Our Data Centers & Digital Infrastructure Practice
We advise across the sector’s core subsectors and value chain:
Strategy and structuring. We design platform‑ready legal architectures for developers, investors, and hyperscalers, including holdco/propco/opco splits, shareholder arrangements and governance, land and utility ring‑fencing, capacity offtake, and interconnection. We implement documentation suites that accommodate multi‑tenant models, staged capacity delivery, tier and SLA alignment, change‑in‑law provisions, and expansion rights.
Development, EPC and O&M. We prepare and negotiate bespoke or FIDIC‑based EPC and multi‑prime packages for data halls, electrical and mechanical systems, generators, battery storage, chillers, white space fit‑outs, and campus works. We align performance/security regimes with phased completion, testing and commissioning, performance/availability guarantees, liquidated damages, and handover.
Real estate and utilities. We secure and perfect land rights under local title, usufruct, musataha, and long lease models; obtain easements/rights of way; and coordinate zoning, environmental and building permits. We structure grid‑tie and private wire arrangements, district cooling supply, water reuse, and backup fuel logistics, with step‑in and curtailment protections. We also implement power procurement solutions—regulated tariffs, bilateral/wheeling arrangements, behind‑the‑meter generation and renewable PPAs/Green I‑RECs—aligned to capacity ramp profiles and uptime obligations.
Telecoms and cloud regulation. We secure or structure around telecom licensing for data transmission, co‑location, peering, IXPs, CDN nodes, and managed services. We implement data localization and sovereignty solutions that comply with KSA, UAE, Kuwait, Qatar, Bahrain, Oman, and Egypt regimes and sector‑specific rules (financial, health, government). We integrate cross‑border data transfer mechanisms and security-by-design requirements for national critical infrastructure.
Tower and wireless infrastructure. We advise on sale-and-leasebacks, build‑to‑suit, and managed services for macro towers, rooftop sites, IBS/DAS, small cells, and 5G deployments. We calibrate MLAs and SLAs, space and load, power provisioning, backhaul, colocation, “golden site” governance, decommissioning, and regulatory site compliance.
Financing and PPP. We structure conventional and Islamic project financings, portfolio financings, vendor finance and ECA‑backed solutions, stapled equity, and securitizations of long‑term availability/capacity cash flows. We implement PPP/BOOT variants for sovereign or municipal digital infrastructure, including tender documentation, bid strategy, project agreements, risk allocation, and financial close.
M&A and platform building. We execute platform acquisitions, minority growth investments, and carve‑outs of non‑core assets; implement governance and waterfall structures; and manage merger control and foreign investment clearances across the region.
Disputes readiness. We embed robust pre‑dispute mechanics and are equipped to act swiftly in urgent relief, expert determinations, and arbitration/litigation under local civil law frameworks and international rules.
Data Centers: Market and Legal Overview
Data centers are mission‑critical facilities that combine specialized real estate, high‑availability power and cooling, and carrier‑dense connectivity to provide secure, always‑on compute capacity. In the Middle East, growth is propelled by national digitization agendas, AI adoption, cloud localization policies, fintech/open banking, OTT/media distribution, and content caching close to users. Our role is to translate these dynamics into contract suites and regulatory positions that are financeable and enforceable under Arab Civil Law.
Asset classes and configurations. Hyperscale single‑tenant builds; wholesale colocation with multi‑megawatt halls; retail colocation with shared white space; and edge/MEC sites integrated with 5G and fiber backhaul. We structure holdco/propco/opco variants, cross‑collateralization or ring‑fencing of campuses, and scalable MSAs with expansion and right‑of‑first‑offer mechanics.
Site selection and land tenure. We evaluate proximity to grid, substations and fiber routes; zoning and setback criteria; noise, vibration and emissions limits; flood/heat risk; and aviation or defense restrictions. We implement ownership, long lease, usufruct or musataha depending on jurisdiction, with options for staged take‑down and protections against adverse possession and compulsory acquisition.
Commercial models. MSAs/CSAs with reserved capacity, take‑or‑pay and ramp‑to‑full mechanics; cross‑connect pricing; neutrality/non‑discrimination; customer handback and decommissioning; and technology refresh. For hyperscalers, bespoke build‑to‑suit and powered‑shell models with expansion options and bespoke security overlays are common.
Delivery models and contracting. EPC wrap, multi‑prime, CM at‑risk, or alliancing models. We calibrate interface risk among civil, electrical and mechanical packages; long‑lead equipment orders and price‑escalation indexes; LDs for delay and under‑performance; bonus regimes for early capacity; and change‑in‑law relief tied to specific regulatory triggers.
Financing and bankability. Project, portfolio and holdco financings—both conventional and Sharia‑compliant—with security over land rights, fixtures and equipment, receivables and step‑in to O&M and MSAs. Key bankability issues include robustness of offtake, availability‑based remedies, political and regulatory risk, FX convertibility, and enforceability of security and step‑in under local civil codes.
Regulatory themes. Data localization and residency for government, financial and health data; cloud security requirements; encryption and key sovereignty; export controls on equipment; and classification as national critical infrastructure with attendant security and reporting duties. We build regulator‑vetted positions and bilingual filings across KSA, UAE, Kuwait, Qatar, Bahrain, Oman and Egypt.
Representative Services
Regulatory and licensing. Cloud and hosting approvals; critical infrastructure classification; telecom service licensing and exemptions; in‑country data processing; cybersecurity compliance; incident response.
Project development. Land and utility diligence; EPC, supply and long‑lead equipment procurement; grid/district cooling capacity reservation; commissioning and acceptance; availability and performance regimes; spares and obsolescence strategies.
Commercial models. Wholesale and retail co‑location agreements; MSA/CSA capacity commitments; cross‑connects and meet‑me arrangements; interconnection and peering; neutrality and non‑discrimination frameworks.
Tower programs. Master lease and MLA frameworks; build‑to‑suit schedules; power and maintenance obligations; site acquisition and permitting; active sharing and MORAN/MOCN arrangements where applicable.
Financing. Conventional and Sharia‑compliant senior debt; mezzanine and holdco PIK; hedging; security packages over concessions, receivables, land rights, fixtures and equipment; intercreditor and DSA regimes; step‑in and cure.
Risk and compliance. Data protection and privacy; NIS/cybersecurity; sanctions/export controls on equipment; ESG and energy efficiency; supply chain resilience (ITAR/dual‑use).