Harriet Hayes talks hyperscalers, energy requirements and why trainees should be vocal, be engaged and ask questions
“New data centres are being developed to provide computing capacity and processing for AI, which creates a whole new demand and much more challenging projects,” says Harriet Hayes, a transactional construction lawyer at Pinsent Masons. It is, she says, “an inflection point for the industry”. Legal Cheek Careers sits down with Harriet to talk data centre deals, cross-border contracts and what makes a trainee stand out.
Harriet studied law at Durham University and completed the LPC at the University of Law (the “College of Law” as it was known then). Her first legal role was in-house, as a legal intern and then a paralegal at Porsche Cars Great Britain, before she applied for a training contract at Pinsent Masons. “I’ve not left,” she says. “I’ve been here ever since, and that was a number of years ago now!”
That first role shaped what Harriet wanted from a firm. “I started my career in-house, so I wanted to work somewhere that would operate in a similar way,” she explains. “The sector focus that Pinsent Masons had really appealed to me.” 11 years on, the appeal has not faded. “I like the quality of work that I get to be involved in, the projects we work on, and the fact that my work is tangible,” Harriet says. “I can point to things that I’ve contributed to and built rather than just numbers on a page. It is also the people I get to work with; genuinely, it’s a nice place to work.”
So what actually happens when advising on a data centre deal? “When you have a client developing a data centre, they are not usually building it for themselves,” Harriet explains. Instead, there will typically be a customer, which could be a hyperscaler looking for more computing capacity. The developer enters into contracts for the construction and operation of the data centre, while the customer may well lease it or buy it from them. On top of making sure the build achieves the customer’s requirements, these projects are often funded, so they need to be bankable too. “There are all these competing things that need to be balanced together in order for a data centre development to work.”
Harriet advises clients on entering into contracts for the construction of the data centre itself, typically acting for developers. Because funders are often involved, their requirements must be factored in during negotiations, for example by making sure the performance security package (bonds, collateral warranties, parent company guarantees etc.) is robust enough, which often means working alongside the firm’s banking team.
What sets these deals apart from more typical real estate or corporate transactions? “Energy is a really big one,” says Harriet, “The actual construction of a data centre is only part of the story. Data centres have massive energy requirements, so connection to the grid is massively important.” That is an area the firm’s energy team specialises in. “The customer’s specific requirements are also particularly interesting,” she adds, explaining that the customer’s needs must be accounted for throughout to ensure the finished project will actually achieve them, whether from a design or technical capability perspective.
Cross-border projects add a further layer. Where a contract is governed by English law, it typically runs very similarly to a UK project, though certain elements need specific consideration. On construction projects, for instance, collateral warranties are typically provided by a subcontractor to an employer to create a direct contractual link. “However, in Finland, for example, collateral warranties are not used, so you have to look at alternatives,” Harriet explains. If English law does not govern the contract, local lawyers are brought in, either from Pinsent Masons’ own offices or from local firms in other jurisdictions.
Looking to the future, energy remains central. “The energy solution is incredibly important to data centres,” Harriet says, and it must be balanced against the country’s other energy needs and the global drive to reduce carbon emissions, while “AI itself may well be subject to further regulation in the future. It is a moving feast!.” Asked whether this makes commercial awareness even more important, Harriet agrees: “it is about understanding the commercial environment in which our clients operate.”
As for what’s next, “I expect to be doing a lot more data centre work!” Harriet says. “the sheer speed at which we are looking to build these data centres is really exciting.”
So where do trainees fit in? “Trainees are really important members of our team, and their input on any kind of deal or project is vital,” says Harriet. With a lot of multi-party input, these deals need plenty of coordination and management of people. She tries to involve trainees in drafting documents (which trainees “always want to do”) and attending client meetings, “because early client exposure is really good for trainees”. Trainees also take on tasks such as managing the signing process.
For students, one of the biggest skills to start developing now is managing people and deadlines. “As a trainee, that is a role you can take on early,” Harriet says, by being the person who coordinates and keeps things moving. Good attention to detail is “obviously vital”. “As a wider point, it is important to stay up to date on what is happening in the world by reading around topics.”
Asked what she wishes she had known when applying, Harriet stresses the importance of knowing why you want to work somewhere. “Whether it is a specific team or a matter that caught your interest, having a genuine reason for applying to a specific firm will help you stand out,” she says. Acknowledging that this is hard without experience, Harriet suggests attending events such as training sessions as a good place to start. “It gives you something to talk about and differentiates you in an interview.”
And once you are through the door? “For me, the most important thing is being interested and asking questions to demonstrate that you want to learn,” Harriet says. “As a trainee, you are not going to know everything, and that is absolutely fine.” Asking questions shows supervisors that you are trying to develop and really want to contribute. “Be vocal, be engaged, and ask questions.” It is a mantra that has stuck with her. “Someone once said to me, ‘Every day is a school day,’ and I still think that now.”
Harriet Hayes will be speaking at ‘The anatomy of a data centre development — with Pinsent Masons’, taking place virtually on Monday 12 October from 4pm to 6pm. Secure your place now.
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