Joint Venture to Create 500,000 Sq. Ft. of Data Center Space

Technology has become critical to daily life, with reliance on digital connectivity and content amplified by the pandemic. Demand for data centers has been consistent, particularly in fast growing economies across the US that are underserved by digital infrastructure. Robust population growth and an explosion in data center sites has also raised power challenges and sustainability concerns.

Seyfarth’s client, leading data center provider Evoque, entered into a joint venture with Archer Datacenters to bring to market over 100MW of power capacity and over 500,000 square feet of data center space to meet the growing data center needs of the United States’ Central Southeast region. Evoque has earmarked $200mm to accelerate the expansion of the site, which includes a commitment to building a 100% renewable energy solution. In addition to an existing facility, the site provides space for multiple additional buildings to support both single tenant and multitenant colocation facilities.

The transaction required a strong Corporate and Real Estate team, as well as experienced Data Center lawyers to undertake significant bespoke due diligence issues and advising on additional power and fiber capacity. Our Public Finance team also assisted by quickly comprehending, advising, and drafting tax incentive documentation to maximize value and certainty for the client. Additional tax considerations also played a key role in envisaging the structure of the transaction.

By deploying our cross-disciplinary team of attorneys, we were able to help Evoque solve important and nuanced issues and support their business goals to develop a regional data center hub.