WEBVTT

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In today's data center gold

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rush, speed matters -
but can come at a cost.

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The right lease can unlock
value and minimize risk, while

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the wrong one can trigger
delays and other challenges.

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The current data center
market looks very different

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from what it did
two years ago:

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AI campuses and cloud
deployments are surging,

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alongside new
AI companies and “neoclouds”

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with ever-more complex
leasing requirements.

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Owners, operators,
and sponsors of data centers

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need flexible lease structures
tailored to their needs —

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without compromising

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how financeable or saleable
they are.

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With leasing projects
moving at a rapid pace,

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staying thoughtful while
moving fast is the challenge.

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There are several risks
if possible pain points

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in data center leases aren’t
addressed ahead of time.

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For example, developers
and sponsors might mistakenly

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believe preliminary utility
paperwork obligates power.

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Discovering
the mistake can push projects

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back in the queue and trigger
heavy tenant remedies like

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rent credits, step-in
rights, and even termination.

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A delayed timeline
can also cause problems

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when sourcing
construction, equipment,

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and housing for labor

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to build these
massive data centers on time.

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Finally, incomplete
“includable cost” definitions

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in leases can leave hundreds
of millions of dollars

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on the table and force
awkward renegotiations.

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Experienced counsel

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can help companies
avoid pitfalls

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and structure,
finance, and execute leases

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that meet their business
needs.

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At Latham, we’ve
helped owners, operators,

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and sponsors design
flexible leases

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that align requirements and
build in realistic timelines

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that projects can meet.

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We guide both established
players and new entrants,

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flagging
what's missing and minimizing

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risk in a complex, fast
moving environment.

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I'm Mike Rechtin,
and I've been advising clients

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on complex data center
transactions for 15 years.