Nageswaran & Poojari: Let’s welcome data centres—but on the right terms
In an emerging economy, the developer, its lenders and the distribution company that serves the facility are all exposed to a single tenant, on lease terms shorter than the life of the assets. If demand falls short or the hardware ages faster than expected, the tenant may walk away or default, leaving the building, the loans and idle grid capacity with domestic banks, utilities and, ultimately, taxpayers. The gains would flow abroad, while the costs of disappointment would be borne at home.
