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Key Considerations for your Modular Data Centre Procurement Contract

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Digital infrastructure demand paced by a rapid increase in AI computing and expectations for more in the coming years have spurred interest in modular data centers (“MDCs”). Designing and constructing a traditional data center can take years, require substantial engagement with local trades (plumbers and electricians), and require expensive retrofitting as newer AI chips demand greater power and cooling capacity. MDCs offer advantages in deployment speed, scalability, and operational flexibility. However, they still require a significant capital investment and are not yet “set it and forget it.”

Michael Kurzer, Alexa Chally, and Sean Dao provide an overview of critical contract provisions that buyers should scrutinize when negotiating a modular data center agreement.

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This information is provided by Vinson & Elkins LLP for educational and informational purposes only and is not intended, nor should it be construed, as legal advice.