Data Center Development Cost Guide 2025

DATA CENTER DEVELOPMENT COST GUIDE 2025

DATA CENTER LABOR AVAILABILITY

UNITED STATES DATA CENTER MARKETS: MEDIAN HOURLY LABOR COST

Columbus; $44

San Francisco; $63

Nashville; $42 Reno; $39

Denver; $51

Information Technology

Seattle; $60

Dallas; $35 Nashville; $36

San Francisco; $57

Electrical Engineers & Technicians

Minneapolis; $45

Reno; $31

Seattle; $56

Dallas; $33

San Francisco; $49

Technicians

Nashville; $32 Reno; $31

Kansas City; $41

Seattle; $52

Dallas; $25 Nashville; $25

San Francisco; $45

Construction

Minneapolis; $39 Boston; $42

Construction

Wenatchee; $31

$10

$20

$30

$40

$50

$60

$70

$80

Salt Lake City

12.2

15K

Established Emerging Tertiary

Reno

11.7

Denver

11.2

34K

Note: Geographies limited to established, emerging and tertiary data center markets Source: Cushman & Wakefield Research, Lightcast

Des Moines

11.0

Charlotte Phoenix

10.2

28K

9.9

50K

Austin

9.6

24K

The high demand for data center occupations has intensified competition for the specialized talent needed to run these facilities, driving wages higher. Although data centers don’t command a large labor force to maintain operations, the need for 24/7 coverage increases workforce requirements and, ultimately, labor costs. The diverse geographies where these assets are being developed results in varying labor costs across occupational segments. However, across markets, internet technology professionals consistently command the highest compensation across markets, with hourly wages ranging from $39 to $63. San Francisco, one of the most expensive

U.S. cities, ranked as the costliest market in every labor segment except technicians, while nearby Reno offered the lowest wages in all categories except construction. Overall, labor costs in San Francisco were 30% above the average, reflecting the region’s higher cost of living and competition for technology talent from Silicon Valley. Conversely, Reno provided an 18% cost advantage for local labor. Unsurprisingly, established markets reported higher labor costs compared to emerging and tertiary markets. 3

Wenatchee Indianapolis

8.7

19K

8.6

Las Vegas Nashville

8.5

18K

8.3 8.1

19K

Seattle Dallas

67K

7.9

32K

7.7

19K

Portland

7.5

17K

Columbus Minneapolis Kansas City

7.4

28K

7.2 7.1 7.1

16K

46K

Washington DC

35K

Boston Atlanta

6.2

39K

5.9

27K

San Francisco

5.5

52K

New York Chicago

4.9

100K

4.6

59K

Los Angeles

Total Resident Workers Resident Workers Per 1,000 Capita

3 Availability of labor significantly impacts cost. In some markets, utility/technician tradesmen are in short supply and are experiencing an aging workforce.

Source: Cushman & Wakefield Research, Lightcast

18

19

Cushman & Wakefield