You’d
be
forgiven
for
wondering
if
Charlotte
is
cursed.
Despite
being
America’s
ninth-largest
city,
the
last
time
we
put
a
full-time
law
school
in
Queen
City,
we
needed
to
set
up
a
food
bank
to
support
the
students.
Charlotte
School
of
Law,
an
InfiLaw-run,
for-profit
law
school,
collapsed
in
2017
amidst
probation,
bar
passage
carnage,
and
federal
financial
aid
chaos.
Back
in
2023,
when
Elon
University
first
started
making
noise
about
expanding
its
law
school
presence
in
Charlotte,
we
had
some
reservations.
While
Elon
boasts
better
academic
credentials
than
the
for-profit
InfiLaw
system,
its
main
campus
had
also
struggled
with
epically
poor
bar
passage
rates
not
too
many
years
earlier,
and
we
wondered
whether
a
new
program
in
Charlotte
just
shuffled
the
deck,
replacing
one
troubled
school
with
another.
By
the
way,
when
we
say
“epically
poor,”
we
mean
Elon’s
first-time
bar
passage
rate
on
the
North
Carolina
bar
exam
was…
0.00
percent.
It
was
around
46
percent
when
adding
other
jurisdictions.
But
a
lot
has
happened
since
then.
Elon’s
employment
figures
have
steadily
risen,
with
nearly
87
percent
of
the
graduating
class
in
long-term,
full-time
jobs,
and
the
underemployment
score
—
where
law
schools
often
get
away
with
murder
—
is
a
mere
2.9
percent.
The
bar
passage
rate
improved
too,
and
its
two-year
passage
rate
is
consistently
north
of
the
75
percent
threshold
required
for
accreditation.
The
university
has
put
together
a
decent
resume
for
law
school
administration.
With
Elon
expected
to
close
its
merger
with
Queens
University
of
Charlotte,
transitioning
to
a
full-time
law
school
provider
became
a
plausible
option.
University
President
Connie
Ledoux
Book
explained
the
decision:
“The
need
for
graduate
and
professional
programs
in
one
of
our
nation’s
fastest-growing
cities
makes
the
launch
of
a
full-time
law
program
a
natural
next
step
for
Elon
Law.”
Instead,
Elon
is
approaching
Charlotte
as
an
opportunity
for
innovation.
Rather
than
just
add
a
new
campus
to
the
Greensboro
operation,
Elon
is
attempting
a
2.5-year
curriculum,
to
get
students
out
into
the
workforce
faster
and
presumably
more
cheaply.
Charlotte
is
the
largest
U.S.
city
without
a
law
school.
Its
metro
population
is
projected
to
grow
21
percent
between
2020
and
2034,
and
the
city
faces
documented
shortages
of
lawyers.
Cities
can
import
lawyers
from
law
schools
elsewhere,
but
building
a
local
lawyer
population
is
easiest
if
the
new
attorneys
don’t
have
to
move.
Does
that
mean
everything
will
go
smoothly?
Of
course
not.
Bar
passage
rates
could
slip.
The
market
could
shift.
And,
of
course,
the
curse
of
the
city
of
Charlotte
could
remanifest
and
the
new
campus
elevators
could
open
and
spill
forth
a
wave
of
blood
like
that
hotel
from
The
Shining.
But,
for
now,
we’re
wishing
the
city
luck
on
its
return
to
legal
education.
The
lateral
partner
market
has
gotten
more
and
more
active,
and
we
always
felt
it
was
a
matter
of
time
before
it
reached
the
very
elite
tier
of
firms.
The
gloves
are
off
and
virtually
no
one
is
untouchable
anymore.
People
should
get
used
to
seeing
that
at
firms
that
historically
lost
very
few
partners.
— Jeffrey
Lowe,
market
president
of
Washington
DC
for
legal
recruitment
firm
CenterPeak,
in
comments
given
to
Bloomberg,
concerning
the
recent
wave
of
partner
departures
from
Cravath,
a
firm
long
known
to
hold
onto
attorney
talent
from
the
cradle
to
the
grave.
As
we
noted
in
2024,
it’s
no
longer
a
rarity
for
lawyers
to
leave
the
firm,
and
the
trend
is
only
seems
to
be
increasing.
“Cravath
doesn’t
really
support
stars
in
the
same
way
that
other
law
firms
might,”
New
York
legal
recruiter
Alisa
Levin
said,
“and
it’s
an
opportunity
to
shine
bright
elsewhere.”
Staci
Zaretsky is
the
managing
editor
of
Above
the
Law,
where
she’s
worked
since
2011.
She’d
love
to
hear
from
you,
so
please
feel
free
to email her
with
any
tips,
questions,
comments,
or
critiques.
You
can
follow
her
on Bluesky, X/Twitter,
and Threads, or
connect
with
her
on LinkedIn.
The
announcement
confirms
a
major
shift
in
the
country’s
revenue
strategy,
directly
affecting
consumer
spending,
business
operations,
and
foreign
investments.
The
measures
include
an
increased
standard
Value
Added
Tax
(VAT)
rate,
the
introduction
of
a
digital
services
tax,
new
mineral
export
levies,
and
significantly
higher
taxes
on
gambling.
New
Digital
And
Consumption
Taxes
Take
Effect
A
cornerstone
of
the
new
tax
regime
is
the
introduction
of
a
15%
Digital
Services
Withholding
Tax
(DSWT).
This
tax
targets
payments
made
to
foreign
digital
platforms
like
Netflix,
Spotify,
Amazon
Prime,
Starlink,
and
ride-hailing
apps
such
as
Bolt
and
InDrive.
The
point
of
the
tax,
the
government
has
argued,
is
that
offshore
digital
platforms
allow
companies
to
supply
services
directly
to
domestic
users
without
establishing
a
physical
presence
in
the
country.
Local
banks
and
payment
processors
are
responsible
for
collecting
the
tax
at
the
point
of
transaction.
For
example,
Stanbic
Bank
Zimbabwe
informed
its
customers
via
text
message
that
the
15%
withholding
tax
on
international
internet
and
card
payments
was
active
from
the
start
of
the
year.
Alongside
this,
the
standard
VAT
rate
has
been
increased
from
15%
to
15.5%.
The
government
has
also
removed
VAT
zero-rating
for
tourist
facilities,
accommodation
for
non-residents,
and
hunting
safaris,
making
visits
to
the
country
more
expensive
for
foreign
tourists.
Mining
Exports
And
Gambling
Face
Sharp
Hikes
The
mining
sector,
a
critical
pillar
of
the
national
economy,
is
now
subject
to
heavier
fiscal
burdens.
The
government
has
implemented
a
10%
export
tax
on
lithium
ore,
antimony,
and
unbeneficiated
chrome,
alongside
a
revised
tax
on
black
granite.
A
separate,
new
3%
levy
also
applies
to
sales
and
exports
of
coal,
lithium,
black
granite,
quarry
stone,
and
dimensional
stone.
Simultaneously,
the
gaming
industry
is
confronting
a
drastically
increased
tax
load.
A
new
gambling
tax
regime
has
significantly
raised
rates.
The
2026
gambling
tax
increases
bettors’
withholding
on
winnings
from
10
per
cent
to
25
per
cent,
while
operators’
gross
takings
tax
jumps
from
3
per
cent
to
20
per
cent.
Operators,
including
sports
betting
firms
and
casinos,
were
required
to
submit
their
first
returns
for
this
new
regime
by
January
5,
2026,
with
payments
due
by
January
10.
Property
Taxes
Aimed
At
Formalising
The
Market
The
tax
changes
extend
to
the
property
and
rental
market,
aiming
to
close
loopholes
and
capture
informal
revenue.
Authorities
have
introduced
a
special
capital
gains
tax
on
the
disposal
of
shares
in
companies
whose
principal
asset
is
land.
This
targets
transactions
designed
to
avoid
standard
property
transfer
duties.
Furthermore,
landlords
who
rent
out
business
premises
now
face
a
Presumptive
Rental
Income
Tax
of
15%,
a
measure
intended
to
formalise
a
segment
of
the
rental
economy
that
often
operates
informally.
Summary
of
New
Tax
Measures
in
Zimbabwe
(Effective
from
January
2026)
Millions
scattered
across
Johannesburg,
London,
Sydney,
Toronto,
New
York
and
beyond
have
not
abandoned
their
homeland;
instead,
they
have
sustained
it
By
the
late
1990s,
the
meltdown
was
complete
with
industries
shuttered,
agriculture
collapsed,
hyperinflation
devoured
savings
and
repression
drove
citizens
into
silence
or
exile.
What
appeared
then
as
a
haemorrhage
of
talent
and
hope,
a
mass
flight
of
Zimbabweans
into
the
diaspora,
was
framed
by
the
ruling
elite
as
betrayal,
yet
history
has
turned
that
narrative
on
its
head.
The
very
exodus
that
symbolised
collapse
has
become
Zimbabwe’s
salvation.
Millions
scattered
across
Johannesburg,
London,
Sydney,
Toronto,
New
York
and
beyond
have
not
abandoned
their
homeland;
instead,
they
have
sustained
it.
What
began
as
a
survival
migration
has
evolved
into
a
parallel
system
of
governance.
Once
dismissed
as
economic
refugees,
the
diaspora
now
functions
as
Zimbabwe’s
shadow
state,
a
government
without
offices
or
motorcades,
yet
one
that
funds
education,
healthcare,
housing
and
daily
survival.
This
is
not
charity
but
governance
by
necessity.
It
is
the
quiet
but
relentless
assertion
of
relevance
by
a
constituency
that
has
earned
its
place
in
the
nation’s
political,
social
and
economic
architecture.
While
the
official
government
rewards
sycophants
and
entertainers
with
cash
handouts
and
luxury
cars
in
a
country
where
over
80%
of
citizens
are
unemployed,
the
diaspora
builds
schools,
pays
hospital
bills
and
keeps
households
afloat.
The
contrast
is
obscene
because
those
who
sustain
Zimbabwe
are
denied
recognition,
while
those
who
steer
it
towards
collapse
are
celebrated.
The
diaspora
is
no
longer
peripheral;
instead,
it
has
proven
itself
as
the
lifeline
of
a
broken
state,
the
invisible
scaffolding
holding
up
a
collapsing
edifice
and
to
ignore
this
reality
is
to
deny
the
truth.
To
continue
punishing
the
Zimbabwean
diaspora
is
to
sabotage
national
survival.
The
rise
of
the
shadow
state
Zimbabwe
today
lives
under
two
governments:
the
official
state,
bloated
with
sycophancy
and
the
shadow
state
of
the
diaspora,
whose
authority
is
earned
not
through
decrees
but
through
survival.
From
the
early
2000s,
when
remittances
trickled
in
at
a
few
million
dollars,
to
2025,
when
they
surged
to
US$2.4
billion,
the
diaspora
has
transformed
itself
from
scattered
exiles
into
the
nation’s
most
reliable
institution.
This
is
governance
in
action
and
power
exercised
by
necessity.
Diasporans
have
built
schools
where
the
state
abandoned
classrooms,
funded
clinics
where
hospitals
ran
out
of
medicine
and
invested
in
housing
where
policy
left
citizens
homeless.
They
have
created
an
informal
welfare
system
that
sustains
millions,
proving
exile
did
not
sever
their
bond
to
Zimbabwe
but
deepened
it.
Yet,
grotesquely,
the
official
government
lavishes
cash
and
cars
on
entertainers,
agents
of
destruction,
while
ignoring
those
who
keep
Zimbabwe
alive.
This
is
the
rise
of
Zimbabwe’s
shadow
state:
a
government
without
ministries
or
propaganda
machines,
yet
one
that
governs
through
sacrifice
and
commands
legitimacy
through
results.
To
ignore
this
reality
is
to
deny
the
truth.
To
punish
the
diaspora
is
to
sabotage
survival.
Why
Zimbabweans
left
Zimbabwe’s
mass
exodus
after
2000
was
not
wanderlust.
It
was
forced
migration,
a
desperate
flight
from
a
nation
that
had
collapsed
under
political
arrogance
and
economic
vandalism.
Land
seizures
and
violence
destroyed
agriculture
overnight
with
hyperinflation,
peaking
at
79
billion
per
cent
in
2008,
which
obliterated
wages,
savings
and
pensions.
Factories
closed,
unemployment
soared
and
poverty
became
destiny.
Health
and
education
systems
crumbled,
forcing
professionals
abroad.
Political
repression
silenced
dissent,
driving
activists
and
journalists
into
exile.
This
exodus
was
the
culmination
of
two
decades
of
mismanagement
under
Robert
Mugabe.
Between
1980
and
2000,
Zimbabwe
squandered
its
inheritance
of
a
strong
economy
through
corruption,
failed
structural
adjustment,
reckless
debt,
military
overspending
and
land
policy
uncertainty.
The
liberation
movement
mutated
into
a
patronage
machine,
rewarding
loyalty
while
eroding
institutions
and
investor
confidence.
Migration
became
both
a
survival
and
a
search
for
dignity.
Families
scattered
not
because
they
wanted
to
abandon
Zimbabwe
but
because
Zimbabwe
had
abandoned
them.
The
exodus
was
the
ultimate
indictment
of
a
liberation
movement
that
lost
its
moral
compass,
a
regime
that
chose
repression
over
reform
and
an
elite
that
sacrificed
prosperity
to
preserve
power.
The
Diaspora
as
Zimbabwe’s
saviour
Zimbabwe
survived
not
because
of
the
state
alone
but
because
of
its
exiles.
The
diaspora
became
Zimbabwe’s
unofficial
government,
sustaining
the
country
through
channels
more
tangible
than
any
ministry.
Economically,
remittances
eclipsed
every
other
source
of
foreign
currency,
stabilising
households
and
propping
up
a
fragile
economy.
Diasporans
poured
capital
into
real
estate,
small
businesses
and
infrastructure,
importing
innovative
models
and
technologies
that
the
state
is
too
compromised
to
contemplate.
In
knowledge
and
skills,
the
diaspora
became
Zimbabwe’s
intellectual
reservoir.
Doctors,
engineers,
IT
specialists
and
academics
collaborate
remotely
or
return
through
short-term
programs,
training
professionals,
raising
standards
and
introducing
global
best
practices.
They
are
custodians
of
modernity,
injecting
expertise
squandered
by
leaders.
Globally,
diaspora
communities
connect
Zimbabwe
to
donors,
investors,
and
markets,
lobby
for
fairer
trade
and
visa
reforms
and
act
as
informal
ambassadors
reshaping
Zimbabwe’s
image
abroad,
an
image
that
has
been
destroyed
by
successive
political
regimes.
Socially,
they
fund
schools,
clinics
and
rural
projects,
preserve
identity
and
inject
fresh
perspectives
on
democracy
and
justice.
In
short,
the
diaspora
has
become
Zimbabwe’s
saviour,
governing
through
necessity
while
the
official
state
indulges
in
spectacle.
Despite
this
monumental
contribution,
the
diaspora
is
treated
with
contempt.
They
are
denied
the
right
to
vote,
excluded
from
shaping
the
destiny
of
the
nation
they
bankroll,
and
forced
to
pay
punitive
fees
at
ports
of
entry.
They
are
branded
outsiders
even
as
they
function
as
insiders.
This
is
betrayal
of
the
highest
order,
where
those
who
feed
the
nation
are
starved
of
recognition,
while
looters
are
rewarded
with
privilege.
Denying
legitimacy
to
a
constituency
that
has
earned
it
through
sacrifice
is
not
only
morally
bankrupt
but
politically
suicidal.
Institutionalising
Diaspora
power
The
era
of
token
gestures
is
over
and
Zimbabwe
can
no
longer
afford
to
treat
its
diaspora
as
a
peripheral
community
when,
in
truth,
they
have
become
the
nation’s
most
reliable
constituency.
Their
billions
in
remittances,
their
investments,
their
skills
and
their
global
networks
have
earned
them
not
charity
but
institutional
power.
The
time
has
come
to
embed
diaspora
influence
into
the
very
architecture
of
policymaking.
This
demands
concrete
measures:
the
guarantee
of
voting
rights
and
the
upholding
of
dual
citizenship
without
bureaucratic
sabotage;
the
creation
of
diaspora
advisory
councils
or
even
parliamentary
representation;
the
introduction
of
diaspora
bonds,
tax
breaks,
and
secure
remittance
channels;
the
expansion
of
banking
products
and
pension
portability;
the
facilitation
of
return
programs
and
digital
collaboration
platforms;
the
establishment
of
a
Diaspora
Day
and
national
awards
to
honour
achievers;
and,
above
all,
the
operationalisation
of
the
2016
National
Diaspora
Policy
with
timelines,
accountability,
and
teeth.
Anything
less
is
betrayal.
To
deny
the
diaspora
its
rightful
place
is
to
sabotage
Zimbabwe’s
survival.
Across
Africa,
the
evidence
is
overwhelming.
Nigeria’s
remittances
rival
oil
revenues
as
a
stabilising
force.
Ghana
has
institutionalised
diaspora
bonds
and
investment
frameworks
that
channel
billions
into
development.
Somalia,
despite
state
fragility,
survives
because
its
diaspora
remits
more
than
any
aid
programme.
Egypt
treats
diaspora
contributions
as
a
cornerstone
of
its
national
budget.
These
nations
recognise
what
Zimbabwe
stubbornly
refuses
to
admit:
the
diaspora
is
not
a
burden
but
an
asset,
a
constituency
whose
influence
must
be
integrated
into
the
national
architecture
of
power.
Zimbabwe’s
diaspora
has
already
proven
its
indispensability.
It
has
saved
the
nation
once,
sustaining
households,
funding
education
and
keeping
healthcare
alive.
Its
role
must
now
be
elevated
from
informal
survival
to
formal
governance.
The
remittance
corridors
of
Johannesburg,
London,
New
York,
and
Sydney
are
not
merely
pipelines
of
cash;
they
are
arteries
of
legitimacy,
lifelines
of
renewal
and
engines
of
transformation.
The
Future
Africa’s
youth,
scattered
across
the
globe,
are
the
vanguard
of
a
digitally
powered
renewal.
They
will
not
be
shackled
by
liberation-era
failures.
Armed
with
technology,
networks
and
ideas,
they
will
drive
innovation,
democracy,
and
growth.
To
deny
them
recognition
is
to
deny
Africa’s
future.
Zimbabwe
must
honour,
institutionalise
and
integrate
its
diaspora
as
a
full
partner
in
rebuilding
the
nation.
Anything
less
is
betrayal.
Anything
less
is
sabotage.
The
diaspora
is
not
waiting
for
permission;
it
is
already
governing.
The
choice
is
stark:
embrace
the
diaspora
as
the
engine
of
renewal
or
condemn
Zimbabwe
to
perpetual
collapse.
Registered
farmers
declined
19.3%
to
101,443,
yet
planted
area
increased
21.7%
to
113,536
hectares,
suggesting
rising
productivity
and
capital
intensity.
One
such
example
of
progress,
according
to
the
TIMB,
is
the
irrigated
planted
area
increasing
to
24,000
hectares
this
season,
up
from
19,700
hectares
last
season.
Contract
farming
continues
to
dominate,
accounting
for
about
75.6%
of
planted
area,
though
industry
observers
note
that
the
15%
share
of
self-
or
bank-financed
growers
offers
renewed
support
for
Zimbabwe’s
traditional
auction
system.
Output
is
projected
to
climb
to
400
million
kg
this
year
from
354
million
kg
last
season,
reinforcing
tobacco’s
position
as
Zimbabwe’s
largest
agricultural
export
and
second-biggest
foreign
currency
earner
after
gold.
Export
earnings
reached
$1.4
billion
by
mid-December
2025,
down
slightly
year
on
year,
as
weaker
demand
from
traditional
Asian
markets—particularly
China—was
offset
by
strong
growth
in
Europe
and
steady
gains
within
Africa.
The
European
Union
stood
out,
with
export
earnings
surging
64.5%
to
$169.6
million,
reflecting
rising
demand
for
Zimbabwe’s
flue-cured
Virginia
leaf,
while
the
Far
East
remains
the
largest
market,
accounting
for
60%
of
total
export
value
despite
a
14%
decline.
Another
virtual
Vigil
today
continues
our
protest
against
the
human
rights
abuse
and
lack
of
democracy
in
Zimbabwe.
Events
and
Notices:
Next
Vigil
meeting
outside
the
Zimbabwe
Embassy.
Saturday
17th
January
2026
from
2
–
5
pm.
We
meet
on
the
first
and
third
Saturdays
of
every
month.
On
other
Saturdays
the
virtual
Vigil
will
run.
The
Restoration
of
Human
Rights
in
Zimbabwe
(ROHR)
is
the
Vigil’s
partner
organisation
based
in
Zimbabwe.
ROHR
grew
out
of
the
need
for
the
Vigil
to
have
an
organisation
on
the
ground
in
Zimbabwe
which
reflected
the
Vigil’s
mission
statement
in
a
practical
way.
ROHR
in
the
UK
actively
fundraises
through
membership
subscriptions,
events,
sales
etc
to
support
the
activities
of
ROHR
in
Zimbabwe.
The
Vigil’s
book
‘Zimbabwe
Emergency’
is
based
on
our
weekly
diaries.
It
records
how
events
in
Zimbabwe
have
unfolded
as
seen
by
the
diaspora
in
the
UK.
It
chronicles
the
economic
disintegration,
violence,
growing
oppression
and
political
manoeuvring
–
and
the
tragic
human
cost
involved.
It
is
available
at
the
Vigil.
All
proceeds
go
to
the
Vigil
and
our
sister
organisation
the
Restoration
of
Human
Rights
in
Zimbabwe’s
work
in
Zimbabwe.
The
book
is
also
available
from
Amazon.
Facebook
pages:
Vigil
:
https
://www.facebook.com/zimbabwevigil
The
Vigil,
outside
the
Zimbabwe
Embassy,
429
Strand,
London
meets
regularly
on
Saturdays
from
14.00
to
17.00
to
protest
against
gross
violations
of
human
rights
in
Zimbabwe.
The
Vigil
which
started
in
October
2002
will
continue
until
internationally-monitored,
free
and
fair
elections
are
held
in
Zimbabwe.
This
exceptional
performance
marks
a
historic
milestone
for
The
Boma,
reflecting
over
30
years
of
resilience,
innovation,
and
an
unwavering
commitment
to
delivering
an
authentic
and
memorable
Zimbabwean
cultural
experience.
While
previous
record
months
were
achieved
in
2023
and
2024,
the
numbers
in
2025
were
unprecedented
in
the
restaurant’s
history.
In
total,
The
Boma
hosted
over
80,404
dinner
guests
during
the
year.
That’s
a
remarkable
average
of
220
covers
every
night
for
365
days.
The
record
year
was
driven
by
the
collective
effort
and
passion
of
The
Boma
team,
supported
by
strong
leadership
and
a
renewed
energy
underpinned
by
several
enhancements
introduced
in
2024
and
2025.
These
include
striking
new
staff
uniforms,
enhanced
entertainment
elements
that
further
elevate
the
experience,
and
thoughtful
additions
to
the
menu,
all
of
which
have
resonated
strongly
with
guests
and
reinforced
The
Boma’s
status
as
a
Victoria
Falls
“must-do”
experience
for
both
first-time
and
repeat
visitors
to
the
destination.
Commenting
on
the
achievement,
Africa
Albida
Tourism
Managing
Director
Nigel
Frost
said:
“This
record-breaking
year
is
a
remarkable
accomplishment
and
a
testament
to
the
dedication,
creativity,
and
hard
work
of
the
entire
Boma
team,
who
put
in
an
outstanding
effort
and
consistently
delivered
an
experience
that
continues
to
delight
guests
from
around
the
world.
We
are
also
deeply
appreciative
of
the
continued
support
from
our
travel
trade
partners,
corporate
clients,
government
institutions,
and
the
many
private
individuals
who
choose
to
book
with
us.
Their
confidence
in
The
Boma
has
been
instrumental
in
achieving
this
milestone. The
Boma’s
success
in
2025
reflects
not
only
resilience
but
a
shared
commitment
to
excellence
and
innovation
that
has
defined
this
incredible
restaurant
since
1992.”
As
The
Boma
–
Dinner
&
Drum
Show
looks
ahead,
the
team
is
focused
on
building
on
this
momentum
and
continuing
to
enhance
the
guest
experience
while
staying
true
to
the
cultural
heritage
that
has
made
The
Boma
a
key
feature
of
Victoria
Falls
for
more
than
30
years.
The
Boma
–
Dinner
&
Drum
Show
is
part
of
the
Victoria
Falls
Safari
Collection,
which
is
operated
by
the
Africa
Albida
Tourism
hospitality
group.
The
collection
also
incorporates
the
flagship
Victoria
Falls
Safari
Lodge,
the
premium
20-room
Victoria
Falls
Safari
Club,
the
spacious
Victoria
Falls
Safari
Suites,
the
family-friendly
Lokuthula
Lodges,
the
tranquil
Victoria
Falls
Safari
Spa,
and
Queen
Nandi
Place
(a
state-of-the-art
MICE
facility
catering
to
upmarket
events),
all
located
on
the
Victoria
Falls
Safari
Lodge
estate,
just
4km
from
the
Victoria
Falls.
There’s an
adage when
trying to
unravel
a corporate mystery:
follow
the
money.
And
when
you
start
following
the
money
in
connection
with
the
AI
boom,
you
can
get
a
sense of
the
rumblings
of
an erupting volcano.
Lenders
and
investors are
starting
to
get
nervous, which
could jeopardize
planned funding.
We
have
written
before
about
the
risk
that current power
and
data
center infrastructure
can’t
support the
continued
exponential
development
of
AI
tools,
the
fact
that
the cost
of
verifying
AI
outputs is exceeding the savings,
and
the resulting
erosion
of
trust in
historic
processes
and
workflows.
Financial
Risk
But
there
is
another
perhaps
more
fundamental
risk
that
may cause the volcano eruption
we
have
been discussing.
Thus
far,
the
focus
has
been
on building mega
data
centers
needed
for
AI
to
work.
These
data
centers
are
expensive
to
build
and
get
permitted.
They
take five
to
seven
years
to
build
before
the
power
can
even
be
turned
on.
And
the
power
and
energy
capacity
needed
to
make
these existing and contemplated centers doesn’t exist. The
power
plants
needed
to
supply
that
capacity
have to
get regulatory
approval
and
be
built.
That
too
takes
time.
Not
only
does building the
capacity
and
data
centers
take
time,
it
takes
money.
It
requires
lots
of
money.
That
money
can
come
from investors, or it
can
come
from
lenders.
But
because
these
projects
are
long-term
investments
and
payoffs,
the
return
won’t
come
for
years.
So anything that
happens
which
makes
those
long-term returns
riskier
than
originally
thought
is
a
problem.
If
the infrastructure
and
power
aren’t
there
to
support
the demand
for
AI,
that long-term return is jeopardized, and
they
get
nervous.
If
something
happens,
say
flood
or
hurricane,
that
delays
the
completion
of
the
project
and
the
return,
they
get
nervous.
And
when
investors
and
lenders
get
nervous,
they
begin
looking
for
options
like
calling
the
loans
or
dumping
their
investments.
When
that
happens,
the
stock
value
of
the entities goes
down.
The
investors
in the
entities developing
the
AI
platforms
and
programs
then also get
nervous
and
begin
to
pull
back.
The infrastructure
challenges create
a
cascading
financial
risk
that compounds
the
angst. It’s
a
vicious
circle.
At
some
point,
the
projects
themselves
get
jeopardized. That
reduces demand,
reduces infrastructure building, and
the
whole
house
of
cards
begins
to
fall. It’s akin
to building
roads
(or
as
discussed
below,
railroads) without
knowing
how
much
traffic
will
use them.
If
the
traffic doesn’t materialize, you’re left
with expensive and underutilized capacity,
capacity
that
doesn’t
provide
the
expected
financial
return.
And
there
are growing
reports suggesting
that
this
is
exactly
what
may
be
beginning.
Increased
Risks
The
problem
is
compounded
by
the
FOMO
of
various investors
that’s
been
going
on
as
the
AI
hype hit
overdrive.
Investors
and
lenders
with little expertise
and
knowledge
have
waded
in
when
perhaps
they shouldn’t have. And
if
they
get nervous,
they
may
be
quick
to
exit.
A recent
article makes
this
very
point.
In
2025,
credit
transactions
for
data
centers
in
the
U.
S. reached
at
least
$178.5 billion.
Major tech
players
have
pushed
the
total
to
over $6.57
trillion.
And
a
big
piece
of
the future
data
center
capacity
will
be
built
by
new
players
with
little
data
center
experience.
We
talked
to
an experienced infrastructure
investor, Hector
Fornelli, about
this
very problem.
Fornelli’s
company, AgilaInvestments,
has
invested
in
multiple
data
center
projects,
big
and
small.
He
says, “There’s too
much
money
going
into
this.
40%
of
investments
going
through
Wall
Street
are
going
into
the
AI
data
center
space.
At
some
point it’s going
to
break.
And
the
reason
why
it’s
going
to
break
is
because
people
are
not
taking
the
proper
steps
to
get
there.” He also noted that
the energy
capacity in
the
U.S.
is nowhere near
enough
to
supply
the
demand
for
power
to
run all the planned data
centers.
But entities are continuing
to invest
in
the
centers
without
considering
where
the
power
might
come
from
or
whether
there
are
off-meter sources.
Moreover,
the
data
centers
generate
massive amounts of
heat
that must be
dealt
with which is
not
being
considered
by
the
data
center
planners
or
their
investors.
And
finally,
there
needs
to
be
in
place agreements ensuring that the output
from centers will
provide
a
return.
As
Fornelli
puts
it,
“If
it
doesn’t
have
a
clear
pathway
to
those
three, it’s not
worth
investing
in because
at
some
point
there’s
going
to
be
a
surplus
of
data
center
offers
and
demand
is
not
going
to
be
as
large.”
Fornelli believes that’s
the kind of
due
diligence
that
should
be
done
but
is
not,
sowing
the
seeds
for disaster.
History Lessons
As
George
Santayana
famously said, “Those
who
cannot
remember
the
past
are condemned to
repeat
it.”
That
may
be
the
case
here
as
some
pundits
have already
noted.
In
the
mid-1800s,
there
was
a
huge
boom
in
railway investment
as
investors
became
enchanted
with
the railroads.
But
many
of
the
projects
in
which
they
invested
were
poorly planned or
never
built.
As investors began
to
see
the
profits
had
been
vastly
overestimated,
the
railroad
stock
prices collapsed, and
the
investments
were lost.
A
more
recent
example: in
the
1990s,
the
internet
and
mobile
phones
were all
the
investor
rage. They believed
demand
for
data
and
connectivity
would
skyrocket,
so
they
spent
huge
amounts
to
build
the
networks
that
would
carry
that
traffic. But
the
demand
didn’t
play
out
as
forecast.
That led
to
the
collapse
of
major
players
like
WorldCom
and
Global
Crossing and the Telecoms
Crash in
2001.
Easing Investors’
Angst
But
there
are
solutions
that
could
ease
investors’
angst. As
we
discussed
in
a previous
article, smaller data
center
and
energy projects
that
are
less expensive and
don’t
take
so
long
to build
could
be
employed.
With
smaller
projects,
the
resulting
risk
to
investors
is
less. Smaller
projects
can
better
match
demand
since
if
demand
falls,
the
amount
at
risk
for
investors
is
smaller.
They
can
be
added
incrementally
and
still
be
economically valid.
If the
projects
are delayed, the
impact
is
less.
The
window
for
something
to
go
wrong
is smaller.
There is
a
faster
track
to
the
return.
They
allow
for
greater flexibility should
there
be
unanticipated
risk.
Smaller
projects
are
less
sensitive to interest rate
hikes.
These smaller
projects
can
take
the
form of
smaller
data
centers
powered
with
generators
that
depend
on
existing
and
underutilized
energy sources like
combined
heat
and
power
(CHP)
and
behind-the-meter
renewable
energy sources.
Fornelli
agrees that
smaller
projects
may
not
only
be
less
expensive
but useful:
“There
are
other
uses
for
data
centers
that
people
are
not
really
paying
attention
to. There’s
medical
services.
Hospitals,
medical
labs,
pharmaceutical
labs
and
banks
that
can
use
AI
big
time,
but
they
don’t
need
a
300
megawatt
data
center.
They
need
a
10
megawatt
data
center.
Or
a
five
megawatt
data
center.
They
need
to
process
a
lot
of
information,
but
the
source
of
the
information
is
one,
and
the
delivery
of
the
information
is
to
one
single
place.”
Or,
for
example
law
firms.
The
Impact
for
Legal
Which
brings
us
to
the
impact
of
all
this
on
the
legal
community.
What’s
happening
right
now
is
a
huge
rush
to
adopt
AI
tools
deep
within legal
workflows
and
processes. Often
this
employment
is
made
without
considering
whether
the
tools achieve any
savings
or assistance.
And with
that
rush and
lack
of
studied
approach,
that
FOMO,
comes
the
risk
of
overreliance
and
lack
of contingency planning
if
things
go
south
on
the
infrastructure
or
supply
side.
If
the
volcano
blows,
then
law
firms
may
be
left
with unusable
and
expensive
technology.
They will have
to
scramble
to
figure
out
how
to
get
work
done
with which technology was
a substantial
contributor.
In
an
industry
that
is
deadline
driven
with
little
margin
for
error,
that
could
be catastrophic.
It’s
happened
before. Perhaps
most
famously
was
the collapse
of Clearspire in
2010. Clearspire promised
a
tech-
forward
virtual
law
firm
model that
would
be
more
efficient. But
when
it
shut
down
due
to
operational
and
financial
issues,
those
relying
on
it
had
to
quickly
find
other
options. In 2010,
the
practice management
company
Aderant
Expert
Sierra
was
discontinued, forcing
customers to
migrate
to
other
services.
A
similar
thing
happened
when Amicus
Attorney slowly
unwound.
These
kinds
of
migrations
can
be
disruptive
to
say
the
least.
Imagine
the
cost
and
disruptions
should
there
be
a
significant
AI infrastructure failure
or
if
the
AI
services
that
depend
on
that infrastructure didn’t
function
properly.
The
Cloudflare
outage
could
be
a
harbinger
of
things
to
come.
What’s
a
Law
Firm to Do?
Warnings like
these
are
often
met
with
a
“it
can’t
happen
here”
shrug
or
a
“it’s
too
big
to
fail”
roll
of
the
eyes. But
lawyers
and
legal professionals
pride
themselves
on
being
skeptical
and
assessing
risks
for clients.
We
need
to
do
the
same
for
ourselves.
That
means
contingency planning for if (when?) the “what
if”
actually
happens. It
means
hedging
bets
on
AI
to
prevent
overreliance.
It
means
asking
if
you’re
purchasing
AI
tools
out
of
FOMO
or
for
valid
reasons. As
the
last
one
holding
on
to
my
BlackBerry
long
after
the
cost
analysis
made
no
sense,
I
know what
it
means
to
not
be
tech
diligent.
It
Means
Due
Diligence
Talk
to
any
attorney
today
and
they don’t
have a
clue
what
their
contracts
with
AI
vendors
actually
say
or
how
financially
stable
many
vendors really
are.
That’s
not
the
kind
of
due
diligence
we
engage
in
for
our
clients.
Due
diligence means
assessing vendors’ financial integrity.
Can
they
continue supplying products
and
services if
there
is
a
downturn? It
means
looking
at
the
debt
of
and investments in
the vendor to
determine
staying
power
and
robustness.
It
means
looking
hard
at
vendor agreements and indemnity and
liability provisions.
It
means
keeping
up
with contractual modifications
that vendors
like
to
spew
out
with
little
notice.
It
means
paying
attention
to
what
is
going
on
in
financial
markets relating to
AI
and
infrastructure.
It
means
following
the
money.
Stephen
Embry
is
a
lawyer,
speaker,
blogger,
and
writer.
He
publishes TechLaw
Crossroads,
a
blog
devoted
to
the
examination
of
the
tension
between
technology,
the
law,
and
the
practice
of
law.
Melissa
“Rogo”
Rogozinski
is
an
operations-driven
executive
with
more
than
three
decades
of
experience
scaling
high-growth
legal-tech
startups
and
B2B
organizations.
A
trusted
partner
to
CEOs
and
founders,
Rogo
aligns
systems,
product,
marketing,
sales,
and
client
success
into
a
unified,
performance-focused
engine
that
accelerates
organizational
maturity.
Connect
with Rogo
on
LinkedIn.
Regional
business
continues
to
boom
across
the
legal
profession,
with
top
Biglaw
firms
launching
new
offices
in
some
of
the
hottest
spots
around
the
country
in
the
hope
of
snatching
up
some
valued
market
share.
In
fact,
some
of
the
nation’s
largest
law
firms
are
still
eager
to
“pahk
the
car
in
Hahvahd
Yahd,”
because
as
we
enter
the
new
year,
at
least
one
firm
has
announced
its
expansion
into
Boston.
Haynes
&
Boone
recently
announced
that
it
has
opened
an
office
in
Beantown,
throwing
open
its
doors
earlier
this
week.
Taylor
Wilson,
the
firm’s
managing
partner,
said,
“We
have
long
seen
Boston
as
a
natural
complement
to
our
strengths
across
the
Northeast.”
At
the
moment,
the
Top
100
Am
Law
firm
is
stationed
in
a
temporary
space
in
One
Financial
Center,
but
come
spring,
the
firm
is
planning
to
find
a
permanent
location
in
the
same
building.
As
noted
by
the
American
Lawyer,
the
firm’s
Boston
outpost
will
focus
on
investment
management
and
regulatory
matters,
complex
business
litigation,
and
asset
securitization.
Here
are
some
additional
details
on
the
attorneys
who
will
be
working
there:
Richard
Kerr,
an
asset
management
and
investment
funds
partner
who
joined
from
K&L
Gates
in
November,
will
manage
the
office.
Additionally,
trial
partner
Dan
Rosenfeld
joined
from
Sullivan
&
Worcester
in
December,
and
K&L
Gates
associate
counsel
Donela
Qirjazi,
also
an
asset
management
and
investment
funds
lawyer,
joined
this
month
as
a
partner
in
the
new
Boston
office.
Two
others
who
joined
Haynes
and
Boone
in
2025
will
also
work
out
of
the
Boston
office—litigation
partner
Lauren
Coppola
and
asset
securitization
counsel
David
Sagalyn.
Kerr,
a
Boston
native,
is
really
excited
to
be
back
in
his
hometown.
“The
thing
that
comes
across
is
sort
of
the
tremendous
culture
of
the
firm—the
desire
to
do
things
right—and
it
really
impressed
me
with
the
strategic
nature
of
looking
at
Boston,”
he
told
Am
Law.
“The
question
really
for
me
was
why
wouldn’t
I
want
to
do
this?”
Boston
is
brimming
with
wicked
business
opportunities,
so
we
wish
all
the
best
to
Haynes
and
Boone!
Staci
Zaretsky is
the
managing
editor
of
Above
the
Law,
where
she’s
worked
since
2011.
She’d
love
to
hear
from
you,
so
please
feel
free
to email her
with
any
tips,
questions,
comments,
or
critiques.
You
can
follow
her
on Bluesky, X/Twitter,
and Threads, or
connect
with
her
on LinkedIn.
Many
people
gravitate
to
law
because
of
the
financial
opportunity
it
offers.
Unfortunately,
the
billable
hour
just
isn’t
enough
for
some
attorneys.
When
that
happens,
profiting
from
their
clients
dips
into
taking
advantage
of
them.
While
the
occasional
attorney
risks
their
license
for
a
huge
payout
with
no
consequence,
most
of
them
can’t
outrun
the
law
for
too
long.
Justice
finally
caught
up
to
an
attorney
who
frauded
her
clients
out
of
millions.
The
Daily
Record
has
coverage:
A
disbarred
Rockville
attorney
pleaded
guilty
Jan.
9
to
theft
and
fraud
schemes
worth
more
than
$4.2
million.
Kurland,
64,
pleaded
guilty
to
one
count
of
theft
over
$100,000
and
15
counts
of
misappropriation
by
a
fiduciary,
and
faces
a
maximum
of
15
years
in
prison,
according
to
the
plea
agreement.
The
majority
of
the
schemes
involved
a
mix
of
high
ROI
fibs
about
oil
and
crypto
currency.
Word
to
the
wise
—
unless
your
name
is
Eric
Adams,
Jake
Paul,
or
Hawk
Tuah
Girl,
leave
crypo-scamming
people
out
of
their
hard-earned
cash
to
the
professionals.
Kurland
hired
Covington
&
Burling
to
represent
her
in
the
proceedings
to
come.
Chris
Williams
became
a
social
media
manager
and
assistant
editor
for
Above
the
Law
in
June
2021.
Prior
to
joining
the
staff,
he
moonlighted
as
a
minor
Memelord™
in
the
Facebook
group Law
School
Memes
for
Edgy
T14s
.
He
endured
Missouri
long
enough
to
graduate
from
Washington
University
in
St.
Louis
School
of
Law.
He
is
a
former
boatbuilder
who
is
learning
to
swim, is
interested
in
critical
race
theory,
philosophy,
and
humor,
and
has
a
love
for
cycling
that
occasionally
annoys
his
peers.
You
can
reach
him
by
email
at [email protected]
and
by
tweet
at @WritesForRent.
Joe
