Data center late fees reach $5 million a day, spawning new insurance

Data center developers now face late-delivery penalties of $5 million or more per day as tenants demand compensation for lost revenue. Insurance broker Marsh has created a bespoke delay-in-delivery policy for data centers, up from roughly $1 million-a-day fees just months earlier.

• Late fees for delayed data centers have climbed to $5 million per day
• Marsh designed a dedicated delay-in-delivery insurance product
• Typical penalties were around $1 million a day just months ago
• The deals cover gigawatt-scale facilities with strict power deadlines