Europe Tops Global Data Centre Construction Costs
Turner & Townsend's 10th annual benchmark ranks Europe the most expensive region for new data centre builds, while the Middle East is most cost-competitive.
Updated on Nov. 3, 2026 in Data Centers
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Europe is the world's most expensive region for new data centre construction, according to the 10th edition of the Turner & Townsend Global Data Centre Construction Cost Index, which covers more than 20 markets. The Middle East was ranked the most cost-competitive region.
Why it matters
Half of the 20 most expensive cities for data centre construction are in Europe, and Zurich, Copenhagen, Oslo, Stockholm and Helsinki rank among the ten costliest globally. Rising costs could shape where operators choose to build as demand for capacity grows.
The benchmark is an annual survey measuring average construction cost per watt, and it shows Zurich at $15.93 per watt against $9.20 in the UAE and $5.79 in Shanghai, the lowest. Only 19% of European respondents said contractor capacity is manageable, compared with 52% globally, and the source does not say how these pressures will evolve.
The players
Turner & Townsend
A global consultancy that publishes the Global Data Centre Construction Cost Index, a benchmark tracking construction costs across international data centre markets.
The details
Shortages of skilled professionals are a main driver of rising costs, and demand for new European projects is exceeding contractor capacity. Grid congestion has already affected projects in the Netherlands, Belgium, the UK and Sweden, and 52% of respondents say utility connections take one to two years while 32% say they take more than two years.
Timeline
Over the past decade, the data centre industry transformed and the construction cost index was first published.
By 2050, capital expenditure on data centres is expected to reach $1.8 trillion, up from roughly $800 billion per year today.
Market Landscape
The Turner & Townsend index, now in its 10th edition, tracks per-watt build costs across more than 20 markets, and this year's ranking places Europe above every other region. The findings point to a widening gap in cost competitiveness between Europe and the Middle East as AI-driven capacity demand grows.
Higher construction costs in Europe can translate into higher prices for cloud and AI services that depend on regional data centre capacity. Users in regions with constrained grid connections may also see slower rollouts of new digital services.
The takeaway
Construction cost and grid access are becoming as important as location and demand when planning new data centres. Organisations relying on regional cloud capacity should watch how these constraints shape service availability over the coming years.
Further reading
For broader context on infrastructure buildout, see Data Centers.
Source note: This article includes information reported by Consultancy.
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