Big Law Caught in AI vs. Utility Conflicts: California Brief

March 17, 2026, 2:03 PM UTC

Data Center Rush Poses Conflicts for Firms

Stargate AI data center in Abilene, Texas.
Stargate AI data center in Abilene, Texas.
Photographer: Kyle Grillot/Bloomberg via Getty Images

Law firms that advise both utilities and AI data center developers must navigate potential conflicts — and could be forced to pick a side, Eric Killelea reports.

Utilities are experiencing unprecedented demand from AI data centers. That creates revenue and opportunity, but it is also fueling concerns over the strained power grid, particularly in the data center hub of Texas.

Three of Texas’ biggest firms — Vinson & Elkins, Baker Botts, and Jackson Walker — are longtime advisers for large regulated utilities, while also taking on data center developers and hyperscalers as ...

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