When can the provider switch off service or end the contract?
Suspension is the colocation provider’s quickest remedy, and the one a GPU lender fears most: servers that are switched off earn nothing. Enovum may suspend for an acceptable use breach, a security incident or equipment that interferes with the facility, with no credit for the time off, and keep the suspension in place during a dispute. Vernon only lets the provider suspend access in an emergency or for a material breach of the site rules, and a payment default needs five business days’ notice.
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What the filed contracts say
Contract
What the filed wording says
Enovum / Nscale MSA
Enovum may suspend all services while it investigates a breach of the acceptable use policy, the contract or the law, with no credit or refund for the time off.
Enovum / Nscale MSA
Equipment that interferes with the facility must be dealt with within an hour; failing that, or after three interferences in a year, Enovum may suspend, then terminate.
Enovum / Nscale MSA
A suspension stays in place while a dispute about it is resolved.
Vernon colocation MCSA
The provider may suspend access only in an emergency or for a material breach of the site or security rules.
Vernon colocation MCSA
Non-payment becomes a customer default five business days after notice, and the provider may then terminate.
Supermicro / Lambda sublicense
Lambda gets the master agreement’s cure periods less three days, so Supermicro can cure before the provider acts.
The filed wording
Enovum shall have the right to suspend Services and/or Enovum Network access to any Customer if in the opinion of the Enovum Network administrators, Customer’s server is the source or target of the breach of any of the terms of the AUP, the provisions of this Agreement, the Enovum Policies, or Applicable Laws. If inappropriate activity is detected, all Services of Customer will be suspended until an investigation is complete. Where deemed advisable, law enforcement will be contacted and alerted by Enovum regarding the activity without any requirement of prior notification to the User or Customer. Customer will not be credited or refunded for the time Customer’s machines were suspended or for any losses or damages suffered by Customer for such suspension.
Each extract is quoted from the contract as filed with the SEC, checked against the filed text when it was added; “…” marks words left out. Filers redact commercial terms, so a [***] or [*] is the filer's, not ours. The summaries describe the wording, not how a court would read it, and each contract's defined terms and other clauses can change the effect. General information drawn from public filings. It is not legal advice on any transaction, and using this page does not create a lawyer-client relationship. Views are personal.
InfraCompute Weekly
The week in compute finance, read from the filings.
Deals, terms and the clauses behind them, for the people financing data centres, GPU clouds and the power behind them. By Randeep Bubbra.
