Texas Prepares to Restart Data Center Construction, with Around 300 Projects Under Review And 6,608 MW Awaiting Energization Approval, Driving Demand for Rapid-Response Lifting Operations
October 20, 2026 —
SarensTexas is experiencing an unprecedented increase in power demand. The ERCOT (Electric Reliability Council of Texas) power grid reached a record peak demand of 91.1 GW in summer 2026, 6% above the previous record, according to the U.S. Energy Information Administration (EIA). This is compounded by interconnection requests totaling around 474 GW, more than five times the record peak, with approximately 90% of these requests related to data centers, according to the Office of the Governor of Texas. Within this context, authorities have launched a comprehensive review process. In August , the Governor directed the Public Utility Commission of Texas (PUCT) and ERCOT to audit all data centers progressing toward grid connection, covering around 300 projects. ERCOT has also suspended approvals to energize data centers of 75 MW or more and has set December 10 as the date for the publication of its reports.
For the industry, this pause creates a valuable planning window. Goldman Sachs notes that it takes 18 to 24 months to build a data center once permits have been secured, while only 50% to 60% of planned capacity is delivered on schedule. Supply chain constraints and labor shortages are among the most common causes of delays. In this context, construction agility is becoming increasingly critical. A one-month delay at a typical 60 MW U.S. data center is estimated to cost up to $14.2 million in lost revenue, additional costs and penalties, according to STL Partners data. Against this backdrop, Sarens, which has operated in the U.S. since 2009 and is headquartered in Houston, with offices also in Odessa and Beaumont, positions as a logistics partner for developers and contractors preparing for the execution phase.
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Sarens
Citadel’s Miami HQ Construction on Hold After Accident, Report Says
October 12, 2026 —
Giulia Morpurgo – BloombergConstruction work on Citadel’s new headquarters in Miami has been paused following an accident on the site last week, the Wall Street Journal reported.
The collapse of a rig on Monday prompted county authorities to issue a stop-work order pending an investigation, according to the newspaper, which cited a local building official. It’s unclear how long the stoppage will last or what caused the accident, the WSJ wrote on Sunday, adding that such probes can take up to six months.
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Giulia Morpurgo, Bloomberg
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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Navigating the New Frontier of Federal-State Energy Regulation: What Energy Companies Need to Know
June 08, 2026 —
Ryan J. Regula - Snell & WilmerIntroduction
The jurisdictional boundary between the Federal Energy Regulatory Commission (FERC) and the states is being actively contested, from challenges to landmark transmission planning rules to disputes over emergency cost-allocation orders, in ways that carry significant legal, financial, and operational implications for energy companies. For utilities, independent power producers, and transmission developers, understanding these dynamics is now a strategic imperative.
The Jurisdictional Divide: A Bright Line That Isn’t
The Federal Power Act divides authority between FERC and the states: FERC exercises jurisdiction over interstate transmission and wholesale electricity sales, while states retain authority over generation facilities, retail rates, and decisions about resource mix. The D.C. Circuit has regularly been called upon to “referee the Federal Power Act’s jurisdictional line separating [FERC’s] jurisdiction over the federal wholesale market and States’ jurisdiction over facilities used in local distribution.”1
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Ryan J. Regula, Snell & WilmerMr. Regula may be contacted at
rregula@swlaw.com
Course of Construction Exclusions and the CGL Policy
July 20, 2026 —
Anna M. Perry, Rachel S. Kindseth & Nina Catanzaro - Saxe Doernberger & Vita, P.C.I. Course of Construction Exclusions
Course of Construction (“COC”) exclusions are found on General Liability and excess liability policies, typically a wrap-up or project specific policy, and generally exclude “all property damage occurring during the course of construction.” Insurers claim COC exclusions are not problematic because they are intended to prevent an overlap in coverage between the general liability policy and first-party property Builder’s Risk policy. However, because General Liability policies and Builder’s Risk policies provide coverage for different risks, COC exclusions can create a gap in coverage for owners and contractors. Therefore, any exclusion on a wrap-up or project specific policy that limits coverage for property damage liability should be scrutinized, and amendments sought when warranted and commercially achievable, for owners, developers and contractors because General Liability policies do not cover the same risk as that of a Builder’s Risk policy.
General liability policies provide defense and indemnity to the insured(s) for claims made by a third-party against the insured. Broad COC exclusions serve to preclude coverage for all property damage, not just property damage to the insured project. This includes property damage to property other than the insured project, e.g. an adjacent property. On the other hand, Builder’s Risk policies provide first-party property coverage for direct physical loss to the project during the course of construction. The Builder’s Risk policy will not provide coverage for property other than the project itself (e.g., adjacent property) and it will not provide a defense or indemnity in the event the owner of the damaged property brings a claim against a potentially at-fault party.
Reprinted courtesy of
Anna M. Perry, Saxe Doernberger & Vita, P.C.,
Rachel S. Kindseth, Saxe Doernberger & Vita, P.C. and
Nina Catanzaro, Saxe Doernberger & Vita, P.C.
Ms. Perry may be contacted at APerry@sdvlaw.com
Ms. Kindseth may be contacted at rkindseth@sdvlaw.com
Ms. Catanzaro may be contacted at NCatanzaro@sdvlaw.com
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Daily Journal Publishes Article by Brenda Radmacher on Proposed Overhaul of California Construction Defect Law
June 29, 2026 —
Brenda Radmacher - The Construction SeytDaily Journal (California) featured an article by Construction Law partner
Brenda Radmacher, “A new path for construction defects in California.” The piece, published on June 15, 2026, examines Assembly Bill 1903 and its potential to significantly reshape California’s construction defect framework, particularly for common interest properties.
The article highlights how AB 1903 would overhaul the state’s current right-to-repair system by mandating completion of prelitigation procedures, raising requirements for defect claims, strengthening developers’/builders’ rights to repair, and introducing a voluntary “certified building” program. The legislation aims to rebalance competing interests by reducing litigation-driven costs while preserving protections for homeowners.
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Brenda Radmacher, Seyfarth Shaw LLPMs. Radmacher may be contacted at
bradmacher@seyfarth.com
What Construction Attorneys Do and When Contractors Need Them
August 11, 2026 —
Construction ExecutiveDirect Answer
A construction attorney advises contractors on contracts, payment rights, mechanic's liens, payment bond claims, change orders, delay claims, OSHA matters, defect claims, terminations and dispute resolution. The work covers far more than lawsuits—much of its value comes before a dispute ever becomes formal.
Construction attorneys help contractors protect payment rights, manage project risk, resolve disputes and avoid contract terms that can turn a profitable job into a financial loss. Their work covers more than lawsuits. A construction attorney may review a contract before bid day, help preserve lien rights, respond to a defective work claim, prepare for mediation or defend a contractor after a safety citation.
For contractors, legal counsel is often most valuable before a dispute becomes formal. A missed notice deadline, vague scope clause, unsigned change order or broad indemnity provision can create problems long before a claim is filed. Construction attorneys help identify those risks while there is still time to negotiate, document the issue or preserve leverage.
Reprinted courtesy of
Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Real Estate & Construction News Roundup (7/8/26) – Data Centers Negotiate Flexibility for Speed, Hotel Deal Activities Focus on Luxury, and DC Sues Apartment Owners
July 20, 2026 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, rail projects gain steam across the U.S., AI optimizes building operations, a modular approach speeds data center construction, and more!
- Hyperscalers want their data centers online, and utilities want to provide interconnections, but both are still looking for common operating guidelines. (Herman K. Trabish, Construction Dive)
- Contractors are taking advantage of multibillion-dollar train and transit contracts, even as funding challenges create hurdles for project execution. (Matthew Thibault, Construction Dive)
- Although hospitality and leisure M&A deal volume was down 2.5% in the first half of 2026 compared to the prior six months, investors are concentrating on the upper end of the market, including luxury hotels, wellness resorts and gaming, or “data-rich,” platforms. (Noor Adatia, Hotel Dive)
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Pillsbury's Construction & Real Estate Law Team