With technology advancing rapidly and new "power hungry" industries stemming from artificial intelligence constantly emerging, Herzog has developed a multi-disciplinary specialist practice to support various aspects in the could infrastructure and data center fields.
The growing need for the establishment and operation of data centers, and their tremendous growth as an asset class, affects numerous and continually evolving transaction skills, requires in depth familiarity with various regulations, and entails site and project specific review.
Our areas of focus in this space include:

Commercial

Our team specializes in drafting and negotiating relevant agreements with customers and suppliers, such as hosting and co-location agreements, and tending to all aspects related to the commercial development of the project.

Environment & Climate Change

Our team provides expert legal counsel throughout the lifecycle of data center projects, from initial planning and construction to ongoing operations, ensuring full compliance with domestic environmental regulations and international environmental standards. Our services include guidance on compliance, enforcement, and licensing, along with thorough due diligence to assess and mitigate risks associated with non-compliance. We advise in relation to incorporation of environmental obligations into contracts, covering key aspects such as energy efficiency and management of hazardous materials and waste. The team also advises on matters relating to application for and renewal of operational permits and licenses, ensuring smooth operations. We additionally advise on climate change legal and regulatory matters, on both domestic and international levels.

Real Estate & Construction

Our team advises on all local legal aspects pertaining to the unique real estate components of data center projects in Israel, including real estate acquisition and lease agreements, agreements with design, construction and development of the large infrastructure projects, planning and zoning matters, municipal taxes, aspect concerning the Israel Lands Administration and cooperative associations.

Financing

Our team advises on obtaining and restructuring loans and other financing schemes that may be relevant for data center projects, including advice on securing such loans and subordination, non-disturbance and attornment agreements (SNDAs).

Litigation & Dispute Resolution

Our team assists in analyzing client agreements and relationships to identify potential exposure to litigation (individual or class actions) and advise regarding potential hedging against such exposure.

Further, our teams can prepare dawn raid protocols and provide management and IT personnel training for dawn raid situations.

M&A

Our teams specialize in joint venture agreements, mergers and acquisitions and other corporate matters, shareholder agreements, and corporate aspects pertaining to various stages of investment, acquisition and disposition of data center projects

Tax

Our teams provide advice on the structuring of data center acquisition and investment projects (including from the perspective of a broader international group) as well as operational aspects (e.g. VAT considerations, special tax incentives, treatment of significant capital expenditure for tax purposes).

International Trade & National Security

Our teams provide ongoing support on regulatory aspects, such as compliance with governmental requirements and internal security and privacy standards specifically taking into account the critical role that physical and electronic security play in data center operation.

Labour law

Our teams advise on employment contracts and employee related policies and operations (including background checks, foreign employees, 24-hour availability) and other matters pertaining to evolving regulatory changes (especially in the field of privacy laws and data security) that may impact the project.

Data Privacy & Cybersecurity

Processing and hosting data are subject to various data protection, cybersecurity, operational resilience and AI laws. These legal frameworks and applicable jurisdictions often overlap and sometimes contradict each other. Recognizing the complexity - and understanding the importance of compliance – our teams advise companies in establishing best practices related to data centers and other digital infrastructure.

Telecommunications

Our teams advise domestic and international companies on provision of telecommunications services—whether terrestrial wireless, satellite or fiber. This advice covers both the regulatory requirements associated with the provision of the service as well as the framework governing importation and use of devices with wireless capabilities. We advise all stakeholders in the telecommunications sector: entrepreneurs, telecom services providers and service resellers on the regulatory and policy aspects of the procurement and provision of telecommunications services.

Energy

Our teams provide developers, sponsors, financiers, independent power producers, transmission and distribution companies, and investors in transactions involving electric generation projects and assets with a full range of legal services. We also have a dedicated renewables group of attorneys who understand the technical and commercial issues involved in renewable projects and advise on challenging renewables mandates.

ESG

Our teams provide market-leading advice to clients on adopting and integrating critical Environmental, Social and Governance (ESG) policies for navigating complex and rapidly evolving ESG issues.

BCP & BIA

Through our affiliate Herzog Strategic, we are able to offer end-to-end support for business continuity and Business Impact Analysis (BIA), for various organizations to ensure that your organization is well-prepared and resilient for future crisis.