Purchasing Real Estate for Data Center Development: Due Diligence, Contractual Provisions
Buying Land vs. Existing Buildings, Infrastructure Concerns, Environmental Issues

Course Details
- smart_display Format
Live Online with Live Q&A
- signal_cellular_alt Difficulty Level
Intermediate
- work Practice Area
Real Property - Transactions
- event Date
Wednesday, September 10, 2025
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
-
Live Online
On Demand
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.
Faculty

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.

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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Ms. Peters has extensive knowledge and experience with renewable energy projects having aided her clients in successfully developing, operating and expanding hundreds of cogeneration facilities, clean fueling facilities and small to medium sized clean energy power plants over the past 20 years. Her work includes securing the real property interests for the land on which the facilities operate, environmental compliance, compliance with renewable portfolio standards, land use and permitting issues, including environmental impact documentation, negotiating power purchase and interconnection agreements, construction contracts, and agreements for the purchase and sale of both renewable fuel sources and environmental attributes, such as renewable energy credits (RECs), carbon credits, Renewable Identification Numbers (RINs) and Low Carbon Fuel Standard (LCFS) credits. She has also been successful in closing several financing transactions for these projects. Ms. Peters is also a frequent speaker on power purchase agreements, ancillary agreements to support renewable energy projects, development of renewable energy projects (including solar, wind, digester gas, biomass, and landfill gas), evaluating environmental impacts under the California Environmental Quality Act (CEQA) in light of AB 32 and related greenhouse gas emissions regulations and green building.
Description
Soaring demand, including the rise of artificial intelligence, is driving the development of new data centers and significantly impacting the commercial real estate industry. Given the nature of the business and building requirements, data center developers purchasing real estate have unique due diligence considerations and contractual needs of which counsel should be aware.
For example, data centers have high power and water needs. Therefore, part of the property selection process includes assessing average and peak demands and negotiating with local utility providers to ensure adequate supply and infrastructure for the data center needs as well as verifying that local laws allow for sufficient consumption. Securing the necessary environmental permits and conducting the required environmental studies are also important, as well as reviewing title and survey documents to ensure all necessary rights and access are secured since data centers often require specific easements such as those for fiber-optic cables.
In addition to addressing the above needs in the purchase agreement, counsel should also include provisions to mitigate risks faced by data centers that make them particularly susceptible to the impact of outside events including natural disasters, governmental actions, and permitting issues, as well as heightened security concerns.
Listen as our expert panel discusses issues unique to real estate purchases related to data center development. The panel will address necessary due diligence considerations and unique contractual provisions to mitigate client risk.
Outline
I. Introduction
A. The increased demand for data centers
B. Purchasing land vs. an existing building
II. Due diligence considerations
A. Land requirements and zoning
B. Encumbrances, easements, and land use limitations
C. Utility needs
D. Environmental concerns
E. Financial and tax considerations
F. Others
III. Purchase and sale agreements
A. Access rights
B. Force majeure clauses
C. Assignment of obligations
D. Default provisions
E. Casualty and liability
F. Environmental requirements
G. Others
IV. 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?
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