Data Centres

The demand for data centre capacity is rising rapidly, due to a surge in data storage requirements driven by artificial intelligence, cloud computing and the digital economy. Political and economic uncertainty is fuelling a growing demand for data sovereignty, with organizations seeking domestic data storage solutions. This emerging industry brings many new challenges, including complex energy supply agreements and data liability risks. Data centre owners (both public and private), operators, investors, clients and suppliers need legal advisers who understand the complexities of this evolving critical infrastructure.

As a full-service Canadian firm, Blakes offers extensive expertise relevant to investors, owners and operators of data centres across Canada. We regularly advise on data centre transactions, including acquisitions, joint ventures, development agreements, colocation agreements, financing, commercial real estate, employment law requirements and dispositions. Our integrated team collaborates to address operational requirements such as technology agreements, energy supply agreements, regulatory compliance, data governance and intellectual property management. In an ever-evolving political landscape, we also provide practical and effective counsel on dealing with all levels of the Canadian government, including political and legislative processes, approvals and initiatives, procurement issues, advocacy, and public policy and legal reform.

By leveraging our deep industry knowledge and multidisciplinary approach, Blakes is well-equipped to support the diverse legal needs of data centre clients, ensuring their projects are successful and compliant with all applicable laws and regulations.

We offer comprehensive legal support in the following areas specific to data centres:

Real Estate and Construction: We handle all aspects of real estate and construction transactions, from site acquisition and leasing to zoning and land use planning, to support the establishment and expansion of data centres.
Energy and Power: Our team has deep industry experience advising on a full range of power transmission and energy distribution matters, including services and planning considerations, substation siting and development, generator/transmission interconnection and distribution agreements, power purchase, supply, maintenance and repair agreements.
Regulatory Compliance: We help our clients navigate a complex web of federal and provincial regulations, including data privacy laws, environmental standards, industry-specific requirements, energy markets, and generation and transmission.
Public-private partnership (P3): Many government-owned data centres need upgrades, replacements or expansions. Constructing these facilities requires managing construction, operational risks and financial responsibilities. Blakes specializes in large-scale infrastructure and P3 transactions both nationally and internationally.
Privacy and Data Security: Our team provides guidance on safeguarding sensitive information, implementing robust cybersecurity measures and navigating data breach responses.
Commercial Contracts: Our experts draft and negotiate various agreements, including service level agreements (SLAs), colocation agreements and vendor contracts, tailored to the specific needs of data centre operations and clients.
Intellectual Property: We assist in protecting and managing intellectual property assets, including patents, trademarks and trade secrets related to data centre technologies.
Dispute Resolution: We offer strategic counsel and representation in resolving all kinds of disputes through negotiation, arbitration and litigation, ensuring minimal disruption to data centre operations.
Employment and Labour: We provide advice on employment contracts, workplace policies, compliance with labour laws and addressing employment disputes within data centre facilities.
Taxation: Our tax specialists provide advice on tax-efficient structures, compliance with tax regulations and strategies to optimize financial outcomes for data centre projects.