The legal landscape surrounding digital infrastructure is never stagnant. As technology rapidly advances, so too does the regulatory environment, oftentimes weaving an elaborate web of rules and restrictions for industry stakeholders to navigate.
Saul Ewing LLP’s legal expertise spans a wide array of cases, from wireless facilities to data centers. Greg Rapisarda, Partner at Saul Ewing, helps clients traverse complex regulatory matters and operational challenges. The company has 18 offices with more than 450 attorneys and a team of 400 professional staff members, ready to assist.
Challenges with Local Jurisdictions
Rapisarda highlighted the recent shift from new builds to modifications of existing facilities and a rise in co-location and small cell opportunities. “Saul Ewing’s role has evolved to address these new demands,” explained Rapisarda, “Raw land builds from wireless providers have slowed, but third-party tower providers are stepping in to fill coverage gaps.”
One of the persistent challenges in the telecommunications sector is the bureaucratic red tape faced by infrastructure providers when dealing with local jurisdictions, Doug Sampson, Associate at Saul Ewing explained. “In the current economic climate, many of county staffs are seeing significant turnover and vacancies,” said Sampson, “which means staff members are often overworked and undereducated on issues related to wireless facilities.” This problem is further exacerbated by growing public concerns, especially about the health impacts of 5G technology.
“Public opposition creates delays,” Sampson shared. “In some areas, residents fear the health implications of new towers, even though the technology is safe. This leads to legal challenges and slows down necessary developments.” Saul Ewing’s attorneys have extensive experience in zoning and regulatory processes to help clients overcome these hurdles. “It’s pivotal to have experienced zoning attorneys who know how to communicate with, and sometimes educate, staff and boards for local jurisdictions,” he added.
Data Center Expansion in High-Demand Regions
Beyond wireless facilities, Saul Ewing is also deeply involved in the development of data centers, particularly in regions like Maryland and Virginia. The high demand for data storage and processing capacity, driven by the growth of Artificial Intelligence (AI) and cloud computing, has led to a surge in data center developments. Rapisarda highlighted a recent project in Frederick County, Maryland, where Saul Ewing helped facilitate local code amendments to accommodate new types of substations. “We helped amend the local code to create a new definition, ‘critical digital infrastructure substation,’ which was necessary to expand power capacity for growing data centers,” he explained.
Rapisarda also noted the firm’s work on a significant data center project in Loudoun County. “We’re doing more traditional real estate work there: subdivision, land condominiums, property owner agreements, and reciprocal easements related to power sharing,” he said. According to Rapisarda, the ability to manage both real estate and infrastructure challenges is a key differentiator for Saul Ewing in the digital infrastructure space.
Potential Power Solutions
Looking towards the future, Rapisarda discussed an innovative concept that could help meet the power demands of data centers: nuclear microreactors. While this technology is still in its infancy, Rapisarda believes it has significant potential. “The idea of small nuclear reactors scares people, but it could be a safe, efficient way to generate power for data centers,” he suggested. While legislative and public acceptance obstacles remain, Rapisarda sees microreactors as a possible solution to the growing energy demands of large-scale data operations.
As power capacity continues to be a bottleneck for data center development, particularly in regions with already stretched resources, the exploration of alternative power solutions like microreactors could become more relevant. “There’s a lot of work on the utility side right now throughout Maryland and Virginia to expand and upgrade power capacity,” Rapisarda said, hinting at the proactive measures necessary to accommodate the growing energy needs of data infrastructure.
Legal Impacts of Regulatory Changes
The telecommunications sector, like many others, is also affected by shifts in the broader regulatory landscape. Sampson addressed the recent Supreme Court ruling that struck down Chevron deference, a legal doctrine that gave federal agencies significant autonomy in interpreting statutes. “It’s going to invite more challenges,” Rapisarda said. “Without Chevron deference, federal agencies such as the FCC will likely face more court challenges, as courts themselves will play a larger role in interpreting regulations.”
While Sampson believes this shift could reduce some of the red tape that often slows infrastructure projects, he also cautions that it could increase litigation and delay the regulatory process. “I personally favor the removal of Chevron deference because it allows for less bureaucratic overreach, but at the same time, it could make the process more cumbersome by requiring more court involvement,” he explained. Rapisarda added that although the industry has not begun to feel the effects the Supreme Court’s decision yet, it’s coming in the next several years.
Guidelines at All Levels
Rapisarda foresees continued expansion of wireless facilities and data centers, driven by technological innovation, population growth and mobile data demand. “The providers who come up with the most innovative and least intrusive ways to deploy wireless technology will be at the forefront of infrastructure development over the next five to ten years,” Rapisarda predicted.
The increasing complexity of local regulations will continue to be a challenge for infrastructure projects, further emphasizing the critical role of legal expertise. “It isn’t enough just to have the backing of a major wireless carrier to get your project approved,” Sampson said. “The requirements, regulations, and public acceptance of projects can vary wildly from county to county, city to city, and even street to street.”
With an upcoming election, economic uncertainty, the proliferation of AI and even new network architecture like Open RAN, there are a lot of question marks ahead. That’s why, according to Rapisarda, Saul Ewing’s in-depth understanding of guidelines at every level – local, state, and federal — will be increasingly invaluable.
For more information, visit https://www.saul.com/capabilities/industry/telecommunications-digital-infrastructure.
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