to investors and lenders assessing the technical, commercial and regulatory risks associated with a proposed data centre development.In this Practice Note, it is assumed that the data centre project:•is a standalone data centre development (although this Practice Note considers co-located generation, private wire arrangements and other alternative electricity supply strategies, where relevant)•is principally supplied by low-carbon electricity (although this Practice Note

This Practice Note provides an overview of the key legal, regulatory, commercial and practical issues arising in the development, financing, construction, operation, and eventual expansion or the sale of a data centre. It is aimed at lawyers and other professional advisors who have limited or no prior experience of data centre projects, or who need to understand how the relevant workstreams fit together. It may also be useful for lawyers involved in acquisitions, disposals, investment, refinancing or due diligence of operational data centre assets or development sitesIn this Practice Note it is assumed that the data centre project:•relies on low-carbon electricity supply (and, therefore, excludes the supply of electricity generated from natural gas without carbon capture technology)•is a standalone project, as opposed to a ‘hybrid’ project being simultaneously developed alongside co-located electricity generation or energy storage assets ◦may be financed through a variety of funding structures, including sponsor balance sheet funding, institutional investment, corporate debt facilities or, where appropriate,