Press Coverage February 26, 2025

AI Efficiency A Risk for Data Centers? Attys Don’t Think So

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Carl H. Bivens

Carl Bivens, a partner with Troutman Pepper Locke’s Data Centers team, was quoted in the February 26, 2025 Law360 article, “AI Efficiency A Risk for Data Centers? Attys Don’t Think So.”

Carl Bivens — a partner with Troutman Pepper Locke LLP who advises various types of clients in the data center space including real estate, energy and technology companies — said terminations are typical in the earliest stages of negotiations, when a prospective customer is analyzing a property and deciding whether to move forward on it.

“There are a lot of reasons that these projects will get terminated in the due diligence period phase,” Bivens said. “Once the project has passed the due diligence period phase, and the lease or the purchase agreement has gone hard, then typically the terminations would only be because the delivery can’t meet the time schedule that is required under the lease.”

“I don’t think that there’s a trend in the market of tech companies terminating leases for data centers,” he noted.

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