Data center construction is facing record-breaking inflation amid delays to materials deliveries and competition for skilled labor from large-scale advanced manufacturing projects, according to research from Turner & Townsend.
The Data Center Cost Index 2022 reveals that the average cost to build data centers has increased 15 percent on average across global markets. The research analyzes construction input costs — including labor and materials — across 45 key markets, alongside industry sentiment and insight from a survey of 250 data center professionals.
Of the 45 key markets covered in the survey, North America has five of the top 10 most expensive markets in the world. This is prompting many to reevaluate their development strategies, entering new or emerging regional markets such as Columbus, Ohio, and even Canada.
Nearly all (95 percent) of experts surveyed agreed that global materials shortages have had an impact on construction timescale