Japan tops global data centre construction costs for fourth year, Asia emerges as hotspot
Asia is becoming a major data centre construction hub, with Japan ranking as the world's most expensive market. Tokyo led at US$18.28 per watt, according to Turner & Townsend's report.
Asia is emerging as a major hub for data centre construction, driven by sustained capital inflows and confidence in the region's artificial intelligence prospects, according to research from Turner & Townsend. The global programme management company's Data Center Construction Index report, released on Wednesday, shows Japan as the world's most expensive market for these projects.
Tokyo has topped the construction cost table for the fourth consecutive year, with an average expenditure of US$18.28 per watt (HK$142.58). Osaka ranked second at US$17.15 per watt, reflecting the speed of Japan's ascent and strong demand from AI companies and other tech businesses, the report said.
Elsewhere in Asia, Singapore averaged US$15.39 per watt, placing fourth globally, while Hong Kong and Jakarta ranked 14th and 26th, respectively. In contrast, Shanghai in China, Mumbai in India, and Ho Chi Minh City in Vietnam were the three lowest-cost locations among the 62 surveyed markets worldwide, with costs of US$5.79, US$6.83, and US$8.32 per watt, supported by cheaper labour and greater access to it, according to Turner & Townsend.
Outside Asia, Zurich in Switzerland ranked as the second-highest-cost location at US$15.93 per watt, and Silicon Valley in the United States took fifth place with US$15.01 per watt. Globally, 17 European and 13 North American markets made up almost half of the top table, reflecting these regions' continued dominance of the data centre industry, the firm said.
The company added that approximately half of all global data centres are in North America, and a quarter are in Europe.