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Turner & Townsend Unveils Eighth Annual Data Centre Cost Index: Essential Insights for Construction Industry Leaders
Turner & Townsend has just released its eighth annual Data Centre Cost Index, providing valuable insights into the construction sector.
The annual Data Centre Cost Index from global professional services company, Turner & Townsend, analyses the current average cost per watt to build data centres in 50 global markets, and uses survey responses from 250 sector leaders to pinpoint trends across the data centre industry. Now in its eight year, the report remains the industry’s only cost index that is specifically tailored to construction, providing unparalleled insights to help businesses navigate this sector, and sees five new markets added: Lagos, Helsinki, Lisbon, Cardiff and Bordeaux.
As the data centre market continues to be one of the most dynamic and growing areas of the global economy, understanding the costs associated with data centre construction is crucial for staying competitive. Here are some key points found:
- Industry survey shows the top drivers for increased data centre investment are extra capacity and technological upgrades to keep pace with AI led demand
- 92% of those surveyed see AI as the technology that will have the most significant impact on data centre operations in the next 3-5 years
- 80% report delays to manufacturing or delivery of critical equipment as industry capacity struggles to keep up with demand
- 92% say that power availability is more important than the location of new schemes
- Many markets, such as Auckland, Vienna, Sao Paulo, Singapore, Queretaro, and Cape Town have cost inflation above 20% - driven by low supply chain capacity
The report suggests that clients centralise delivery to help them better assess global market pressures, draw on international talent, and build up local regional capacity in a coordinated way. Additionally, it also recommends targeting regions with other existing complex technological construction experience, as skills in life sciences and advanced manufacturing, for example, are more easily transferable.
Source: Turner and Townsend's Report
