Data Centres De-coding the issues

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1 Data Centres De-coding the issues

2 Nabarro s specialisms include: Banking & Finance Construction & Engineering Corporate Dispute Resolution Employment Environment EU, Competition and Trade Financial Services Regulatory Funds and Indirect Real Estate Health & Safety Intellectual Property IT and Communications Pensions Planning Projects Real Estate Regulatory Restructuring & Insolvency Tax Industry sectors Nabarro focus upon include: Energy Data Centres Defence Education Entrepreneurs and SMEs Financial Healthcare Hotels, Gaming and Leisure Housebuilders Infrastructure Life Sciences Manufacturing Public Sector Real Estate Retail Technology Waste

3 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 Data Centres De-coding the issues 01

4 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. 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. 02 Data Centres De-coding the issues

5 Our credentials Plugged into the sector 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. Data Centres De-coding the issues 03

6 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. 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. 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. 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. 04 Data Centres De-coding the issues

7 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. 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. 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 Data Centres De-coding the issues 05

8 7 reasons to switch on to Nabarro 1. Power Top ranking expertise in all aspects of commercial real estate, including a data centre sector specialism 2. Resilience Multi-disciplinary teams providing strength in depth and back up when needed 3. Connectivity Networked to the data centre industry 06 Data Centres De-coding the issues

9 4. Efficiency Delivering more value for less 5. Availability No down-time 365/24/7 service 6. Integrity Discretion, confidentiality, conflict management 7. Security Accredited to ISO standard Data Centres De-coding the issues 07

10 Your Data Centres group Key contacts John Staheli Real Estate Managing Associate T +44 (0) j.staheli@nabarro.com Josh Risso-Gill Planning Partner T +44 (0) j.risso-gill@nabarro.com Nicholas Vergette Real Estate Partner T +44 (0) n.vergette@nabarro.com Penny Moore Construction & Engineering Partner T +44 (0) p.moore@nabarro.com James Snape Energy Partner T +44 (0) j.snape@nabarro.com 08 Data Centres De-coding the issues

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12 Nabarro offices London 125 London Wall London EC2Y 5AL T +44 (0) Sheffield 1 South Quay Victoria Quays Sheffield S2 5SY T +44 (0) Manchester 1 The Avenue Spinningfields Manchester M3 3AP T +44 (0) Brussels 209A Avenue Louise 1050 Brussels Belgium T Singapore Marina Bay Financial Centre Tower 3 12 Marina Boulevard Singapore T Nabarro LLP Registered office: 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 firm 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 office. The term partner is used to refer to a member of Nabarro LLP or to an employee or consultant with equivalent standing and qualifications in one of Nabarro LLP s affiliated 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 Dubai Office 105 Level 1 Tower 2 Al Fattan Currency House DIFC PO Box Dubai United Arab Emirates T You can find out more about us at: LinkedIn: nabarro-llp Data Centres