Turner & Townsend has recently unveiled the eighth edition of its Data Centre Cost Index, a comprehensive resource offering detailed insights into the cost dynamics associated with constructing data centres across 50 key global markets.

Recognised as a pivotal industry benchmark, the report furnishes an index ranking and outlines the US Dollar cost per watt for both established and emerging markets. Drawing on inputs from 250 industry specialists, this edition delves into prevailing trends, challenges, and opportunities shaping the data centre sector.

Central to the report is the profound impact of AI and machine learning on the data centre landscape, shedding light on critical issues like power availability and supply chain bottlenecks that are exerting significant influence on industry growth. Turner & Townsend's findings underscore the consensus among 92% of surveyed professionals who view AI as instrumental for future data centre operations. However, 80% of these respondents have voiced concerns over delays in equipment manufacturing and delivery.

With power availability emerging as a paramount consideration in site selection for new data centre ventures, the report highlights a paradigm shift where power infrastructure outweighs geographical location in importance. Markets such as Auckland, Vienna, Sao Paulo, Singapore, Queretaro, and Cape Town are witnessing cost escalations exceeding 20%, largely attributable to constrained supply chains.

Tokyo retains its standing as the most expensive data centre market for the second consecutive year, with costs soaring to USD $14.3 per watt. Singapore follows closely in second place at USD $13.8 per watt, propelled by its status as a globally constrained power market. Zurich, Silicon Valley, and New Jersey round out the top five in the index, portraying the evolving cost dynamics shaping the global data centre construction landscape.

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