Methodology

To generate the results of DCCI 2018, a proprietary cost model was built. The cost model individually assesses each of the six key capital cost headings: shell and core; equipment; construction labour; construction materials; preliminary costs/general conditions & general requirements; and margin/profit for each of the 32 markets featured. All costs are converted to a single currency, in this case USD, utilising the same foreign exchange rates as those used in Turner & Townsend's annual International construction market survey (ICMS).

Baseline model assumptions

A greenfield 30MW IT load data centre in the central USA region was used as a baseline. It assumed a power density of 2,000W/m2 with a net lettable to gross floor ratio of 1.5.

Shell and Core

Turner & Townsend’s network of regional offices provided parametric costs (per m2) for actual data centre shell and core construction expenses, where available.

Equipment

Actual quoted equipment costs during 2018 have been applied and factored in as necessary. Additional costs per location are also applied for local sales tax/VAT, import duties and freight.

Construction labour

Our baseline model includes actual construction hours, factored in and categorised using the Turner & Townsend ICMS published hourly rates. A productivity assessment table was developed comparing each of the 32 markets for the impact of regulations, skills and cultural/religious variances. We have then applied a ratio of expatriate labour resources anticipated to be involved, resulting in a blended rate.

Construction materials

A material price index was developed using the results of the Turner & Townsend ICMS, weighted for relevance to data centre construction.

Preliminaries/general conditions and general requirements

The results of the Turner & Townsend ICMS were initially used, and then updated to reflect actual data centre tender returns during 2018, where possible.

Margin/profit

As above, the results of the Turner & Townsend ICMS were initially used, and then updated to reflect actual data centre tender returns during 2018, again where possible.

Exclusions

The cost model does not include any client direct costs, land purchase costs, utility works, groundworks, site works, active IT equipment, fibre cabling to support office fit-outs or professional services fees.

 

 


This content is part of the Data centre cost index 2018

Go to the main Data centre cost index 2018 page