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.