The cost of constructing data centers in Europe continued to rise in 2026, with Zurich and the Nordic capitals among the world’s most expensive locations, according to Turner & Townsend’s “Data Centre Construction Index” report, now in its 10th edition.
One of the main drivers of rising construction costs is a skills crisis, as surging AI demand requires increasingly complex and large-scale data center projects, which require more technical and project management experience to deliver. This is heavily affecting the market in Europe, where only 19 percent of respondents believe contractor capacity is manageable, compared with 52 percent of respondents globally.
“Europe is seeing strong demand for new, next-generation data center projects, and many of the most attractive locations, such as Scandinavia, benefit from the affordable, renewable
