Data Centres: Germany

Data centre projects in Germany often involve international players, which creates complex contractual structures. Global operators typically appoint international or UK-based general contractors, who then engage local subcontractors. These arrangements can be governed by English law under a Master Service Agreement. While this approach streamlines contracting for international players, there can be differences and conflicts with the terms contained in local subcontractor agreements or with local statutory requirements, increasing the potential for interface and compliance disputes. This adds an additional layer of complexity to the (already complex) GC/subcontractor dynamic.

Another recurring issue is the interface between the core and shell construction phase (usually handled by the landlord) and the fit-out phase (undertaken by the tenant or data centre operator). This is a particular issue for MEP systems and other design details. In one case that we have seen, the tenant ultimately agreed to undertake some of the core and shell works to resolve such design interface issues. This formed part of a settlement aimed at maintaining tight timelines and ensuring a seamless fit-out design.