Big law firms such as Kirkland & Ellis and White & Case are capitalizing on the boom in data center construction, setting up dedicated teams to handle the complex legal work involved. Attorneys at these firms report a significant surge in deal-making, with one partner at Kirkland & Ellis citing $110 billion worth of deals over the past 12 months. The firms see opportunities not only in advising clients on construction and operation but also in building "guardrails" to protect them from potential lawsuits. Major law firms are hiring specialists from various fields to handle the range of legal skills required for data center projects, which can involve land acquisition, energy deals, and complex contracts.
Written by the local model on 2026-09-07,
using this article's own text rather than the other coverage of the
same event (that is the story summary below).
Story summary
Law firms like Kirkland & Ellis and White & Case are capitalizing on the growing demand for data centers, setting up specialized teams to advise on construction, powering, and operation of these facilities. The rush to build data centers has brought in a deluge of deals worth billions of dollars, creating fierce competition for talent among major law firms. Melissa Kalka, a partner at Kirkland & Ellis, claims to have advised on $110 billion worth of deals in the last 12 months, mostly related to AI data centers and associated energy projects. As a result, these digital infrastructure desks have become some of the busiest and most lucrative areas of law firms, attracting lawyers from various fields including energy, real estate, insurance, and finance. Kalka's team at Kirkland & Ellis now has over 100 members. This trend suggests that big law firms are adapting to the rapidly changing landscape driven by AI development and its associated infrastructure needs.
Written for “Law Firms Target Data Centers” on 2026-09-07,
grounded in this article and the 0 other(s) covering the same event.
The rush by AI hyperscalers and their Wall Street backers to build billions of dollars’ worth of data centers and associated energy projects has set off fierce competition for talent among major law firms.
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rush → build → firms
A few years ago, electricity-related dealmaking was a backwater at many Wall Street firms, often immersed in staid regulation and involving relatively small deals.
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dealmaking → relate → deals
That has completely changed, attorneys at several big firms told Semafor.
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attorneys → change → Semafor
Faced with a deluge of deals for the construction, powering, and operation of AI data centers, most have set up dedicated digital infrastructure desks — drawing in lawyers specializing in energy, real estate, insurance, finance, and other fields — which have quickly become among the busiest and most lucrative in the office.
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which → face → office
“Personally, I’ve done $110 billion worth of deals in the last 12 months,” said Melissa Kalka, a partner on the digital infrastructure team at Kirkland & Ellis, which now counts more than 100 people.
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which → do → people
“This is the most dynamic industry in the economy right now,” she said.
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she → say → economy
“Having a firm that can be nimble from leadership down is what will make you successful or not.”
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you → have → leadership
Tim’s view
The potential future winners from the AI boom are still being decided, with a lot of risk still present for many players in the ecosystem: Hyperscalers are taking on massive debt; private equity is piling into new power plants that could end up struggling to find customers; power equipment manufacturers are being cautious about scaling up factory lines; utilities are under immense political pressure to keep their costs down.
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utilities → decide → costs
Data centers make good work for Big Law: They’re complex legal beasts with many moving parts, from land and cash to gas turbines and GPUs.
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They → make → turbines
They require contracts where no boilerplate language or precedent exists, and where the only real guide to normal market conditions is the last project someone announced.
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someone → require → conditions
And the range of legal skills required to bring a project from concept to operation creates opportunities for big firms to pitch clients on a long list of services.
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firms → require → services
Much of the work is also focused on building guardrails to protect clients from lawsuits — coming from business partners, local officials, or angry neighbors — in an industry that has an increasingly visible target on its back.
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that → focus → back
When the wave of data center dealmaking crests in the years ahead, the wave of data center litigation will likely be close behind.
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wave → crest → litigation
“We’ve seen the scale and complexity of the assets, the transactions surrounding them, and ultimately the legal and commercial risks that our clients are going to need to navigate, change dramatically,” said Heather McDevitt, chair of White & Case.
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McDevitt → see → White
The firm has advised on more than $100 billion in data center deals in the past few years, she said, and set up a dedicated practice last year, supported by new hires in the US, Europe, and Asia.
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she → advise → US
A bigger team is also important because there’s pressure to act fast
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team → ’ → ?
: “We’re seeing deals that could have taken 3-6 months being done in 3 weeks,” said Barbara Melby, a partner at Morgan, Lewis & Bockius.
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Melby → see → Morgan
That means there’s also cut-throat competition between firms for talent, all the firms I spoke to said, with higher pay and promises of more rapid deal flow.
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I → mean → flow
More summer interns and recent law school grads are looking for spots on data center teams.
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interns → look → teams
But because so much of this field is brand-new, there’s still a deficit of experienced lawyers, which creates a “challenge of maintaining quality while continuing to grow,” Latham & Watkins partner Chirag Dedania said.
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Dedania → ’ → quality
Still, there’s little alternative to hiring: “It’s about self-preservation, and whether you want to sleep.”
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you → ’ → preservation
The hiring scramble has led some lawyers to overstate their credentials, an attorney at one major firm told me: “When you go on LinkedIn or read firms’ web pages, everybody and their brother is a digital infra and power lawyer now.”
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everybody → lead → pages
Conversely, for some young attorneys with an interest in the energy transition, the fact that much of the data center buildout is being powered by new natural gas plants has been a turnoff for joining digital infrastructure teams, another said.
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another → power → teams
Notable
- Congressional Republicans remain divided on their response to the data center backlash. US President Donald Trump’s comment that data center opponents want to “end up being backwards and poor” is fueling further dissent within his party.
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opponents → divide → party
