The Top Ten Data Center Legal Issues for Leases and MSAs

DULLES, VA -- The opening keynote of CAPRE’s recent 2020 Digital Infrastructure Outlook in Dulles set the table for a day full of world-class, cutting-edge content. “Top Ten Data Center Legal Issues for Leases and MSA's and Variations in the Cloud” by Jeff Moerdler, Partner at Mintz Levin was a deep dive into one of the most esoteric but important perspectives of our industry – the legal side of things. Fortunately, such a session provided CAPRE’s Outlook attendees with some first-hand intel on what people are dealing with, legally, on a daily basis across the industry. Below is a summary of Moerdler’s Top 10 Legal Issues. #10 – A Shift from Leases to MSAs “When I started in this space, pretty much every deal was run by a real estate or facilities department, but that’s shifted over the past 10-15 years,” shared Moerdler. “It’s now 50% of the time run by the data center infrastructure or telecom or IT group, 40% of the time run by the real estate or facilities group, and 10% of the time, they’re both involved. And during 90% of that 10%, they’re butting heads with each other, because both see themselves as in control.” According to Moerdler, this is making deals more complicated, because attorneys now have to wrap their heads around data center-centric paradigms, such as SLAs. #9 – Alterations Rights “Alterations is always an issue,” asserted Moerdler. “It’s become more of an issue…