Building “Islanded” Power for AI-scale Data Centers: Construction Risks and Practical Protections
AI-scale data centers increasingly rely on behind-the-meter, gas-fired generation to deliver fast, clean, and predictable power during critical compute windows—often in “islanded” configurations that can operate independently of the grid.
This CLE webinar distilled the construction risks we saw most often and the contractual tools that protected uptime. We covered delivery model choices (EPC vs. EPC M) and interface discipline across protection, controls, and commissioning; performance guarantees that went beyond nameplate to start/response times and point of common coupling power quality; schedule integrity under utility reviews and long-lead equipment; pragmatic operational technology security baselines aligned with OEM obligations; and rapid change-control protocols that kept crews moving when standards or OEM designs shifted.
We highlighted why contract architecture had to follow the buyer: Two gas plants, same hardware—totally different contract stack when the customer was the grid in one case and a hyperscaler in the other. We contrasted utility-facing obligations (interconnection, market participation, NERC/utility standards, tariff dependencies) and hyperscaler-facing priorities with practical guidance on aligning EPC scope, O&M, OEM warranties, and performance liquidated damages to each buyer's risk profile.
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Notice
Before proceeding, please note: If you are not a current client of Perkins Coie, please do not include any information in this e-mail that you or someone else considers to be of a confidential or secret nature. Perkins Coie has no duty to keep confidential any of the information you provide. Neither the transmission nor receipt of your information is considered a request for legal advice, securing or retaining a lawyer. An attorney-client relationship with Perkins Coie or any lawyer at Perkins Coie is not established until and unless Perkins Coie agrees to such a relationship as memorialized in a separate writing.