Watch Desk posted an update
Late delivery of a data centre can now mean penalties of more than $5 million a day under some tenant deals, The Information reports. It says the fees have risen from about $1 million a day earlier this year as tenants account for revenue lost when facilities arrive late.
Why it mattersThe report also says insurance broker Marsh arranged a bespoke delay-in-delivery policy for a developer facing a $1 million daily penalty. That puts a price on a familiar computing-industry bottleneck: getting large facilities built on time.
Discuss: Should data-centre developers bear these steep delay costs, or should tenants share more of the risk when construction runs late?
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