Data Centres
De-coding the issues
Nabarro’s specialisms include:
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Intellectual Property IT and Communications Pensions Planning Projects Real Estate Regulatory
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Industry sectors Nabarro focus upon include:
Energy Data Centres Defence Education
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Healthcare
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“ I have been a well satisfied client of
Nabarro for many years. The services
provided to me over that time range
from M&A, tax structuring, VAT advice,
corporate governance and set-up,
property acquisition and disposition
and more. I wholeheartedly endorse
Nabarro’s professionalism, level of
service and commitment and, not least,
congeniality.”
J. Byrne Murphy, Chairman, DigiPlex Group of Companies
Data Centres
De-coding the issues
Contents
Mission critical legal services
02
Our credentials
03
Nabarro’s expertise
04
7 reasons to switch on to Nabarro
06
Your Data Centres group
08
Minding your PDUs
In a data centre, the virtual world meets the built environment. Your advisers need to understand the unique requirements, jargon and commercial sensitivities in a sector where the value of the equipment far exceeds the value of the building.
Future-proofing
With such large and long-term investments at stake, future-proofing is essential. Legal and regulatory issues affect every aspect of the data centre market, from site selection to power procurement to service level agreements. Legislation is changing relentlessly in areas as diverse as sustainability, health and safety, and data protection. Just as you need technological solutions which are up-to-date, whilst giving your data centre the flexibility to evolve, so too you need contracts which are both modern and adaptable, and advice which is both expert and commercial.
Code-breaking
The data centre market is maturing as well as growing, and data centres are becoming a recognised asset class. But recognition is not the same as understanding. At Nabarro, we have been involved in many of the most significant data centre transactions in the UK. Clarity is what we deliver. That means de-coding the language, risks and opportunities in this fast-changing sector.
Mission critical legal services
Data centres are the engine-rooms of the digital economy. They provide the
infrastructure that supports every private and public sector undertaking in the
modern world. Yet data centres are costly, complex and vulnerable assets where
failure can lead to catastrophic consequences for your business. If you develop,
operate, finance, invest in or simply use a data centre, de-risking needs to be
considered at every step. We can help.
Our transactions include advising:
• an international financial services
company on the development and
leasing of a data hall within a newly
constructed data centre
• a data centre platform business on debt
financing and refinancing facilities
• a developer on the construction to shell
of a data centre for an American
computer company
• an insurance company taking a lease of a
data centre from one of the major
carrier-neutral co-location companies
• the developer of a technology park with
significant data centre space
• a specialist data centre developer and
service provider entering the UK market
for the first time
• a venture capital company on a joint
venture with a data centre specialist
developer
• a developer on the construction of a new
data centre and pre-let to a data centre
specialist provider
• a developer on the pre-letting of a new
build data centre to a co-location
provider
• a specialist data centre developer on its
construction contracts and professional
team appointments
• a prospective purchaser of an
undeveloped freehold site being
marketed for data centre use with
planning and power
Industry connections
We have well-established links with
the key agents that specialise in the
data centres market. Members of our
team regularly contribute articles to
industry publications.
Our credentials
Plugged into the sector
Our Data Centres group acts for a wide range of clients throughout all market sectors including technology, finance and commercial. We have established a track record acting for both landlords and occupiers on high value purchases and leasing arrangements.
We provide strategic, commercial and effective legal solutions. In difficult market conditions we understand the opportunities, pitfalls and hurdles and how they impact our clients.
Our cross-practice team provides our clients in the sector with a complete range of key services and expertise. Our knowledge base and continued commitment to the data centre sector enable us to add real commercial value to our clients’ businesses and we remain committed to transparent fee arrangements.
The market for data centre services is
changing. New virtualisation technologies
and higher bandwidth connections are
making it possible to meet end-users’
requirements for scalability, capacity and
efficiency in new ways and using new
contractual models.
Real Estate
Our industry leading real estate team advises on a full range of property matters which affect data centre developers, investors, operators, service providers and end-users. We regularly advise on development and purchase agreements, leases, rent reviews and alterations, landlord’s covenants and security/confidentiality,
agreements for lease and utilities issues, service levels and remedies for breach.
Energy
Power and ‘Green IT’ issues dominate the data centre industry. We offer specialist advice on power supply agreements, environmental concerns and carbon reduction issues. We regularly advise on on-site renewables provisions in planning applications, infrastructure connections and supply agreements, combined cycle heat and power, fiscal incentives and energy efficiency.
Nabarro’s expertise
Leading players in the sector for over a decade
Nabarro’s Data Centres group offers market leading expertise
across a range of specialist services tailored to developers, investors,
funders, operators and end-users.
Construction
Our construction team understands the large variety of issues surrounding initial construction stages as well as the acquisition of existing data centres. We can advise you on security issues and their impact on handover and defects arrangements, power supply with loading verification, damages for late completion, alterations and warranties.
Planning
Classifying data centre use continues to be a vexed issue for planning authorities. Our planning experts have specific experience advising on data centre planning issues including the restrictions and impact of local plan designations and interpretation of planning permissions on proposed and existing data centres.
Tax
Tax considerations can be significant when acquiring, letting or disposing of a data centre. In particular, it is important to consider SDLT, VAT and how best to maximise available capital allowances, including enhanced capital allowances.
Health and Safety
We are able to advise on all health and safety issues, which change as a project evolves from the construction phase to the operational phase. This includes specialist advice on the construction and operational issues such as fire safety, heat, noise and electrical hazards. We advise on compliance and assist clients who face regulatory enforcement.
Technology and Data Privacy
We have a strong track record in advising both customers and data centre owners on all technology contracting and data privacy issues relating to data centres.
This experience ranges from advice on technology fit outs to cloud services and data breach management policies.
“ Nabarro’s expertise in the
data centre and real estate
sectors provide a key role in
GCE’s data centre property
development programme.”
Gary Lees, Managing Director,
GCE Data Centres
1. Power
7 reasons to switch on to Nabarro
2. Resilience
3. Connectivity
Top ranking expertise in all aspects of commercial
real estate, including a data centre sector specialism
Multi-disciplinary teams providing strength
in depth and back up when needed
5. Availability
4. Efficiency
6. Integrity
7. Security
Delivering more value for less
No down-time – 365/24/7 service
Discretion, confidentiality, conflict management
John Staheli Real Estate Managing Associate T +44 (0)20 7524 6343 [email protected] Josh Risso-Gill Planning Partner T +44 (0)20 7524 6124 [email protected] Nicholas Vergette Real Estate Partner T +44 (0)20 7524 6329 [email protected] Penny Moore
Construction & Engineering Partner T +44 (0)20 7524 6217 [email protected] James Snape Energy Partner T +44 (0)20 7524 6804 [email protected]
Your Data Centres group
Key contacts
Nabarro offi ces
London 125 London Wall London EC2Y 5AL T +44 (0)20 7524 6000 Sheffi eld
1 South Quay Victoria Quays Sheffi eld S2 5SY
T +44 (0)114 279 4000 Manchester
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Offi ce 105 Level 1
Tower 2 Al Fattan Currency House DIFC PO Box 506873
Dubai United Arab Emirates T +971 4302 6000
You can fi nd out more about us at: www.nabarro.com
Twitter: @nabarro LinkedIn: nabarro-llp
Nabarro LLP
Registered offi ce: 125 London Wall London EC2Y 5AL.
Nabarro LLP is a limited liability partnership registered in England and Wales (registered number OC334031). It is a law fi rm authorised and regulated by the Solicitors Regulation Authority. A list of members of Nabarro LLP and of the non-members who are designated as partners is open to inspection at the registered offi ce. The term partner is used to refer to a member of Nabarro LLP or to an employee or consultant with equivalent standing and qualifi cations in one of Nabarro LLP’s affi liated undertakings.
Detailed specialist advice should be obtained before taking or refraining from any action as a result of the comments made in this publication, which are only intended as a brief introduction to the particular subject. This information is correct on the date of publication. © Nabarro LLP 2015
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