Construction Dive Interviews Cotney on Data Center Contracts Amidst Industry Boom

Adams & Reese Construction Team Leader Trent Cotney was interviewed by Construction Dive in the article, “For Data Center Contracts, It’s All About the Fine Print.”

Cotney discusses how contractors can protect themselves in a high demand, fast-track environment amidst a boom in data center construction. For example, Apple is investing at least $20 billion in two Pennsylvania data centers. Separately, CoreWeave is building a $6 billion facility in the state with a Turner Construction and Wohlsen Construction joint venture.

“This is where the money is at right now,” Cotney told Construction Dive. “There is a lot of money being put out both by government and private industry to move this forward light speed. So, ton of profit, but also a lot of risk and I think you need to assess it in your contract.”

Cotney said most data centers use engineering, procurement, and construction contracts or turnkey models, where one contractor designs and builds the facility. While that structure simplifies ownership, it creates a heavier lift for the contractor. “What makes it more complicated is the amount of regulation that goes into a lot of these contracts,” said Cotney. “There is adherence to fire codes, NFPA (National Fire Protection Association), NEC (National Electrical Code), permitting related issues, all those types of things.”

Fast-track delivery has also become the industry norm, but speed magnifies some risks. The rush to build swiftly “puts a big burden on the contractor,” said Cotney. “We do a lot of OSHA defense for construction and general industry, and unfortunately, we’ve had some incidents on these types of projects. Anytime you’re dealing with high voltage, this level of fast track, it requires operational excellence. Navigating safety in this type of environment is absolutely critical.”

To protect themselves due to tariff-related increases and material shipping delays, Cotney said many contractors insert price acceleration provisions that allow for contract adjustments if a material rises more than 5%, or they may use tariff-specific clauses tied to U.S. Customs data. Others pursue strategies such as pre-purchasing or negotiating direct purchase orders where the owner buys the material outright. “The end result is where you’re basically going to the end user, the owner or developer, and saying here is the tariff hit. Here is the direct impact of that. Here’s a change order reflected on that,” Cotney told Construction Dive. “And you have a contractual basis to do that.”

Labor is another pain point in contract talks as data center construction projects require skilled electricians and mechanical workers, many of whom may hold temporary immigration status. “A lot of the workforce that I see being used on these data center projects are under H-2B or temporary protective status, depending on what’s being done,” he said. “Immigration and workforce is obviously a big topic for all of construction right now.”

At Adams & Reese, Cotney is a leading member of one of the largest construction teams in the country with more than 100 attorneys licensed to practice construction law across more than 35 states. A Partner in the Adams & Reese Tampa office, Cotney represents construction and infrastructure clients, including GCs, subcontractors, suppliers, manufacturers, architects, engineers, roofers, developers, and other professionals.

Cotney is a board-certified construction lawyer licensed in eight states and Washington, DC. Cotney is an EU arbitrator for construction-related disputes. He is also experienced in construction litigation and arbitration, including OSHA defense, lien law, bond law, bid protests, and construction document review and drafting. 

Cotney serves as general counsel for more than 10 trade associations and organizations, including the National Roofing Contractors Association, Florida Roofing & Sheet Metal Association, National Slate Association, Roofing Technology Think Tank, Western States Roofing Contractors Association and several other industry associations. Cotney has published more than 1,000 articles in 100 different local, regional, and national publications.