Industries
Data Centers and AI Infrastructure

Data Centers and AI Infrastructure

The rapid expansion of artificial intelligence, cloud computing, and data-driven technologies has fundamentally reshaped the digital infrastructure landscape. Organizations across industries now require massive computing capacity, reliable connectivity, and resilient data-processing environments to power everything from generative AI models and machine learning workloads to streaming services and wearable technologies. As these demands intensify, so too does the need for sophisticated legal counsel that understands the unique technical, regulatory, and commercial dimensions of the AI infrastructure industry.

At Shipman, our Data Centers and AI Infrastructure team provides comprehensive legal services to the full spectrum of participants in this rapidly evolving sector - from hyperscale operators and AI companies to colocation providers, investors, developers, and the technology vendors that support them. We advise on the acquisition, financing, development, and operation of AI infrastructure facilities of all types and scales, helping our clients navigate complex real estate and corporate (e.g., “AI factory”) transactions, power procurement and grid interconnection issues, export-compliant GPU procurement/distribution, land use and environmental permitting, construction agreements, and the tax and economic-development incentives that are increasingly critical to project viability.

Our team also brings deep experience in the emerging edge data center (EDC) space, a notable and growing niche within the broader data center ecosystem. As distributed computing architectures become essential for real-time AI inference and autonomous systems, we help clients identify real estate assets suited for adaptive reuse as EDCs, structure innovative deployment strategies, and capitalize on incentives designed to expand green energy usage and revitalize communities.

Whether our clients are siting a hyperscale AI training campus, negotiating colocation and interconnection agreements, vetting foreign partners, securing power and water resources for high-density facilities, or pioneering edge deployments, we deliver the cross-disciplinary legal resources and strategic counsel needed to move AI infrastructure projects from concept to revenue.

We advise clients in the following areas, among others:

Real estate, including adaptive reuse, site selection and zoning, acquisitions, sales and leases, and construction issues
Environmental, including fuel storage and related permitting, environmental insurance, guaranteed fixed price remediation (GFPR) contracts and incident responses
Energy, including clean energy and renewable fuels, LEED and other high-performance building standards and sustainability codes, and power-plant decommissionings
Corporate law, including vendor contracts, joint ventures, and private equity and venture capital investments
Data privacy and protection, including risk management and data governance, breach preparedness, response and notifications, and compliance with state, federal and international laws and regulations
Tax, including opportunity zone, brownfield rehabilitation, and other economic development credits and programs such as those administered by the Connecticut Department of Economic and Community Development (DECD) and Connecticut Innovations Inc. (CII)
International Trade, including domestic and foreign data center diligence on export, import and sanctions compliance risks for M&A/JV transactions and long/short term compute rental customers, as well as advice on procurement/shipping of AI GPU servers and related equipment for data center end uses.

We represent leading companies in the healthcare, banking and financial services, distribution and fulfillment, manufacturing, retail, telecommunications, technology and other data-intensive industries. Our lawyers and firm have the individual and institutional experience to help clients maximize the potential of EDCs and revolutionize the way organizations across the northeastern United States process and analyze data. Likewise, our affiliation with Interlaw further expands our ability to serve clients with interests, investments and operations worldwide.

Experience

Business & finance

Represented U.S. data center company in equity and debt financings to support infrastructure expansion

Represented U.S. data center holding company, as issuer and borrower, in $33M preferred stock and $200M debt financings, in furtherance of the build-out and improvement of several U.S. data centers, and related closing of master colocation agreement with strategic operator.

Growth Capital Financing

Represented a leading provider of cloud, connectivity and data center services for enterprise, carrier and content customers, in the refinancing of its existing debt and its securing of additional debt financing commitments from a group of lenders, in furtherance of the client’s growth initiatives.

Commercial contracts

Representation of National Hybrid Data Center/Cloud Computing Company

Responsible for drafting forms of master services agreements and service orders in support of national hybrid data center/cloud computing solutions company’s broad product/services suite, including integrating customer agreements and product/service descriptions of acquired businesses into the company’s portfolio.

International trade and enforcement

Government Enforcement Defense Counsel - GPU Hardware Detention & Federal Investigation

Represented a U.S. AI infrastructure company after federal authorities detained a shipment of high-performance NVIDIA GPUs valued at over $1.5 million based on concerns about potential diversion to prohibited end users in Asia. Served as lead outside counsel interfacing with the BIS Office of Export Enforcement, responding to multiple rounds of investigative inquiries, and filing a formal export license application and petition for release of the detained goods. Drafted formal correspondence to senior BIS officials requesting written confirmation that the client was not a target of the investigation and challenging the prolonged detention as inconsistent with the Bureau's published guiding principles. Managed multi-wave document productions and e-discovery in a voluntary response to the government’s Requests for Information. Simultaneously advised the client on managing its relationship with a major OEM whose own regulatory compliance issues had contributed to the detention, including counseling on responding to the OEM's attempts to shift responsibility. The matter remains ongoing with continued cooperation with investigators and document productions.

Export Compliance Program Development for Emerging AI Hardware Company

Designed and implemented a comprehensive U.S. export compliance program for a rapidly growing AI infrastructure company that had been operating without a formal framework with products and services subject to the Export Administration Regulations. Conducted an initial self-assessment of all historical export transactions involving controlled GPU hardware, ultimately concluding that no violations had occurred under the applicable regulations. Developed a detailed end-user screening checklist incorporating BIS Red Flag Guidance, Know Your Customer standards, and industry-specific transactional indicators for advanced computing integrated circuits. Drafted enhanced End-Use Statement forms, registered the company with BIS's SNAP-R electronic licensing system, and advised on the purchase and deployment of a six-figure global trade compliance screening platform. Provided calibrated export controls training for executives and operational staff, and established escalation protocols for red flag resolution.

Cross-Border M&A Due Diligence - Southeast Asian Data Center Acquisition

Advised an AI company on U.S. export control and sanctions due diligence for a proposed ~$40 million acquisition of a GPU-equipped data center operation in Southeast Asia. Prepared a regulatory compliance memorandum analyzing the transaction structure, the parties involved, and U.S. regulatory concerns under BIS export controls and the potential future implications of pending legislation such as the Remote Access Security Act. Identified critical risk factors during diligence, including criminal fraud charges against senior executives of the target entities in the host jurisdiction for allegedly diverting AI chips to China in circumvention of U.S. export controls, as well as an unresolved relationship between the nominated end-user and a sanctioned Chinese technology conglomerate. Advised on restructuring the deal mitigate successor liability for potential EAR violations.

Regulatory Advisory on Evolving U.S. AI Export Controls

Provided ongoing strategic counsel to a U.S. AI infrastructure company navigating the rapidly shifting landscape of export controls on advanced computing hardware, including GPUs subject to heightened controls under the Export Administration Regulations. Analyzed the legal implications of the January 2025 worldwide licensing regulation (“AI Diffusion Rule”), its subsequent rescission, and the regulatory uncertainty created by the absence of a formal replacement regulation. Prepared a detailed legal memorandum assessing the viability of a new licensing pathway for GPU exports to China under specific eligibility criteria and impacts of new tariffs on semiconductor imports. Monitored and advised on proposed legislation including the Chip Security Act, the Remote Access Security Act and the MATCH Act, assessing their potential impact on the client's global operations, deal pipeline and future impacts to long-term agreements.