Data centre construction cost index 2026-27

Key findings from this year’s research 

Costs are stabilising, but structurally higher 

52% of survey respondents experienced cost inflation of between 6 and 15% in 2026. Our Index shows North American and European markets seeing the sharpest rises, with average cost per watt up 13% year on year.  

The most expensive data centre markets 

Japan leads the index for the fourth consecutive year. Tokyo tops the table at US$18.28 per watt, followed by Osaka at US$17.15 per watt and Zurich at US$15.93 per watt. 17 European and 13 North American markets make up almost half the total table, reflecting continued high costs in mature regions. 

Skilled labour shortages are a strategic risk 

81% of respondents say skilled labour in their region is constrained. Mechanical, electrical and plumbing (MEP) trades remain the most sought-after. As more projects incorporate on-site power generation, demand for electrical specialists is growing further. 

AI-ready facilities carry a cost premium 

In the United States, data centres built to handle AI workloads cost around 10% more than traditional facilities. Higher rack density, liquid cooling requirements and accelerated delivery schedules are the primary drivers. The most advanced AI-specific facilities are seeing cost-per-watt construction rates of between US$14.00 and US$16.00—significantly above the US$12.08 country average. 

Scale doesn't guarantee lower costs 

Larger projects are no longer a reliable route to drive economies of scale. Labour and equipment constraints, greater design flexibility and schedule uncertainty are driving up prices through higher labour costs, risk premiums and extended schedules.  

Future outlook  

Confidence in the sector remains strong. 74% are confident the industry is resilient to economic downturn.  

AI is driving an unprecedented pipeline of demand, with 39% of respondents working primarily on AI-ready facilities over the past 12 months and 53% anticipating AI-dominant workloads in the year ahead. 

Governments are becoming active participants in the sector, not just regulators with numerous examples globally of multi-billion sovereign investment programmes. Many governments are also playing a more active role is incentivising and streamlining data centre delivery, reflecting the sector’s importance for wider economic growth.  

The organisations that lead through the next decade will be those that secure critical resources early, build closer partnerships with suppliers and adapt quickly as market, regulatory and technology demands evolve.  

The sector’s challenges are increasingly interconnected and must be met with integrated solutions. 

What's inside the index? 

• A full ranking of 62 markets, with cost per watt and index scores based on a typical 60MW design 
• Analysis of 12 new markets added to the index this year, including Hong Kong, Rio de Janeiro and Barcelona 
• A standalone chapter on the AI premium, with a spotlight on construction costs in the United States 
• Insight into skilled labour shortages, the shift to liquid cooling and the rise of alternative delivery models 
• A look at the role of government, data sovereignty and the long-term outlook for the sector 

Whether you're planning a single data centre or managing a global portfolio, the index gives you the benchmarks and insight you need to plan capital, manage risk and deliver with confidence.