A Customized Approach to Data Center Construction
June 29, 2026 —
James P. Bobotek, Arielle L. Murphy & Robert A. James - Gravel2Gavel Construction & Real Estate Law BlogData center construction projects are, to put it mildly, distinct. They differ from traditional construction in a host of manners, and are particularly distinctive because the value of the facility depends on unique measures of performance. A center that cannot meet uptime, cooling, redundancy or connectivity standards will not achieve its mission, whether or not the structure itself meets standard industry contract-form “substantial completion” or “mechanical completion” definitions.
Owners, developers, lenders, operators and hyperscalers—especially hyperscalers!—want it all. They seek favorable and stable pricing, accelerated delivery and sophisticated components, all of which are evolving in “real project time.” Standard construction contract forms deserve extensive modifications to align clauses with expectations, with a heightened focus on systems integration, commissioning, and allocation of special risks. This article details customized considerations for drafting, negotiating and administering data center design and construction agreements.
Reprinted courtesy of
James P. Bobotek, Pillsbury,
Arielle L. Murphy, Pillsbury and
Robert A. James, Pillsbury
Mr. Bobotek may be contacted at james.bobotek@pillsburylaw.com
Ms. Murphy may be contacted at arielle.murphy@pillsburylaw.com
Mr. James may be contacted at rob.james@pillsburylaw.com
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Samuel Alhadeff Represents LGI Homes in Acquisition and Re-Entitlement of Maravilla Estates
July 06, 2026 —
Lewis BrisboisTemecula Partner Samuel Alhadeff recently represented LGI Homes in its acquisition and re-entitlement of Maravilla Estates, a 169-lot active adult community located in San Jacinto, California.
The acquisition and re-entitlement of the project provide LGI Homes with the opportunity to deliver much-needed age-qualified housing in one of Riverside County's growing residential markets. The community includes a recorded final map and finished lots, as well as future development inventory and planned amenities, positioning the project for continued development and completion.
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Lewis Brisbois
Doctrine of Substantial Performance When It Comes to Payment
July 27, 2026 —
David Adelstein - Florida Construction Legal UpdatesA recent non-construction case touches upon the doctrine of substantial performance when it comes to payment. In this case, a club was to make two payments to secure a rapper’s attendance. The first payment was made. The second payment was made but was a few hundred dollars short of the agreed amount. The rapper did not show up. The club claimed it substantially performed its obligations. At first glance, the argument makes sense because the second payment fell only a few hundred dollars short. But that wasn’t the case when it comes to pre-commencement payment obligations:
Substantial performance applies only when the variance from the contract terms “is inadvertent or unintentional and unimportant so that the work actually performed is substantially what was called for in the contract.” However, when one party agrees to pay the other on or before a specific date, time is of the essence, and the payor is required to pay the payee on or before that date. “There is almost always no such thing as ‘substantial performance’ of payment between commercial parties when the duty is simply the general one to pay. Payment is either made in the amount and on the date due, or it is not.”
Big Gate Records, LLC v. Washington, 51 Fla.L.Weekly D1281a (Fla. 2nd DCA 2026) (internal citations omitted).
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
New York Enacts First-in-the-Nation Statewide Data Center Moratorium
August 03, 2026 —
Joshua L. Sturtevant - SheppardAs of May 2026, nearly 12 gigawatts of data center load requests were in the New York Independent System Operator interconnection queue, with more than two-thirds of capacity requests entering the queue in 2025 alone. On July 14, 2026, in response to concerns over this rapid growth, Governor Kathy Hochul issued Executive Order No. 62 (the “Order”) imposing a temporary moratorium on data centers in New York State. Among the concerns cited in the Order are the cost burden on ratepayers associated with transmission upgrades required to accommodate large loads, potential environmental impacts, and large-scale water use.
The moratorium is intended to halt activities while the state government develops a comprehensive legal framework for data center development. While dozens of municipal and county-level moratoriums are in place throughout the U.S., and while the legislatures of several states, including Maine, have proposed moratoriums, the Order is the first statewide moratorium to be enacted nationally.
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Joshua L. Sturtevant, SheppardMr. Sturtevant may be contacted at
jsturtevant@sheppard.com
CEO: Power Isn’t the Only Electrical Challenge for AI Data Centers
April 14, 2026 —
Francesco "Frio" Iorio - Engineering News-RecordEveryone knows that data centers are voracious consumers of electricity. In fact, the U.S. is currently scrambling to meet unprecedented levels of power demand not seen since
the early days of electrification and the widespread adoption of air conditioning.
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Francesco "Frio" Iorio, Engineering News-RecordENR may be contacted at
enr@enr.com
Insurer Dispenses with Bad Faith Claim on Summary Judgment
June 22, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe court granted the insurer’s motion for partial summary judgment because the insured failed to present evidence that the insurer failed to conduct a reasonable investigation. PSY Burger, LLC v. State Farm General Insurance Company, 2026 U.S. Dist. LEXIS 66991(C.D. Cal. March 20, 2026).
The insured’s commercial property suffered heavy damage from tropical storm Hilary. State Farm denied coverage to repair the damage. The insured sued State Farm alleging breach of contract and bad faith due to an inadequate investigation. Apparently, the insured did not retain an expert to opine on claims handling.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
No Ink, No Problem: When Employees and Agents Can Enforce Arbitration Agreements
August 11, 2026 —
Jordan Heath & Jacob Morrison - ConsensusDocsArbitration is a fundamental component of modern construction contracting. Many in the industry recognize the potential benefits and protections arbitration can provide to the business in the event of a dispute. But an important question many contracts do not address is: who does the arbitration agreement cover? Does it include the business entity only, or the individuals acting on behalf of the entity?
As courts have long recognized, entities can generally only act through their employees, representatives, or agents.[1] This article discusses the circumstances in which an agent may rely on an arbitration provision entered by its employer. This is known as the agency doctrine.
Reprinted courtesy of
Jordan Heath, Associate, Jones Walker LLP and Jacob Morrison, Law Student University of Georgia, Jones Walker LLP
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jheath@joneswalker.com
Insurer Cannot Raise Issues on Appeal that Were Not Presented to the Trial Court
June 15, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe Florida Court of Appeals affirmed a judgment on a collapse claim for the insured, rejecting the insurer’s arguments that were not presented to the trial court. Homeowner’s Choice Prop. & Cas. Ins, Co. v. Oakes, 2026 Fl. App. LEXIS 2086 (Fl. Ct. App. March 18, 2026).
The insured’s ceiling collapsed in the secondary home on the insured’s property. The claim was reported to the insurer, but coverage was denied after its investigation.
The insured sued the insurer for breach of contract. Under the Additional Coverage provisions of the policy, collapse was covered if it was “abrupt.” An abrupt collapse was not covered, however, if exclusions for “Fungi, Wet or Dry Rot” and “faulty, inadequate or defective design, specifications, workmanship, repair, construction, renovation, remodeling, materials or maintenance” applied. The collapse provisions contained no language stating that the coverage granted in the provision was also subject to all the other exclusions in the policy.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com