JPMorgan Chase & Co. Faces New Risks as Data Center Boom Sparks Hiring Surge for Lawyers

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The Lawxy Times

Lawxy Times Reporter

13 Jul 2026

JPMorgan Chase & Co. Faces New Risks as Data Center Boom Sparks Hiring Surge for Lawyers

The proliferation of data centers has led to a surge in demand for lawyers with expertise in project finance, infrastructure, real estate, and regulatory compliance. This development is fueled by the explosion in artificial intelligence use, which requires immense consumption of electricity and water in massive facilities. The data center boom creates a compliance obligation for companies to find alternative solutions for power and water consumption. Lateral hires of partners with data center experience increased by 65% last year.

Full News Breakdown

The data center boom is driven by the growing adoption of artificial intelligence, which has caused energy usage to spike. The energy space has long been a steadily humming marketplace where multiple specialties sheltered under the power umbrella. Fueled by the explosion in artificial intelligence use, the data center boom has increased demand for attorney experts in project finance, infrastructure, real estate, mergers and acquisitions, project development, regulatory compliance, and litigation.

The lateral market is extremely hot for lawyers in the data center space, with hiring firms drawing together interdisciplinary teams to face the complex challenges data centers present.
Data center construction will require $5 trillion in total investment by 2030, according to a JPMorgan Chase & Co. analysis.
The growing adoption of AI has caused energy usage to spike, going from approximately 60 terra-watt hours in 2014-2016 to 76 TWh by 2018, and 176 TWh in 2023.
A coalition of landowners challenged local government rezoning decisions that let the Digital Gateway project go forward on behalf of real estate acquisition entities serving hyperscale technology firms.
Trial judges voided the zoning decisions, ruling the public was given inadequate notice of the board of supervisors approval meetings.
In March, a state appellate panel affirmed the judges' ruling.

How Does This Affect You?

The surge in demand for data centers has introduced new challenges, including finding alternative solutions for power and water consumption. This shift means that lawyers and companies must navigate a more complex regulatory environment, with a greater emphasis on sustainability and community engagement. The court's ruling on the Digital Gateway project highlights the importance of public notice and community involvement in the development of data centers.

For Lawyers & Advocates

Lawyers specializing in project finance and infrastructure may wish to consider the increased demand for data centers and the corresponding need for sustainable energy solutions, as outlined in the National Environmental Policy Act (NEPA) and the Federal Power Act.
Real estate lawyers may find it useful to review the complex web of zoning regulations and community opposition to data center development, including compliance with the California Environmental Quality Act (CEQA) and the National Historic Preservation Act (NHPA).
Regulatory compliance lawyers may want to take into account the latest developments in data center regulation, including the use of renewable energy sources and water conservation measures, as required by the Clean Water Act (CWA) and the Energy Policy Act of 2005.
Litigators may find it useful to review the potential implications of disputes related to data center development, including challenges to zoning decisions and environmental impact assessments, under the Administrative Procedure Act (APA) and the Endangered Species Act (ESA).
Lawyers advising companies on data center development may consider the potential risks and benefits of investing in renewable energy sources and sustainable infrastructure, as encouraged by the Investment Tax Credit (ITC) and the Production Tax Credit (PTC).

For Law Students

The decision provides an opportunity to examine the intersection of energy production and environmental regulation, the impact of data center development on local ecosystems and communities, and the complexities of zoning and land use planning for data center development. The core legal doctrine is the concept of public notice and community involvement in the development of large-scale infrastructure projects, as established in cases such as Lucas v. South Carolina Coastal Council (1992) and Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc. (1984). Comparable cases include the Supreme Court's decisions in Tahoe-Sierra Preservation Council, Inc. v. Tahoe Regional Planning Agency (2002) and Lingle v. Chevron U.S.A., Inc. (2005), which highlight the importance of balancing economic development with environmental and community concerns.

For Businesses

Companies developing data centers may want to consider the potential risks and benefits of investing in renewable energy sources and sustainable infrastructure, as required by the Renewable Portfolio Standard (RPS) and the Greenhouse Gas Reduction Targets.
Technology companies may find it useful to review the complex regulatory environment surrounding data center development, including zoning regulations and environmental impact assessments, under the Federal Communications Commission (FCC) and the Environmental Protection Agency (EPA).
Real estate companies may wish to take into account the potential for community opposition to data center development and the importance of public notice and community involvement, as outlined in the Uniform Relocation Assistance and Real Property Acquisition Policies Act.
Companies may want to review the potential implications of regulatory changes and updates to environmental regulations, and may find it useful to stay up-to-date on the latest developments in data center regulation, including the proposed rules under the Clean Power Plan.

Key Takeaways

The court's ruling highlights the importance of public notice and community involvement in the development of large-scale infrastructure projects, as required by the National Environmental Policy Act (NEPA) and the Federal Power Act.
The practice consequence is that lawyers and companies must navigate a more complex regulatory environment, with a greater emphasis on sustainability and community engagement, as encouraged by the Investment Tax Credit (ITC) and the Production Tax Credit (PTC).
The enforcement consequence is that regulatory agencies will play a critical role in ensuring that data center development is sustainable and environmentally responsible, under the Clean Water Act (CWA) and the Energy Policy Act of 2005.
What to watch next is the development of new regulations and guidelines for data center development, including the use of renewable energy sources and water conservation measures, as proposed by the Federal Energy Regulatory Commission (FERC) and the Environmental Protection Agency (EPA).
General Counsels of technology companies may wish to review their company's data center development plans and ensure that they are in compliance with all relevant regulations and guidelines, before the next regulatory update, as required by the Sarbanes-Oxley Act and the Securities Exchange Act of 1934.

References