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ARTICLE · 23 APRIL 2021

Data Centre Investing - Avoiding The Legal Pitfalls

Mayer Brown
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Data centres have moved from being an "alternative" real estate asset class to the mainstream in recent years. With the advent of 5G and continued digitisation of work and home life...

Hong KongReal Estate and Construction
David Ellis
David Ellis
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Owning a Data Centre – the Emergence of a New Real Estate Asset Class

Data centres have moved from being an "alternative" real estate asset class to the mainstream in recent years. With the advent of 5G and continued digitisation of work and home life, strong demand for data centres is expected to continue despite increases in supply. They are attractive to investors as yields are currently higher than for more traditional real estate assets; for example, the yields across Asian markets are currently 50-150bps higher for data centres than prime modern logistics assets. Despite being a mainstream asset, data centres are a different beast to the traditional office, retail, residential and logistics asset classes and so present different risks and challenges. This article guides readers around a few of the potential legal pitfalls for those intending to acquire ownership of data centre real estate.

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This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.

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