Data Centers Face Growing Environmental and Litigation Risks
The environmental regulatory and litigation landscape for data centers has shifted. In the past several weeks, states with significant existing or planned data center development have announced new requirements affecting environmental permitting, water use, backup generation, electricity demand, and local approvals. At the same time, environmental groups are increasing their litigation toolkits — primarily, through Clean Air Act citizen suits — to challenge data centers and the power generation supporting them.
Texas Rising: Texas’ Rise as a Premier Domicile
While Delaware has long been regarded as the gold standard for corporate domiciles, boasting a well-established body of corporate law and a highly specialized Court of Chancery, the State of Texas has rapidly been working to close the gap.[1] This momentum has been sustained by the State’s statutory framework, practiced judicial restraint, and numerous socioeconomic incentives that come with operating in Texas. (more…)
Third Party Claims to Divisive Mergers in Texas and Delaware
Delaware is widely recognized as the leading state for business incorporation, due largely to its comprehensive and well-established legal framework. Texas, however, was the first mover in one important area: divisive mergers. Divisive mergers are a statutory mechanism that allow businesses to divide into multiple entities and allocate assets and liabilities among them without, among other benefits, triggering contractual restrictions on assignment. They can facilitate restructurings, acquisitions, divestitures, or allocation of assets or liabilities, but must be approached carefully to avoid potential fraudulent claims and third-party challenges.
