Powered by Lexis+®
Jurisdiction(s):
United Kingdom

Arbitrating the AI-fuelled data centre boom: investment treaty protections, FIDIC construction disputes, and strategies for resolving cross-border operational claims amid energy incentives and regulatory risk

Published on: 03 September 2025

Published by a LexisNexis Arbitration expert
Legal News
imgtext
Article summary

Booming investment and energy incentives may lead to investor-state disputes

Data centres have long underpinned cloud storage, streaming platforms and the broader digital economy, yet AI is now propelling extraordinary demand for larger and more capable facilities. The US hosts the greatest number of hyperscale data centres—‘hyperscalers’ used by major tech giants such as Microsoft, Google, Meta and Apple—for intensive compute and storage, and US demand is forecast to more than triple between 2024 and 2030, requiring upwards of US$500bn in capital. However, although the US sets the pace, most fresh deal-making for data centres is occurring beyond its borders as operators hunt for cheaper land and reliable, low-cost power. Leading development hotspots include Asia-Pacific nations like India, Malaysia, Thailand and Vietnam, alongside rising markets across the Middle East, Africa and Latin America. In Africa, for instance, the Bharti group is building its first hyperscale site on the continent in Nigeria, while Huawei is rolling out a new cloud region in Cairo. Elsewhere in Latin America and the Middle East, developers are pursuing similar plays, matching affordable property with access to renewable or inexpensive generation to manage operating costs. Running data centres consumes vast quantities of energy to operate at scale...

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Popular documents

When evaluating a general damages claim, the practitioner ought initially to refer to the Judicial College Guidelines (JCG)...

Read More Right Arrow

This Practice Note This Practice Note reviews mechanisms used in settling litigation. A Tomlin order consists of a consent order paired with a schedule. It operates to stay proceedings on terms that have been agreed. The provisions contained in the schedule may remain confidential. This Practice Note describes the scope of confidentiality attaching to the schedule and sets out how it differs from a standard consent order. Sample wording for a Tomlin order is included, alongside links to precedents, as well as guidance on court approval. It also addresses varying, setting aside and enforcing a Tomlin order, including the considerations the court will take into account when handling applications for each. Further guidance is provided on interpreting and applying the relevant provisions of the CPR; however, some courts and divisions impose very specific requirements for both drafting and approval, and for approaching the schedule and confidentiality issues. Accordingly, you must consider the particular rules and court guide provisions in the forum where your claim is proceeding when drawing up the Tomlin order...

Read More Right Arrow

Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

Read More Right Arrow

I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...

Read More Right Arrow