Selling a data center is not just a real estate process. Buyers will look closely at the asset as a mix of real estate, infrastructure, customer contracts, power rights and operating history. The more organized the seller is before launch, the smoother the sale process will be.
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MAE Clauses in Data Center Acquisitions
In any acquisition agreement, the “material adverse effect” clause does a lot of quiet work. It helps determine when a buyer may be excused from closing if something sufficiently bad happens between signing and closing. In practice, MAE clauses are rarely successful as closing “outs,” but they still matter because they frame risk allocation, negotiating leverage and the parties’ expectations about what types of adverse developments remain with the buyer versus the seller.
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Five Legal Provisions to Negotiate in a Colocation Agreement
A colocation agreement may start with a commercial bargain over space, power, cooling and connectivity, but the provisions that matter most in a dispute are often the legal ones: remedies, liability caps, termination rights, security obligations and control over changes to the operating environment. These provisions are central to the overall risk-allocation negotiated between parties. Below are five legal provisions that deserve close attention.