The rapid growth of artificial intelligence, cloud computing, and other emerging technologies is fueling unprecedented investment in digital infrastructure and increasing demand for reliable, affordable power. From hyperscale data centers and AI campuses to power generation, transmission and energy storage, Babst Calland’s Power & Digital Infrastructure team advises data center developers, technology companies, energy companies, manufacturing plants, utilities, investors and other stakeholders on projects that power the digital economy and advance the next generation of infrastructure.
The next generation of digital infrastructure will require innovative approaches to energy supply. Developers are exploring combinations of grid power, natural gas generation, solar, battery energy storage and other resources to meet growing electricity needs while addressing reliability, cost and sustainability objectives. Projects must address the cost, procurement and generation of power from multiple energy resources, environmental and regulatory compliance, permitting, real estate, land use and zoning requirements, community considerations, construction and commercial agreements and tax incentives.
The rules governing large electric loads are changing quickly, and the consequences are showing up in contracts before they show up in regulations. Whether a project has secured its own power supply has become a threshold diligence question rather than a post-closing problem. Regulatory support is increasingly a condition to closing. Community commitments and local approvals now shape schedule as much as any permit. We help clients identify where those risks sit and allocate them at the term sheet, not at the closing table.
Drawing on the firm’s cross-practice, multidisciplinary legal team, Babst Calland brings deep experience in energy and natural resources, environmental permitting and regulation, emerging technologies, real estate, land use and zoning, construction, corporate transactions, and litigation to help clients evaluate and structure projects while navigating permitting, regulatory, and community considerations.
Our attorneys have extensive experience advising on the legal and regulatory issues associated with energy development and infrastructure projects involving natural gas, electric power, renewable energy, energy storage, pipelines, transmission, and other critical infrastructure.
Our work for clients in this sector includes:
- Real estate development, including site acquisition, entitlements and local ordinances, special permits and government approvals;
- Local land use and zoning, navigating complex local government regulations to secure timely approvals for permitting, construction and expansion;
- Data center development, from site selection and due diligence through permitting, construction and operation;
- Power generation, energy supply and distribution including natural gas, renewable energy, battery storage, utility service and other generation resources; power purchase agreements; behind-the-meter and on-site generation, including integrated and islanded power systems designed to support large energy users, and structuring projects to address capacity, curtailment risk and evolving grid reliability requirements;
- Environmental permitting and regulatory compliance, including air, water and waste permitting, water withdrawal approvals, and other environmental requirements affecting large-scale facilities;
- Federal, state and local policy, regulation and incentives governing development, including evolving requirements applicable to large electric loads;
- Emerging technologies, AI and digital infrastructure, including fiber and communications infrastructure and advanced manufacturing facilities supporting data centers and other digital facilities; and complying with domestic data privacy laws and cybersecurity regulations;
- Construction and project development, including EPC, design-build, O&M and other project agreements;
- Mergers, acquisitions and investment, including platform and project acquisitions, joint ventures and financings, with diligence on power arrangements, site control and regulatory status;
- Leasing and commercial agreements, including build-to-suit and colocation agreements, service level and uptime commitments, and power pass-through and ramp provisions;
- Local incentives and community arrangements, including PILOT agreements, LERTA and other local economic development programs, and community benefit agreements and host municipality negotiations.
With offices throughout the Mid-Atlantic, including Pennsylvania, West Virginia and Washington, D.C., Babst Calland is strategically positioned in one of the nation’s most active regions for data center, energy and advanced infrastructure investment. Our attorneys understand the federal, state and local regulatory environments and requirements that can significantly affect project timelines and economics.
GRID Project Consent Order and Agreement: What Data Center Developers Need to Know
Data Center Development Alert
(by Kate Cooper, Ben Clapp, Anna Jewart and Peter Landau)
Governor Josh Shapiro issued Executive Order 2026-05 (EO), “Protecting Pennsylvania Consumers from Data Center Impacts” on August 18, 2026. …
Pennsylvania’s New Data Center Executive Order: Two Tracks, One Choice
Data Center Development Alert*
(*updated August 20, 2026)
(by Kate Cooper, Ben Clapp and Anna Jewart)
On August 18, 2026, Governor Josh Shapiro signed Executive Order 2026-05, “Protecting Pennsylvania Consumers from Data Center Impacts.” Much of the initial coverage described the order as blocking data center development. …
FCC Widens Tech Crackdown to Humanoid Robots and Power Inverters
TEQ Hub
(by Justine Kasznica, Susanna Bagdasarova, and Morgan Hubbard)
The Federal Communications Commission (FCC) has significantly expanded its Covered List to include foreign-produced advanced robotic devices (including mobile robots such as humanoid and quadruped robots) and connected power inverters, effectively barring most new products in those categories from receiving equipment authorization for importation, marketing, or sale in the United States. …
One Year Later: How Pennsylvania’s Data Center Rules Are Rewriting Deal Terms
Pittsburgh Business Times
(By Kate Cooper)
When U.S. Senator Dave McCormick convened the Pennsylvania Energy and Innovation Summit in Pittsburgh in July 2025, more than $90 billion in new investment in AI infrastructure, energy generation, transmission and workforce development was announced. …
PJM’s Proposal to FERC Targets Data Centers and Other Large Load Customers
Data Center Development Alert
(by Justine Kasznica, Kate Cooper and Peter Landau)
PJM Interconnection (“PJM”) is confronting unprecedented load growth driven by data centers and other large energy users. …
Data Centers, Grid Reliability, and Large Load Regulation: Recent Developments in Pennsylvania and the Region
Data Center Development Alert
(by Justine Kasznica and Susanna Bagdasarova)
Pennsylvania’s data center market continues to evolve rapidly as policymakers, regulators, and grid operators respond to growing electricity demand and reliability concerns associated with large-load customers and AI-driven infrastructure development. …
What’s Next for Data Centers in Pennsylvania? An On-the-Ground Look at Navigating the Opportunities, Challenges
Pittsburgh Business Times
(featuring Justine Kasznica, Gina Buchman, Anna Jewart, and Dave White)
Data center development is accelerating across Pennsylvania, creating both opportunities and complex challenges for businesses and communities. …
Babst Calland Among Top-Ranked Firms in Associate Satisfaction Survey
BTI Consulting Group’s BTI Associate Satisfaction A-Listers 2026: BTI Survey of Law Firms Where Associates are Happiest report recognizes law firms that outperform peers based on direct associate feedback across factors tied to retention, engagement and long‑term career satisfaction. …
Powering the Region’s Data Center Growth
TEQ Magazine
(featuring Justine Kasznica)
Guiding hyperscale and modular projects across Pennsylvania and West Virginia, Babst Calland is helping shape the power-secure future of this mission-critical infrastructure. …
Navigating Opportunities and Challenges for Data Centers in the Region
TEQ Hub
(featuring Justine Kasznica)
The rapid growth of data centers – driven by cloud computing, artificial intelligence, and the need for low-latency digital infrastructure – has transformed what were once primarily real estate projects into some of the most complex developments in the energy and infrastructure sectors in our region. …
