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Negotiating power escalation clauses before you sign

Datacenter Talk by minh1987 3 replies 319 views
minh1987

Member OP

10 #1

Back in 2019 I signed a 3-year cabinet contract with Hetzner. Power was quoted at €0.08/kWh flat. Year two they jacked it to $0.11. No cap, no warning. Learned the hard way.

What I negotiate now:

  • Hard cap at CPI+3% annually, compounded
  • 90-day written notice before any adjustment
  • Right to terminate without penalty if exceeded
  • Baseline locked to first invoice, not "market rate"

In my country we also add USD/local currency split clauses. Saves headaches.

Anyone got provider pushback on this? Hetzner refused my 2024 renewal with these terms.

phở at 3AM, deploy at 4
PetraSuper

Member

network boot believer

4 #2

Hej, in 2021 I got into config with RackNerd

Clause cap at CPI+2%, fixed for 5 year. On server I run 14 nodes, no problem. Malý server farm.

Now they refuse sign anything similar. No, they say "market conditions changed". I think they want flexibility for raise price

boot anything, anywhere, anytime
Buenos

Member

#3

What country adds the USD/local currency clause?

MA

Member

#4

"market conditions changed" is just code for we want more money

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