This week on IPWatchdog Unleashed, our host and the founder of IPWatchdog, Gene Quinn, speaks with Hilary Preston. A partner at Vinson & Elkins and co-head of the firm’s intellectual property and technology litigation practice, Preston discusses the rapidly expanding AI data center ecosystem and the complex technology, infrastructure, and legal risks emerging alongside it.
The conversation examines how power availability, grid capacity, cooling systems, on-site generation, and geographic location are shaping data center development. Quinn and Preston explore why these issues are becoming potential patent battlegrounds, how rights holders may target operators rather than technology suppliers, and why both hyperscaler and smaller, purpose-built facilities must account for IP risk across interconnected systems and vendors.
Preston also explains the importance of “innovation governance” in projects moving at unprecedented speed. The discussion addresses strategic choices between patent and trade secret protection, jointly developed technology, ownership rights, indemnification, public disclosures, and the need to identify and manage risk before construction begins. The episode also considers the emerging challenges surrounding AI-related patents, including patent eligibility under Section 101 and written description and enablement under Section 112, offering practical guidance for developers, investors, technology providers, and legal professionals navigating this rapidly evolving market.
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