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A landlord’s failure to enforce lease rights in response to a tenant’s default can result in the default rights becoming unenforceable.

Data center leases represent a fundamental departure from traditional commercial real estate agreements, functioning as hybrid instruments that combine property rights with infrastructure service guarantees. As hyperscalers and institutional investors pour capital into this specialized sector, understanding the unique provisions governing power allocation, cooling systems, and service level agreements becomes essential for effective risk allocation across the capital stack.