Singapore ranks fourth globally for data centre construction costs

It also led SEA at $20.20 per watt, ahead of Jakarta and Kuala Lumpur.

Singapore ranked as the fourth most expensive market globally in terms of data centre construction costs, according to research from Turner & Townsend.

Singapore also led construction costs in SEA at $20.20 per watt (US$15.39), well ahead of Jakarta at $15.70/W (US$11.96), which ranked 26th globally.

Kuala Lumpur and Johor Bahru ranked 49th and 50th, respectively, both at $13.20/W (US$10.06).

Bangkok, at $12.68/W (US$9.67), placed 55th, whilst Manila followed in 56th at $12.52/W (US$9.55).

Meanwhile, Ho Chi Minh City emerged as SEA’s most cost-competitive market, ranking 60th at $10.90/W (US$8.32).

Turner & Townsend said the cost spread reflects the different stages of market maturity across the region.

“The common theme is that wherever the project sits, power, land and skilled people are in high demand,” said Patrick Thilagaraj, project director for data centres at Turner & Townsend Malaysia.

“As Southeast Asia’s data centre market continues to scale, understanding these cost dynamics will be critical for developers and investors planning their next move in the region,” he added.

Despite some stabilisation in cost pressures, Turner & Townsend said structurally higher construction costs and risks are increasingly priced into contracting, whilst a deepening skills shortage is putting pressure on labour costs.

The rising costs of data centre construction are driven by the growing scale of the projects, particularly for artificial intelligence facilities, which require alternative delivery approaches and technical specialists to overcome strained capacity, the firm added.

The index covered more than 500 live or recently completed projects across 62 markets, with construction costs benchmarked against a typical 60-megawatt data centre design.

$1 = US$0.76

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