2022 Global Data Center Market Comparison

Power Cost

Analysis of data center costs often focuses on the initial capital expenditure, which includes costs of planning, permitting, acquiring land, and the construction of the building and potentially substations and fiber extensions. This sizable cost typically ranges from $7-10 million per megawatt and is a considerable barrier to entry, particularly if building speculatively. These initial costs end up as a small fraction of the overall operating expenditure over the life of the building, as the consistent need for increasing power over several phases of expansion can lead to spiraling power needs. As noted in other sections of this report, new technology (or the better use of current technology) from artificial intelligence to predict workload needs, and more sophisticated forms of cooling, can assist with saving power costs, particularly for the increasingly dense workloads favored by the heaviest users. Those fortunate enough to operate in certain climates are also able to utilize free cooling in the evenings, with many of these cooler areas also using lower- cost hydropower. The benefit of renewable hydropower cannot be understated; not only does this assist in lowering the total carbon footprint of a data center, it also is available

Power costs can tally well into nine figures over the life of the largest assets, providing an operational cost advantage to markets with cheaper power. and large-sized U.S. markets then follow, albeit with a higher mix of non-renewable energy for most of them. Direct costs for power will continue to be a debate moving forward against the indirect costs, with clients increasingly required to decide what they will be willing to pay for. at far lower cost than other methods with a concurrently lower cost of total operating expenditure. Four of the top six markets ranking lowest in power cost utilize hydropower to some degree, with Montreal leading the way and Reykjavik, Portland, and Vancouver also included. Warsaw and Johannesburg both offer low direct power cost, albeit with indirect costs in the form of a lack of renewable energy and certain grid reliability concerns (in the case of Johannesburg). Several middle-

Top Markets

Montreal Reykjavik Warsaw Johannesburg Portland Vancouver Salt Lake City Dallas

Atlanta Seattle

30 / CUSHMAN & WAKEFIELD