Tokyo Ranked First in Data Center Construction Cost Index for 2023
In a recent report on global data center construction costs released by Turner & Townsend on November 5, Tokyo has once again claimed the top spot among 52 countries. The city maintains its prestigious position from the previous year regarding the construction costs for data centers, which stands at a staggering $15.2 per watt, the highest among major markets worldwide. This figure underscores Tokyo's critical role as a hub for the evolution of digital infrastructure. The report indicates a strong demand for high-tech and complex digital systems in cities with elevated construction costs, reflecting an urgent need for advanced data center solutions.
As demand for data centers accelerates globally, it consistently outpaces supply capabilities. The analysis of construction costs per watt across 52 global markets reveals that the average construction cost for traditional data centers is projected to increase by 5.5% by 2025. The Asia-Pacific region is particularly flourishing, buoyed by demands for AI infrastructure and cloud services, showcasing robust growth dynamics. The development pipeline has expanded by approximately 2,300 MW, indicating escalating needs across the region.
An interesting highlight from this report is Osaka's ascent to a remarkable fourth place, with a construction cost of $14.1 per watt. This development illustrates Japan's growing influence in the global data center sector and indicates the increasing significance of its market on the world stage.
For those interested, a detailed Japanese report and press release will be distributed on November 25, providing additional insights into these findings.
About Turner & Townsend:
Turner & Townsend is a global professional services company with over 22,000 employees operating in more than 60 countries. Engaging with clients in real estate, infrastructure, energy, and natural resources sectors, it specializes in managing large programs, projects, costs, commercial management, net-zero initiatives, and digital solutions across worldwide markets. Notably, CBRE Group, the largest commercial real estate services and investment company globally, holds a majority stake in Turner & Townsend, with multiple partners owning significant non-controlling interests.
For more information, visit their website: Turner & Townsend
As demand for data centers accelerates globally, it consistently outpaces supply capabilities. The analysis of construction costs per watt across 52 global markets reveals that the average construction cost for traditional data centers is projected to increase by 5.5% by 2025. The Asia-Pacific region is particularly flourishing, buoyed by demands for AI infrastructure and cloud services, showcasing robust growth dynamics. The development pipeline has expanded by approximately 2,300 MW, indicating escalating needs across the region.
An interesting highlight from this report is Osaka's ascent to a remarkable fourth place, with a construction cost of $14.1 per watt. This development illustrates Japan's growing influence in the global data center sector and indicates the increasing significance of its market on the world stage.
For those interested, a detailed Japanese report and press release will be distributed on November 25, providing additional insights into these findings.
About Turner & Townsend:
Turner & Townsend is a global professional services company with over 22,000 employees operating in more than 60 countries. Engaging with clients in real estate, infrastructure, energy, and natural resources sectors, it specializes in managing large programs, projects, costs, commercial management, net-zero initiatives, and digital solutions across worldwide markets. Notably, CBRE Group, the largest commercial real estate services and investment company globally, holds a majority stake in Turner & Townsend, with multiple partners owning significant non-controlling interests.
For more information, visit their website: Turner & Townsend
Topics Consumer Technology）
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