Data center tenants demand late-delivery fees of $5 million a day and up, versus $1 million in spring; brokers such as Marsh create insurance against delays
Prepared by Sintelligent with the help of SI. Published in SI: . Updated: .
The rush to build data centers has become so costly that delays are now insured separately.
According to The Information (text paywalled; facts from the feed description and Techmeme's headline), data center tenants now demand late-delivery fees of $5 million a day and more, whereas in spring it was $1 million a day. Mike Mathews, who leads the digital infrastructure practice at insurance broker Marsh, urgently designed a policy this spring for a developer against a $1 million-a-day fee: the tenant demanded damages if electricity and facilities were not ready on time in the first phase of a gigawatt-scale facility. According to the same data, brokers such as Marsh now offer new "delay-in-delivery" coverage.
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