Data Center Development Cost Guide 2025

DATA CENTER DEVELOPMENT COST GUIDE 2025

RISING CONSTRUCTION COSTS

UNITED STATES: DATA CENTER DEVELOPMENT BREAKDOWN

Data Center Construction Costs Breakdown

Lead Time (Weeks)

may require project managers to adjust labor schedules, potentially leading to increased labor costs due to extended work periods or overtime. In addition, fluctuating input costs during prolonged lead times for materials and equipment frequently require budget revisions. For example, uninterruptible power supplies (UPS) ordered at the end of the third quarter in 2023 would cost 15% more by their delivery 28-36 weeks later. While lead times have improved compared to the immediate post critical to data center development. Switchgear—essential for ensuring uninterrupted power supply, load balancing, fault protection and overall operational stability of the datacenter—has the longest lead times, averaging 46-48 weeks. Generators and chillers are also difficult to obtain, with lead times exceeding 30 weeks and, in some cases, stretching up to 110 weeks. 2 pandemic years, they remain elevated for certain materials

Switchgear Chillers

46

48

DC Shell ($/SF) 21%

30 30

40

Generators CRAHS DM CRAHS ER Pre Fab Skids UPS CX Boards Transformers PDUs Battery Cabinets Copper Wire Steel Light Fixtures Glass Aluminium Insulation Lumber PVC Plumbing Gypsum

38

28

36

Site ($/ Developed Acre) 10%

28 28 28 28

36 36 36 36

White Space Buildout ($/MW) 10%

28

36

24 24

32 32

Critical Capacity ($/MW) 53%

23

25

12

14

Back Of House ($/SF) 4%

11

13

7

9

5

7

Office Buildout ($/SF) 2%

3

5

1

3

1

3

Most data center construction costs are attributed to building out the facility’s critical capacity, while office space accounts for the least capital investment. Extended lead times affect data center development by influencing scheduling, cost variation and resource allocation. Prolonged lead times for materials or equipment can delay project timelines, causing a chain reaction across all construction stages. Such delays

1

3 3

Concrete 0 2 1

Source: Cushman & Wakefield Research, Turton Bond

2 HITT, DPR, and Clune, in addition to Turton Bond, have contributed data on construction materials, labor pricing, and lead time data.

6

7

Cushman & Wakefield