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AI Data Center Tenants Demand More Than $5 Million Daily Penalties for Construction Delays
marketbrief.nowAI data center tenants are demanding daily penalties exceeding $5 million for construction delays, up from about $1 million earlier this year, according to a report from The Information. A seven-month delay could result in a developer owing more than $1 billion in fees, and KKR warned that such late fees could lead to more developer bankruptcies than rising interest rates. Amazon executive Andy Jassy noted that AWS is already booking capacity into 2028.
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Key sources
- SOURCE@wallstengine“penalties of more than $5 million per day if developers fail to deliver power and facilities on time, up from around $1 million earlier this year”x.com
- SUPPORT@wallstengine“a 7-month delay could leave a data center developer owing its AI or cloud tenant over $1 billion in penalties alone”x.com
- SUPPORT@stocksavvyshay“KKR warning that late fees could bankrupt more builders than rising interest rates”x.com
- SOURCEhuggingnewshuggingnews.com