A Permitting Base Checklist for Data Centers and Power Plants
June 02, 2026 —
Michael S. McDonough, Stephen J. Humes & Stacey C. Wright - Gravel2Gavel Construction & Real Estate Law BlogThere is a lot of talk these days about “license to operate” for data centers, meaning management of the relationships with stakeholders and broader communities concerning both the benefits and adverse consequences of locating a facility in a particular locale. Here, we are speaking of “license to operate” more literally—namely, the legal and regulatory permitting and approval requirements for a privately owned data center whether by itself or colocated with a power generating plant.
Our Base Checklist includes generally and potentially applicable permitting requirements for development and operation, using California as an example. (Taking legal authority Frank Sinatra out of context, “If you can make it there, you can make it anywhere.”) The actual requirements for a given facility would depend, in part, on local law, including planning and zoning laws and plans, and the environment of the site. Just as examples, additional permitting and mitigation requirements might apply if sensitive receptors are located nearby (e.g., noise mitigation for residential dwellings), if sensitive and protected biological resources (e.g., jurisdictional waters and/or protected species) would be impacted, or if the present or former land uses require additional measures (e.g., hazardous materials remediation, mitigation for conversion of prime farmland, or protection of cultural resources). The scope of permit requirements would ultimately be determined by the applicable regulatory agencies and by the lead and responsible agencies under the applicable state environmental land use regime—in our reference case here, the California Environmental Quality Act (CEQA).
Reprinted courtesy of
Michael S. McDonough, Pillsbury,
Stephen J. Humes, Pillsbury and
Stacey C. Wright, Pillsbury
Mr. McDonough may be contacted at michael.mcdonough@pillsburylaw.com
Mr. Humes may be contacted at stephen.humes@pillsburylaw.com
Ms. Wright may be contacted at stephen.humes@pillsburylaw.com
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At the Intersection of Indemnity and Prevailing Wages
March 17, 2026 —
Garret Murai - California Construction Law BlogIn a case that I’m frankly surprised I don’t see more of, the 2nd District Court of Appeal of California examined an indemnity claim by a subcontractor against a general contractor and public entity who mistakenly believed that a construction project did not require the payment of prevailing wages.
The Nabors Case
In
Nabors Corporate Services, Inc. v. City of Long Beach, 108 Cal.App 540 (2025), subcontractor Nabors Corporate Services, Inc. sued general contractor Tidelands Oil Production Company and the City of Long Beach after it was found liable in a class action lawsuit for failing to pay prevailing wages to its employees. Nabors’ contract with Tidelands did not require the payment of prevailing wages and neither Tidelands nor the City believed that the project, which involved “oil well plug and abandonment” work, required the payment of prevailing wages.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Data Center Construction and the AEC Partner of the Future
April 14, 2026 —
Aarni Heiskanen - AEC BusinessDuring my involvement in designing mobile phone production facilities, the speed of design and construction was critical. Any delay could directly translate into lost revenue. That same logic now applies to data centers, though the stakes are much higher. Instead of optimizing physical production lines, we are constructing infrastructure for digital production.
The global data center capacity is expected to nearly double by 2030, and with this level of demand, the traditional project-by-project delivery model begins to show its limitations.
Data centers are no longer isolated projects in the traditional sense. They are evolving into repeatable, scalable production systems, making them ideal environments for AEC process and business model innovation.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Presumption of Prejudice Applies to All Affirmative Defenses Regarding Insured’s Failure to Comply with Post-Loss Policy Conditions
June 23, 2026 —
David Adelstein - Florida Construction Legal Updatesn a recent property insurance coverage dispute, an issue on appeal pertained to the “prejudice” jury instruction associated with the insured’s failure to comply with post-loss policy conditions. The trial court found that the prejudice only pertained to prompt notice and not other post-loss policy conditions. This was reversed on appeal as prejudice applied to ALL the post loss policy conditions that the insured failed to comply with, not just the prompt notice requirement. The prejudice presumption applies to all affirmative defenses regarding an insured’s failure to comply with post-loss policy conditions.
Consider this discussion when dealing with an insurer raising prejudice as an affirmative defense to do an insured’s failure to comply with post-loss policy conditions, and the associated burdens of proof:
On appeal, [the insurer] contends the trial court erred by instructing the jury that the presumption of prejudice was inapplicable to all of its post-loss obligation defenses except prompt notice. We agree.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
“He Chose…Poorly: How Bad DSC Clauses Lead to Project Doom in the Last Crusade of Construction Risk”
March 10, 2026 —
Curt Martin & Lee Banta - ConsensusDocs“We do not follow maps to buried treasure, and X never, ever marks the spot.” That’s the advice that Indiana Jones offered in the Last Crusade film. But what’s beneath the surface isn’t just important to adventure archaeologists. It has real-world application to our industry, where success depends on the stability of materials below the surface.
The study of geology and soils has ancient roots. Egyptians relied on soil stability for the pyramids; Rome built a continent-wide roadway system utilizing subgrade preparation techniques; Medieval builders implemented a rudimentary foundation pier system; Henri Gautier studied what is now called the “angle of repose” for French retaining walls in the early 18th Century.
Through the 19th Century, contractors bore the risk of the stability of their work, and the attendant peril of unforeseen site conditions. But in the early 20th Century, design trades continued to develop increased understanding of soil and underground conditions. In the 1920’s US federal contracts began employing “differing site conditions” clauses, which provided for cost/time adjustments if subsurface conditions differed from expectations. Industry forms followed the federal policy, and these clauses became almost universally accepted.
Reprinted courtesy of
Curt Martin, Peckar & Abramson, P.C. and
Lee Banta, Peckar & Abramson, P.C.
Mr. Martin may be contacted at cmartin@pecklaw.com
Mr. Banta may be contacted at lbanta@pecklaw.com
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Nomos LLP Partner Garret Murai Recognized by Super Lawyers
July 13, 2026 —
Garret D. Murai - California Construction Law BlogNomos LLP Partner Garret Murai has been recognized as a 2026 Northern California Super Lawyer honoree in the area of Construction Litigation. This is the thirteenth consecutive year he has been recognized by Super Lawyers.
Super Lawyers, an annual listing of outstanding lawyers from more than 70 practice areas who have attained a high degree of peer recognition and personal achievement, is limited to no more than five percent (5%) of lawyers in a state who are selected through a multiphase process that includes a statewide survey of lawyers, independent research evaluation and peer reviews by practice area.
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Garret D. Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Building in Arizona’s Data Center Boom: How Federal Executive Orders, State Regulation, and National-Security Policy Are Reshaping the Rules for Developers
June 02, 2026 —
Ryan J. Regula - Snell & WilmerDevelopers and practitioners evaluating data center projects in Arizona face a regulatory environment shifting on three fronts simultaneously. Federal executive orders are opening new land, streamlining permitting, and channeling financial incentives toward qualifying projects — but they are not preempting the state and local rules that most directly affect project economics. A carve-out in the December 2025 Artificial Intelligence (AI) Framework Executive Order preserves Arizona’s authority over data center infrastructure, meaning the Arizona Corporation Commission’s (ACC) rate-classification docket, municipal zoning restrictions, water-use ordinances, and pending grid cost-allocation legislation remain the binding constraints on project feasibility. Understanding where federal tailwinds end and state and local headwinds begin is essential for any developer sizing risk or selecting sites in the state.
The Federal Landscape: An Interlocking Framework of Executive Orders
Five interlocking executive orders are accelerating data center development nationally, but none overrides Arizona’s authority over siting energy, or infrastructure.
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Ryan J. Regula, Snell & WilmerMr. Regula may be contacted at
rregula@swlaw.com
Seattle’s Residential Zoning Transformation: What Property Owners, Buyers, and Investors Should Understand
May 14, 2026 —
Lawrence S. Glosser - Ahlers Cressman & Sleight PLLCSeattle is in the midst of a significant transformation in residential land use policy. Longstanding neighborhood zoning patterns that historically favored detached single-family development are being reexamined in response to housing supply pressures, affordability concerns, and evolving state mandates.
For homeowners, purchasers, investors, and builders, these changes may create substantial new opportunities. They also create a heightened need for careful legal and practical due diligence.
While zoning reform can expand potential uses of property, it does not eliminate the many other constraints that may still govern what can actually be built.
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Lawrence S. Glosser, Ahlers Cressman & Sleight PLLCMr. Glosser may be contacted at
larry.glosser@acslawyers.com
