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Data Center Facility Agreement

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DATA CENTER FACILITY AGREEMENT

PARTIES

RECITALS

WHEREAS, Provider operates a secure data center facility located at (the facility) and offers space, power, cooling and related services to third parties; and

WHEREAS, Client desires to obtain from Provider certain colocation, rack, cage, and support services as set forth in this Agreement and Provider agrees to provide such services under the terms and conditions herein.

NOW, THEREFORE, in consideration of the mutual covenants set forth below, the parties agree as follows:

SCOPE OF WORK

Provider shall furnish Client with the data center services described below (collectively, the Services). Provider shall provide space, conditioned power, network cross-connects, remote hands (as specified), physical security, environmental monitoring, and other ancillary services necessary for Client's operation of equipment at the Facility. The Services to be provided, the number of racks or cabinets, and specific equipment locations will be as set forth and detailed by the parties in writing.

SERVICE LEVEL AND OPERATIONS

Provider shall use commercially reasonable efforts to maintain the Facility environment, power, cooling and network infrastructure to support the Services. Provider warrants an annualized uptime target of . In the event Provider fails to meet the uptime target, Client's sole and exclusive remedy shall be service credits as set forth below.

PAYMENT TERMS

Client shall pay Provider the fees for Services as set forth below. Fees are due in accordance with the Payment Schedule. All fees are non-refundable except as expressly provided in this Agreement.

Late payments shall accrue interest at the lesser of (a) the maximum rate permitted by applicable law or (b) . In addition, a late payment administrative fee of may be charged for each late invoice.

TERM AND TERMINATION

This Agreement shall commence on and shall continue until (the Term), unless earlier terminated in accordance with this Agreement.

Either party may terminate this Agreement for convenience upon days' prior written notice. Either party may terminate immediately for material breach if the breaching party fails to cure such breach within thirty (30) days after receipt of written notice, or immediately for breach of confidentiality or material security obligations.

CONFIDENTIALITY

Each party acknowledges that during the Term it will have access to Confidential Information of the other. "Confidential Information" means non-public information disclosed in any form that is designated confidential or that reasonably should be understood to be confidential given the nature of the information. Each receiving party shall (a) use Confidential Information solely to perform its obligations hereunder, (b) restrict disclosure to employees, agents and subcontractors having a need to know and subject to confidentiality obligations at least as protective as those herein, and (c) not disclose Confidential Information to any third party without prior written consent, except as required by law. Confidentiality obligations survive termination for a period of five (5) years, except trade secrets shall be protected for so long as they remain trade secrets.

INSURANCE AND INDEMNITY

Provider shall maintain commercially reasonable insurance for the Facility operations, including general liability, property damage and cyber/security insurance. Client shall maintain insurance covering Client equipment and operations at the Facility. Each party shall indemnify, defend and hold harmless the other from third party claims arising from the indemnifying party's negligence or willful misconduct, subject to customary limitations and exclusions set forth in this Agreement.

ACCESS, SECURITY, AND COMPLIANCE

Client shall comply with Provider's access policies and security protocols. Provider shall control physical access, badge issuance, and maintain surveillance and environmental controls. Client is responsible for ensuring its use of the Facility and any hosted equipment complies with applicable laws and industry standards.

LIMITATION OF LIABILITY

EXCEPT FOR LIABILITY ARISING FROM WILLFUL MISCONDUCT OR GROSS NEGLIGENCE, BREACH OF CONFIDENTIALITY, OR INDEMNIFICATION OBLIGATIONS, NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR CONSEQUENTIAL, INCIDENTAL, SPECIAL, PUNITIVE, OR EXEMPLARY DAMAGES, INCLUDING LOSS OF PROFITS, LOSS OF DATA, OR BUSINESS INTERRUPTION DAMAGES, WHETHER IN CONTRACT, TORT OR OTHERWISE. THE AGGREGATE LIABILITY OF PROVIDER FOR DIRECT DAMAGES ARISING OUT OF OR RELATED TO THIS AGREEMENT SHALL NOT EXCEED THE TOTAL FEES PAID OR PAYABLE BY CLIENT TO PROVIDER DURING THE SIX (6) MONTHS PRECEDING THE EVENT GIVING RISE TO LIABILITY.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of , without regard to its conflicts of law principles. Any dispute arising out of or relating to this Agreement shall be resolved in the courts located in the foregoing state unless the parties agree in writing to arbitration.

ENTIRE AGREEMENT

This Agreement, together with any exhibits, statements of work, rate cards, purchase orders and written amendments signed by both parties, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, proposals, representations and understandings, whether written or oral. No amendment or waiver shall be effective unless in writing and signed by authorized representatives of both parties.

MISCELLANEOUS

If any provision of this Agreement is held invalid or unenforceable, the remaining provisions will remain in full force and effect. Neither party may assign its rights or obligations under this Agreement without the prior written consent of the other party, except that Provider may assign to an affiliate or in connection with a sale of substantially all of Provider's assets.

Provider:

By:

Date:

Client:

By:

Date:

Enter text✕

What a Data Center Facility Agreement Covers

Data Center Facility Agreement defines terms for physical access, space, power, cooling, security, and services between a data center operator (provider) and a tenant or customer. It sets responsibilities for site access, rack/cage allocation, power and cooling allocations, equipment installation, maintenance, service level commitments, liability and indemnification, insurance requirements, and termination/transfer conditions. The agreement also covers compliance with applicable laws, privacy and data handling controls, permitted vendors, and emergency procedures. Parties typically customize attachments for pricing, floor plans, and technical specifications.

Why a Clear Agreement Matters for Operations and Risk

Use a Data Center Facility Agreement to allocate risk, clarify operational responsibilities, and document service levels and costs. A clear agreement reduces disputes, supports regulatory compliance such as HIPAA for healthcare customers, and establishes remedies for downtime, security incidents, and contract exit terms.

Why a Clear Agreement Matters for Operations and Risk

Who Typically Uses This Agreement

Organizations involved in colocations, cloud providers, enterprise IT, and managed service providers use Data Center Facility Agreements to govern physical and operational relationships.

  • Data center operators: define rates, access rules, and maintenance windows for tenants.
  • Enterprise IT teams: secure space for critical servers, power redundancy, and SLAs.
  • Cloud and MSPs: attach technical exhibits, onboarding procedures, and vendor access policies.

Each party customizes the agreement by facility, service tiers, and regulatory needs before final execution to ensure operational clarity.

Representative Signer Profiles

Provider COO

Leads facility operations, enforces access controls, oversees power and cooling capacity, and manages vendor contracts and maintenance schedules. Responsible for billing, incident response coordination, and compliance reporting under contractual and regulatory obligations.

Tenant IT Director

Manages deployment of equipment inside racks, ensures software and hardware compatibility, tracks service credits and SLAs, coordinates access for remote hands, and validates compliance obligations for data handling and backups.

Core Sections to Include in a Professional Agreement

A professional Data Center Facility Agreement organizes operational terms, service levels, liability, security, change control, and technical exhibits into a single enforceable contract.

Parties

Identifies provider and tenant legal entities, authorized contacts, billing addresses, and designated facility representatives with authority to approve access, changes, and emergency actions during the contract term.

Services

Describes space allocation, rack or cage assignments, power and cooling capacity, cross-connects, network demarcation, remote hands, and any managed services the provider supplies.

SLA

Sets measurable uptime targets, reporting cadence, service credit formulas, incident response timelines, exclusion events, and escalation procedures for outages and degradations.

Security

Specifies physical access controls, visitor vetting, badge systems, CCTV, network isolation, vendor access rules, and incident notification obligations tied to regulatory requirements.

Liability

Defines indemnification, limitation of liability caps, insurance minimums, force majeure scope, and obligations for data recovery and replacement costs after loss.

Change Control

Outlines approval process, notice periods, planned maintenance windows, emergency work procedures, and cost allocation for upgrades or facility modifications.

Step-by-Step: Completing the Agreement

Complete a Data Center Facility Agreement in sequential steps to document responsibilities, technical details, and signing.

  • 01
    Prepare Parties: Identify legal entities, contacts, and billing information.
  • 02
    Define Services: Record space, power, network, and managed services.
  • 03
    Attach Exhibits: Add floor plans, single-line diagrams, price schedules.
  • 04
    Sign and Archive: Execute signatures, collect approvals, and store copies securely.

Configure an Online Signing Workflow

Configure an online workflow to place fields, assign signers, require authentication, and automate notifications for the Data Center Facility Agreement.

Document Field Mapping And Configuration How each field behaves during workflow
Primary Signer Authentication Method Required Email, SMS code, or KBA.
Field Types And Validation Rules Text, date, number, conditional, and formula.
Document Routing And Signing Order Setup Sequential or parallel signer workflows with deadlines.
Email Notifications And Reminder Scheduling Custom reminders, escalations, and completion notifications.

Where Completed Agreements Should Be Sent and Stored

Typical routing options for a completed Data Center Facility Agreement include internal records, regulatory filings where required, and distribution to finance and legal teams.

  • Provider Records: Retain original agreement in provider contract system.
  • Tenant Records: Tenant stores executed copy for operations and audits.
  • Regulatory Filing: File exhibits or certifications only if statute requires.
  • Third Parties: Share redacted copies with insurers and auditors.

Technical Requirements for Digital Signing and Distribution

Digital delivery and signing require platforms that support PDF, DOCX, access controls, and secure audit trails compatible with business systems.

  • Formats: Supports PDF, Word DOCX, and Excel.
  • Integrations: Salesforce, Microsoft 365, NetSuite connectors.
  • Security: AES-256 encryption at rest; TLS 1.2/1.3.

Key Deadlines to Track in the Agreement

Key deadlines tied to Data Center Facility Agreements relate to tax reporting, insurance renewals, maintenance windows, and contract renewals or termination notices.

SLA Reporting Deadlines And Response:

Submit outage reports within specified SLA windows.

Planned Maintenance Notice Period Requirements:

Provide advance notice per contract, typically 48–72 hours.

Insurance Certificate Renewal And Delivery Dates:

Deliver updated COI prior to policy expiration.

Contract Renewal Notice And Options:

Provide renewal or termination notice per agreement terms.

Termination Removal Timeline And Equipment:

Complete equipment removal and restoration within agreed timeframe.

Milestone Timeline from Negotiation to Operations

A sequential milestone view helps track negotiation, construction, provisioning, acceptance testing, and ongoing operations under the agreement.

01

Negotiation and Signing

Agree terms, finalize exhibits, and execute the agreement.

02

Site Preparation

Install racks, power circuits, and network cross-connects.

03

Commissioning and Testing

Perform power, cooling, and connectivity acceptance tests.

04

Operational Handover

Begin live services, monitor SLAs, and start billing.

Common Preparation Mistakes to Avoid

  • Failing to specify exact power requirements (amps, phases, kW) leads to capacity shortfalls and disputes during ramp-up.
  • Using vague service level language without measurable metrics prevents claim of service credits or breach remedies.
  • Not attaching technical exhibits like rack elevations or single-line diagrams causes installation errors and timeline delays.
  • Omitting cybersecurity or physical access procedures leaves ambiguity over vendor access and incident response responsibilities.

Penalties and Contractual Risks

Downtime Liability: Potential large financial exposure.
Indemnity Gaps: Uncapped third-party claims possible.
Regulatory Noncompliance: HIPAA or PCI fines risk.
Incorrect Specifications: Equipment damage, outages, dispute.
Insurance Shortfalls: Claims denied for inadequate coverage.
Termination Costs: Early termination and removal fees.

Essential Information to Include in the Agreement

Tenant Legal Name: Full legal entity name exactly as on license.
Facility Address: Street, city, state, ZIP code.
Scope of Services: Power, space, connectivity, remote hands, security.
Power Allocation: kW per cabinet and redundancy details.
Insurance Requirements: Limits, carriers, and certificate holder details.
Signature Blocks: Authorized signer names, titles, dates.

Pricing and Feature Snapshot for eSignature Vendors

Pricing snapshot for common e-signature features relevant to Data Center Facility Agreements. Each vendor column lists starting price and key capability flags.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day trial Varies Varies Varies Varies
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No envelope cap 100 envelopes/user/year Varies by plan Varies by plan Varies by plan

FAQs and Troubleshooting for Agreement Completion

Answers to frequently asked operational, legal, and eSignature questions related to Data Center Facility Agreements and online completion.


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