Megawatts to Megabytes: Orrick’s 2025 Guide to Developing, Financing & Powering Data Centers

The data center industry is experiencing unprecedented innovation. Global capital expenditure surged 51% in 2024, reaching $455 billion. By 2030, worldwide data center power demand is expected to rise by over 900 terawatt hours, fueled by the continued growth of AI and cloud computing. This rapid expansion brings both opportunity and complexity for industry stakeholders.

Orrick’s 2025 reference guide to data centers is built on actionable insights, legal analysis, and market intelligence. It should be useful for industry veterans, companies that are entering this space for the first time, and people just trying to better understand the market.

What Are The 5 Key Elements of Data Center Development?

Drawing on our experience across all facets of the industry, we break down the challenges and solutions shaping the future of digital infrastructure, including:

• Navigating grid constraints and regulatory challenges
• Power procurement strategies, including 24/7 clean energy solutions
• Innovative financing approaches for capital-intensive projects
• Leasing, M&A, and tax considerations unique to the sector
• Social license, community engagement, and environmental impacts

Orrick’s Data Center Practice

Our cross-disciplinary data center team provides comprehensive support for data center operators, developers, investors and power developers, helping clients anticipate risks, seize opportunities, and shape the digital infrastructure of tomorrow. Over the past 15 months, we have supported more than 25 innovative data center transactions—including six landmark PPAs—across 20 countries.