AI data center tenants demand $5M daily penalties for late delivery

AI data center tenants are increasing their demands for penalties in contracts with developers, now requiring over $5 million per day for late power and facility delivery. This marks a significant rise from earlier this year, when penalties averaged around $1 million per day. The shift comes amid widespread delays in the sector, with only 50-60% of scheduled U.S. data-center capacity expected to come online as planned in the next one to two years. Constraints such as power availability, permitting, equipment shortages, and construction delays are contributing factors. The heightened penalty demands suggest tenants are transferring more schedule risk to developers due to the substantial operational and financial impacts of late capacity delivery.

BeCrypto News shows a short excerpt and links to the publisher. The full report belongs to Crypto Briefing.