Davis Polk partner Brian Hirsch was quoted in Law360 discussing data center transaction trends in 2025.

Noting that he has seen developers raising money through high-yield bonds for data center construction in recent months, Brian said, “That is so far afield and different from traditional sources of construction financing, whether it be real estate construction loans or project finance. That changes the whole dynamic.”

“In the data center construction context, a high-yield bond offering would be priced and funded to a developer in one lump sum,” Brian explained. “The process is different from typical construction financing where debt proceeds are funded in installments as a project progresses, keeping a lender’s exposure tied to what’s been built.”

The article also highlighted that navigating the pace of transactions was one of the biggest challenges attorneys faced when advising data center deals in 2025.

Brian said, “The speed at which one can execute is a huge competitive advantage for players in the space and so, they’re relying on the lawyers for their part of the transaction to not slow them down.”

“You’re often getting documents in at midnight, needing to turn them in overnight on massive amounts of complex stuff with limited information. You have to be able to do that, because that’s what the clients need to win deals,” he added.

“A Blockbuster Year For Data Centers,” Law360 Real Estate Authority (December 17, 2025) (subscription required)

Copy link to share post