Around The IT World

Professional Tech News from 23+ Languages

🇨🇦 English, 25 October 2026, penalty clauses

AI Data Center Penalty Clauses Surged to $5M a Day for Late Delivery

AI data center tenants are demanding over $5 million per day in late-delivery penalties from developers.

Tenants are now demanding more than $5 million per day in late-delivery penalties, a fivefold increase in the cost developers bear if they miss a handover date.

For data center developers, winning a large AI lease now comes bundled with a liability that can erase months of margin in a matter of days if power procurement or construction slips.

The trend also says something about where the power in AI infrastructure negotiations sits right now, with tenants clearly in a position to dictate terms.

Back to the latest news