We are delighted to launch the 2018 edition of our data centre cost index (DCCI), the industry’s only cost index specific to data centre construction. Now covering 32 markets, we have chosen to share the index results, as well as an indicative construction cost per watt (US$/w) for each location. This is further supplemented by a separate parametric cost for shell and core construction in each location, with an accompanying index.
believe that the data centre construction industry has been able to meet industry demand in 2018
feel that the current data centre construction market conditions have not caused/are not causing price inflation
feel that schedule/programme certainty is more important than cost certainty to owners/ operators in today's market
believe there are sufficient consultants and/or contractors with data centre experience
expect data centre construction demand in 2019 to be greater than in 2018, with 13% unsure/ neither agree or disagree
■ Supply chain capacity (contractors and equipment vendors)
■ Skills shortages (professionals and trade-contractors)
■ Power and land availability, planning issues
■ Market conditions driving cost inflation/escalation
though opinion is divided as to whether companies that collectively make up the data centre construction industry are doing enough to train/develop staff:
In this year's expanded data centre cost index – doubled in coverage to 32 markets- it is Zurich, a new entrant, that claims the position as the most expensive market to build a data centre.
The 27 percent premium when compared to London is the result of both high labour costs and import duties on equipment as a non-member of the European Union.
Construction market conditions per location for 2018:
Here are the 2018 data centre cost index insights of the USA and Canada
Here are the 2018 data centre cost index insights of Latin America
Here are the 2018 data centre cost index insights of Asia Pacific
Here are the 2018 data centre cost index insights of Europe, Middle East and Africa
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:
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 2018).
To determine an estimated outturn cost for your specific project, or to contribute new market information to our model, please get in touch.
Head of Communications and Marketing