Asia Pacific Data Construction Cost Guide 2025

CONSTRUCTION COST GUIDE

2025

Cushman & Wakefield’s Data Centre Construction Cost Guide 2025 provides a comprehensive analysis of both land purchase and data centre construction costs across Asia Pacific and a look at some of the key themes shaping the sector

Last updated: 15 January 2025

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26 data centre locations, including 90 clusters, featured across the region.

Data Centre Thought Leadership

Cushman & Wakefield is recognised as a leader in first-to-market data centre thought leadership with quality market intelligence released regularly each year. We have a number of signature reports that will provide data centre operators, developers and investors insights to help develop their data centre strategies across Asia Pacific.

 OSAKA

 TOKYO

 BEIJING

 SHANGHAI

 TAIPEI

 HONG KONG

Click on the text below to go to each section

Asia Pacific Capabilities Brochure Learn more about our data centre capabilities across Asia Pacific, including regional and local market insights, our services, key client case studies and contacts.

 BUSAN

 SEOUL

 BANGKOK

 GREATER MANILA

 DELHI

 CHENNAI  MUMBAI

 BANGALORE  HYDERABAD

Asia Pacific Data Centre Updates Our biannual market updates provides comprehensive summaries of notable cities across the region.

 GREATER KUALA LUMPUR  JOHOR BAHRU

 BATAM

 GREATER JAKARTA

Global Data Centre Market Comparison An annual signature Cushman & Wakefield report that explores a unique way to assess and score 63 global primary and emerging data centre markets utilising 13 criteria.

 SINGAPORE

 SYDNEY  MELBOURNE

 PERTH

 HO CHI MINH CITY

 HANOI

 AUCKLAND

CUSHMAN & WAKEFIELD | ASIA PACIFIC - DATA CENTRE CONSTRUCTION COST GUIDE 2025

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James B. Normandale Author & Head of Technical Services, Data Centre Group, Asia Pacific

Asia Pacific Market Overview

Regional Land and Construction Cost Key Findings

Click on the text below to go to each section

This year’s report collates the most comprehensive land and construction cost data available in the market and provides an overview of some of the key themes impacting the sector.

 Locations Covered  Executive Summary  Key Themes in the Asia Pacific Data Centre Market #1 Power Availability & Cost #2 The Impact of AI #3 Investment Trends  Specifications & Key Assumptions  Individual Market Cost Index  Regional Development Cost Scenarios  Regional Land Cost Index  Regional Construction Cost Index  Construction Cost Market Movers

Regional construction costs continue to rise, but at a slower pace. Average construction cost inflation across Asia Pacific in 2024-2025 is 3.8%, down from 4.9% in 2023-2024. The top five most expensive construction markets remained unchanged from last year, albeit ranked differently. Only India and Australia saw the rate of construction inflation increase, in both cases primarily driven by strong demand from both local and international players. In all other markets, the rate of inflation slowed or plateaued as pandemic-induced supply chain disruption continued to unwind. India, Australia and Indonesia saw the greatest increase in construction costs (5%); Hong Kong China saw the slowest rate of inflation (2.1%). Across the region, powered greenfield sites suitable for data centres have become increasingly scarce, driving land prices higher.

It has been another year of strong growth for the data centre sector across Asia Pacific, driven by relentless digitization and accelerated by demographic tailwinds including a growing middle class and population growth. The ongoing maturation of the sector is evident in the build out now underway in emerging markets including Indonesia and Malaysia, while demand in established markets like Australia, Japan and South Korea remains strong. While Artificial Intelligence (AI) is yet to make a material impact in the region, both the scale of new developments and rack densities have increased in anticipation of the additional compute power AI will require. From an investment perspective, 2024 was punctuated by the Blackstone-led consortium’s $16 billion purchase of AirTrunk, which perhaps signalled the sector’s growth trajectory and the expectation of ongoing demand more clearly than any other indicator.

 Australia  Greater China  India  Indonesia

 Japan  Malaysia  New Zealand  Philippines

 Singapore  South Korea

 Thailand  Vietnam

 Appendix

This scarcity of land has encouraged a move towards innovative redevelopment of brownfield sites.

CUSHMAN & WAKEFIELD | ASIA PACIFIC - DATA CENTRE CONSTRUCTION COST GUIDE 2025

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OPERATIONAL CAPACITY PER POPULATION

In the following pages, we take a closer look at three of the key themes impacting data centre construction:

Markets with >100,000 People / MW

Tom Gibson Head of Project & Development Services, Sustainability & ESG, and Data Centre Group, Asia Pacific

1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000

 The sector’s relentless growth continues to attract investment at scale, funding ongoing development despite increasing land and construction costs.  While mature markets remain the primary investment destinations, emerging markets are attracting increasing interest—especially those where streamlined ownership structures and incentives are available.  Investment is driving rapid evolution: research into cooling and construction techniques that will deliver cost savings, compress delivery timelines and drive operational efficiencies continues at pace.  The pool of skilled labour available for both the construction and operation of data centres remains relatively shallow across most markets, and particularly so in emerging markets where adjacent talent pools— those capable of building other large-scale industrial and/or uptime-sensitive structures—may also be small.

The ongoing maturation of the data centre sector continues to bring both opportunities and challenges to local markets and the region as a whole. In compiling the data for this report, the following themes stood out.  Power availability continues to top the list of challenges in almost all locations, with some mature markets now facing wait times of around seven years.  Alongside this challenge, demand for renewable power continues to grow, driven by interconnected pressures including cost, power grid decarbonization, regulation and reputation.  Rather than slowing development, power constraints are driving innovative solutions and brownfield redevelopments; nuclear alternatives are increasingly being considered where regulation permits.  Along with their demand for power, data centres’ water and land use has seen resistance from community groups and governments, with early signs that increased regulation could be forthcoming in some markets.  Greener data centres are coming. More sustainable materials that reduce the embodied carbon of concrete and steel are being trialled and renewable power remains the gold standard.

- 200,000 400,000 600,000 800,000

Power Availability & Cost

India

China

Vietnam

Malaysia

Thailand

Indonesia

Philippines

Markets with < 100,000 People / MW

- 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000

The Impact of AI

Underpinning all of these key themes is the population-to-capacity differential between Asia Pacific and other key markets. This remains the greatest driver of data centre development across Asia Pacific.

Investment Trends

Japan

Taiwan

Australia

Singapore

CUSHMAN & WAKEFIELD | ASIA PACIFIC - DATA CENTRE CONSTRUCTION COST GUIDE 2025

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South Korea

New Zealand

United States

Hong Kong SAR

United Kingdom

Pritesh Swamy Head, Research & Insights, Data Centre Group, Asia Pacific

ACROSS THE REGION: THE POWER COST OF A 20MW DATA CENTRE (PUE 1.5)

Power is essential for data centres The International Energy Agency (IEA) estimates that Asia Pacific nations cumulatively account for about 50% of global power generation. The IEA has also reported a 246% increase in power production in Asia Pacific between 2000 and 2022. While the industrial sector remains the largest consumer of power, and rising temperatures have accelerated power demand for cooling requirements, data centres are rapidly increasing their share of power consumption: globally, they are forecast to consume over 1,000 terawatt hours by 2026. The demand for power has outstripped the pace of power generation across most markets, leading to lengthy wait times for new greenfield data centre builds. In many markets, new power connections taking between 18 and 36 months have become the norm, while other markets have paused the allocation process or have timelines that extend between five and seven years. Owing to such challenges, powered land is attracting a significant sales premium. Operators are also starting to explore alternative locations with power availability for their new builds.

The relationship between scale, PUE and cost Power costs, while a pass-through for colocation data centre operators, is a significant component of the operating expenses for end users. The power tariff in Asia Pacific in November 2024 averaged 11.5 cents per kilowatt hour, resulting in an annual power cost of $30.2 million to run a 20 MW IT workload at a Power Usage Effectiveness (PUE) of 1.5. (Note there is a 2.7x difference between the most and least expensive power tariffs across the region.) Per Cushman & Wakefield estimates, a 0.1 reduction in PUE would result in $1.9 million in annual power cost savings. This cost variable has implications for location strategy and data centre networks, particularly as AI heralds increased workload deployment.

Tariff USD (cents)

Annual Power Cost (millions)

Monthly Power Cost $/kW*

Sub-Region

Market

SEA

Singapore

19.19

50.4

138

ANZ

New Zealand (Auckland)

14.94

39.3

108

North Asia

Japan (Tokyo)

14.22

37.4

102

Gr. China

Taiwan (Taipei)

13.81

36.3

99

SEA

Philippines (Metro Manila)

13.59

35.7

98

SEA

Indonesia (Jakarta)

12.23

32.1

88

ANZ

Australia (Sydney)

11.97

31.5

86

SEA

Thailand (Bangkok)

10.48

27.5

75

Gr. China

Chinese Mainland (Shanghai)

10.09

26.5

73

Gr. China

Hong Kong (Kowloon)

9.82

25.8

71

North Asia

South Korea (Seoul)

9.14

24.0

66

SEA

Malaysia (Kuala Lumpur)

7.32

19.2

53

SEA

Vietnam (HCMC)

7.21

18.9

52

“Per Cushman & Wakefield estimates, a 0.1 reduction in PUE would result in $1.9 million in annual power cost savings.”

SEA

India (Mumbai)

6.71

17.6

48

AVERAGE

11.48

30.2

83

Notes: •

• •

• • •

CUSHMAN & WAKEFIELD | ASIA PACIFIC - DATA CENTRE CONSTRUCTION COST GUIDE 2025

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The cost of power is one of the most significant operating expenses of a data centre. While power availability varies across markets, a lack of power doesn’t necessarily mean a lack of construction, with developers increasingly looking to brownfield redevelopment, and research into alternative power sources continuing at pace.

<2% >8%

>2yrs

<1yrs

<10c / kWh >15c / kWh

<2% >8%

>2yrs

<1yrs

<10c / kWh >15c / kWh

POWER AVAILABILITY

POWER WAIT TIME

POWER TARIFF

POWER AVAILABILITY

POWER WAIT TIME

POWER TARIFF

MARKET

COMMENTARY

MARKET

COMMENTARY

• India has the second largest installed capacity in APAC; and the second largest renewable power capacity. • State governments including Tamil Nadu, Telangana, and Maharashtra have streamlined the power wait time to under 270 days, depending on requirements. • Most power in data centre clusters in Jakarta has already been committed; obtaining new power connections can take up to 3 years • Power supply needs augmentation for new data centre development to continue • 80% of the power supply comes from fossil fuels. • Johor is the fastest growing market in APAC with over 3 GW of potential development pipeline (Kuala Lumpur has 1.5 GW) • Such extensive development has caused authorities to reject around one-third of recent power applications in Johor. • Philippines’ installed power capacity of 28 GW is one of the lowest in APAC, and the cause of frequent power outages • There has been a sharp rise in power tariffs during the last 18 months, Manila’s 13.6 cents/kWh is almost two times that of some cities in India and Malaysia. • Singapore is the most constrained market for new power applications, with a dedicated process (the Data Centre – Call for Application or DC-CFA) to manage applications in place since 2022 • Singapore’s 19.19 cents/kWh tariff makes it one of the three most expensive markets in APAC. • New power connections can take up to 2 years based on location • Bureaucracy and infrastructure constraints have delayed power supply timelines, especially in industrial zones in Bangkok • However, the power authority is prepared to assist with the power extension process, making it convenient for operators. • Frequent power outages are common in Vietnam, as the national power grid struggles to keep up with peak demand • The government is working to add ~6.6 GW of additional power capacity, but this could take several years.

• Continual investment in modern grid infrastructure to shorten power wait times • It can take 2 to 3 years for new power connections in key locations such as Sydney • The market remains a strategic APAC business location for DC operators. • ~60% of power comes from hydro; reduced rainfall can stress the power network • New connection timeline can be under six months thanks to low data centre capacity • 14.9 cents/kWh power tariff is among top 5 most expensive power markets. • Differentiated tariff plan to improve power consumption efficiency will be rolled out by 2026 • Data centres operating under PUE of 1.35 in Beijing and 1.25 in Shanghai will benefit from lower tariffs and fiscal incentives; higher PUEs may face penalties • The new connection process is efficient and easy to obtain. • Power supply for new builds can take over 3 years, depending on requirements • Recent announcements on renewable power commitment by large American hyperscaler may attract investments to improve the green energy supply in Hong Kong. • Taiwan has stopped approving power for >5 MW data centers in the region north of Taoyuan owing to insufficient power supply • Power connections for new data centres can take over 3 years. • Seoul’s tarrif is among the more affordable however, a lack of suitable land parcels and power availability make it a difficult market to enter • Obtaining power supply for new builds can take up to 2 years in key data centre clusters. • 18 new substations are planned by 2030 to meet power demand, but Tokyo’s power shortage is constraining current DC development. Operators are evaluating alternative locations where power is available such as Tsukuba, Osaka, etc. • Nuclear power operations are being considered by developers as Japan continues to unwind a ban on nuclear power generation put in place following the Fukushima incident in 2011.

INDIA (MUMBAI)

AUSTRALIA (SYDNEY)

INDIA

NEW ZEALAND (AUCKLAND)

ANZ

INDONESIA (JAKARTA)

MALAYSIA (KUALA LUMPUR)

CHINESE MAINLAND (SHANGHAI)

PHILIPPINES (MANILA)

HONG KONG

GREATER CHINA

TAIWAN (TAIPEI)

SINGAPORE

SOUTHEAST ASIA

SOUTH KOREA (SEOUL)

THAILAND (BANGKOK)

NORTH ASIA JAPAN (TOKYO)

VIETNAM (HO CHI MINH CITY)

Notes: •

•

•

CUSHMAN & WAKEFIELD | ASIA PACIFIC - DATA CENTRE CONSTRUCTION COST GUIDE 2025

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Vivek Dahiya Head of Advisory & Transaction Services, Data Centre Group, Asia Pacific

INTERNATIONAL MONETARY FUND ASIA PACIFIC AI READINESS COMPARISON

0.9

0.25

It is likely to be several more years before the full impact of AI is felt in Asia Pacific. The region trails both the United States and Europe in terms of AI deployment, although several operators have acquired land parcels and are actively planning their AI data centres. Regardless, lessons from other regions provide some early insights. Location Theoretically, learning AI data centres are location agnostic. But the challenges of establishing new infrastructure in remote locations means they are likely to continue being built in or around existing infrastructure and talent. To avoid cannibalizing the power of existing availability zones, proximate industrial sites could be suitable locations for learning AI data centres. Resource Availability The International Monetary Fund (IMF) has ranked major Asia Pacific markets including Singapore, Hong Kong, South Korea, Japan and Australia among the top 20 markets in both the AI Preparedness Index and the Digital

Infrastructure Index. However, challenges with land and/or power availability, especially in key data centre clusters, could mean operators look to alternative, emerging locations that have the power and water availability to support their AI deployments and long-term scalability. Data Sovereignty The introduction of data sovereignty laws could be one of the greatest challenges to AI deployment. It is likely that such laws will make it challenging to locate learning data centres in a single market. Operators may also need to comply with data reporting and sharing regulations introduced by respective governments. These laws are likely to significantly impact data centre location strategy. Design & Construction In response to the rapid uptake expected from AI, a number of data centres that were in either the planning or early development stages have since been modified into so-called ‘hybrid’ data centres capable of accommodating both cloud and AI requirements. These hybrid designs may

include greater loading on alternate floors and/or increased ceiling heights to house new cooling requirements. These accommodations have been made somewhat in advance of the cooling technologies themselves. While several forms of liquid cooling, including immersion and direct to-chip, are currently available, these technologies are yet to achieve full confidence among data centre operators and users, with research into their durability, maintenance, leakage and compatibility continuing. Obsolescence Despite the rapidly evolving landscape, the good news is that data centres built post-2020 remain largely relevant today. Continued demand from cloud firms and enterprise clients minimise the risk of obsolescence—a real consideration for investors given the significant amounts of capital involved in the sector. As technology continues to evolve, current best practice is to build for agility—the ability to consume and process the maximum number of megawatts and to allow end-users to deploy the hardware to support AI workloads.

0.8

0.2

0.7

0.6

0.15

0.5

0.4

0.1

0.3

0.2

0.05

0.1

0

0

India

Japan

Vietnam

Malaysia

Thailand

Australia

Indonesia

Singapore

Philippines

South Korea

New Zealand

Taiwan, China

China Mainland

Hong Kong, China

AI Preparedness Index

Digital Infrastructure Index

Source:

CUSHMAN & WAKEFIELD | ASIA PACIFIC - DATA CENTRE CONSTRUCTION COST GUIDE 2025

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Gordon Marsden Head of Capital Markets, Asia Pacific

Annual Colocation Rental Opportunity APAC

ESTIMATED COST OF DEVELOPMENT PIPELINE PER MARKET (USD BILLIONS)

together a number of varied positions. Although some of these plays will not be successful, we will in time arrive at a consolidated number of regional and/or global players holding strong client relationships through either operating businesses or through prime leases. Transaction activity has begun At the asset level (as distinct from the entity / operator level), we have begun to see an uptick in transaction activity in Japan, Korea and Singapore. Mostly, these are legacy data centres that are more than likely to have leaned into enterprise tenants and colocation operators (rather than hyperscale), and which are not necessarily representative of today’s power demands and specifications. These transactions have nonetheless provided some clarity around pricing and as a result, we have seen a flurry of valuation activity reflecting notable entity-level transactions as well as these one-off trades. Navigating the risk / return A long-term lease might see embedded growth ahead of inflation, but it certainly won’t enjoy the often-quoted 20%+ CAGR growth seen in the broader digital economy. Investments sitting higher up the risk curve might take the form of operator exposure (OpCo or OpCo-PropCo), a shell & core developer leaning into the provision of a powered shell with some level of involvement in mechanical, electrical and plumbing (MEP) systems, or a speculative site acquisition with the potential to secure the necessary power, water and fibre to satisfy the sale requirements for data centre construction in future. The variety of opinions on how to capture the sector’s growth is substantial.

CUSHMAN & WAKEFIELD | ASIA PACIFIC - DATA CENTRE CONSTRUCTION COST GUIDE 2025 Exposure and consolidation From an investment perspective, two things are clear today (and they are not mutually exclusive). Firstly, there is a vast array of participants with ready capital seeking exposure to development. Secondly, there is an attitude of needing to make an investment to be at the table. These investments are rapidly evolving from smaller plays on, for example, a piece of land or a nascent operator, to larger scale deployments requiring consortiums that bring At the end of Q2 2024, there was over 13.5 GW of colocation capacity either under construction or in the planning stages in Asia Pacific, with about 32% of this upcoming stock located within five cities: Sydney, Tokyo, Singapore, Hong Kong and Mumbai. This is in addition to the hundreds of acres land banked by operators for future builds. By Cushman & Wakefield estimates, this development pipeline (excluding land banking) equates to a capital requirement of over $125 billion and provides an opportunity to generate over $14 billion in annual colocation rent. These new builds can potentially achieve 13% to 16% yield-on-cost ratios for developers—figures that have well and truly captured the attention of investors who are closely monitoring how the sector will be funded and held in the long term. “By Cushman & Wakefield estimates, this development pipeline equates to a capital requirement of over $125 billion and provides an opportunity to generate over $14 billion in annual colocation rent.”

0.0

10.0

20.0

30.0

40.0

Japan Malaysia India Australia China, Mainland South Korea Hong Kong SAR Indonesia Thailand Singapore New Zealand Philippines China, Taiwan Vietnam

34.1

17.4

Top 5 cities

17.1

15.2 15.0

8.2

5.1 5.1

Estimated Gross Yield on Cost APAC

2.7

2.3

1.1 1.1

0.4 0.3

Top 5 cities

Notes: • The above estimates are high-level calculations based on 2024 construction rates. The actual costs vary across markets and escalate y-o-y based on inflation and other economic parameters. The calculations and assumptions used in this analysis are only for theoretical comparison. • The average construction cost is based on the mid-range specification for the Multi-Level Hyperscaler Data Centre Development (10 Acres Approx. + 50 MW Operational Load) for respective markets. • The average colocation rent is factored at $120/kW/month for Sydney, Tokyo, Mumbai, Hong Kong and Singapore; other locations at $100/kW/month.

8

The low, mid and high range categories referenced in the following pages referencethe specifications and key assumptions for base build, fit out and land models below. The low, mid and high-cost ranges are provided as a benchmark across the various categories.

FIT OUT

BASE BUILD

Model Assumption Category

Low Specification

Mid Specification

High Specification

Model Assumption Category

Low Specification

Mid Specification

High Specification

Quality of Construction (Incl. Materials & Supplier Spec.) Design For Maintenance Without Disruption

Quality of Construction (Incl. Materials & Supplier Spec.)

$-$$ Average quality

$$-$$$ Good quality

$$$$ Prestige quality

$-$$ Average quality

$$-$$$ Good quality

$$$$ Prestige quality

Quality vs Performance

A good cost-to performance ratio

A premium dependable facility

A fault-tolerant facility ideal for consistently

No

Yes

Yes

Redundancy & Operational Standard

Tier 2

Tier 3

Tier 3-4

Compartmentalisation

No

Yes

Yes

Single system non-redundant

Multiple redundancy (1 x active + 1 x passive)

Multiple (2 x active) (Zero points of failure)

Cabinets / Cages / Private Suites

Source Paths

Space

Cabinets

Cabinets / Cages

Carrier Neutral

No

Yes

Yes

Services

Low Density

Mid Density

High Density / Private AI

RackPower Density

10-30kW Per rack

10-50 kW Per rack

10-125+ kW Per rack

Floor Loading

Low Capacity

Mid-High Capacity

Mid-High Capacity

Multiple paths, multiple substaions 2 Diverse Paths From 2 Substations 2 Diverse paths from 1-2 mains

Coverage Interconnection (If Applicable)

Cross Connect – Cross Link DC-DC

Cross Connect – Cross Link DC-DC

Power Source

1 path from 1 substation

Multiple paths 1-2 substations

No

2 Diverse paths From 1-2 Substations 2 Diverse paths From 1-2 mains

Power Source Redundancy

1 path From 1 Substation

Water Source Redundancy

1 path from 1 mains

LAND

Model Assumption Category

Low Range

Mid Range

High Range

Generator Redundancy

N-N+2

N+1, block redundant-2N

N+1, block redundant – 2N+1

$-$$ Average quality

$$-$$$ Good quality

$$$$ Prestige quality

Cooling Redundancy

N-N+2

N+2

N+2-2N+1

Land Price Quality

UPS Redundancy

N-N+2

N+1, block redundant-2N

N+1, block redundant – 2N+1

Prime Location, High Demand, Infrastructure Available

Remote, Low Demand, Minimal Infrastructure

Suburban, Moderate Demand, Infrastructure Available

Location

Cooling Technology

Air Cooled

Air Cooled

Liquid Cooling

CUSHMAN & WAKEFIELD | ASIA PACIFIC - DATA CENTRE CONSTRUCTION COST GUIDE 2025

ALL CLUSTER COMPARISON (LOW - HIGH RANGE COSTS, RANKED BY MID RANGE)

Low $ / SQM

Mid $ / SQM

High $ / SQM

Low $ / SQM

Mid $ / SQM

High $ / SQM

Country

City

Cluster

Country

City

Cluster

South Korea Taiwan, China

India

Seoul Taipei

Gangnam

$28,448 $9,746 $7,519 $4,871 $3,594 $4,511 $6,426 $5,013 $4,927 $5,173 $1,826 $3,991 $3,695 $1,136 $3,547 $3,008 $1,499 $2,048 $2,520 $2,506 $453

$59,266 $13,923 $11,278 $9,393 $8,750 $7,268 $6,962 $6,266 $6,105 $5,912 $5,256 $4,936 $4,434 $4,138 $4,135 $3,991 $3,759 $3,749 $3,151 $3,151 $3,133 $2,607 $2,433 $2,363 $2,170 $2,035

$148,641 $18,635 $15,038 $13,916 $12,565 $10,025 $7,390 $7,519 $7,390 $6,651 $10,381 $11,768 $4,877 $4,582 $11,595 $4,434 $4,511 $5,355 $3,781 $3,939 $3,759 $9,071 $2,650 $2,838 $2,894 $3,320 $2,217 $10,194 $2,990 $2,772 $2,005 $2,055 $2,892 $2,999 $2,616 $1,568 $1,754 $1,504 $1,542 $1,352 $1,583 $1,343 $1,285 $1,006 $1,039

Chennai

Ambattur

$503 $548 $703 $731 $343 $465 $514 $570 $357 $397 $382 $216 $305 $306 $261 $213 $178 $240 $235 $202 $129 $187 $191 $84 $156 $174 $174 $165 $163 $149 $139 $146 $110 $110 $118

$857 $823 $779 $771 $750 $725 $696 $637 $606 $466 $453 $379 $359 $349 $345 $344 $292 $281 $272 $268 $257 $246 $234 $231 $229 $213 $209 $205 $204 $196 $176 $174 $172 $141 $130 $126

$1,339 $1,097

Singapore Australia

Neihu District Central Tokyo Central Jakarta

Singapore Melbourne Auckland Melbourne Delhi (NCR) Auckland Melbourne Chennai

Loyang

Land costs have soared across most of the region. In mature markets, a scarcity of suitable powered sites has driven prices to record highs. Globally, land banking of increasingly large sites continues, but as the number of suitable sites dwindles operators are also turning to alternative ways to access power infrastructure, including decommissioned power plants and existing industrial estates. Mature markets occupy the 18 most expensive land cost clusters with the single exception of Central Jakarta, which is the fourth most expensive cluster thanks to strong demand. Unsurprisingly, inner city clusters dominate the most expensive rankings, although transaction volumes are relatively limited. While enterprise demand for the proximity and familiarity offered by inner city locations remains, increasing digitization and data centre scale is likely to see demand migrate to adjacent, more affordable areas. It should be noted that our methodology and source data for calculating land costs has been refined from last year’s edition to deliver more accurate rankings. This year, we have assessed up to nine clusters within each city and further refined the land parcels to those suited for data centres. The overall results have been ranked by cluster rather than by city to prevent these inner-city colo and retail clusters unduly influencing city-wide land costs. To account for this change in methodology, land costs should be assessed on a point-in-time basis, rather than year-on-year.

Japan

Greater Tokyo Greater Jakarta

Eastern Melbourne

$963 $872

Indonesia

New Zealand

Takanini Siruseri

South Korea

India

Seoul Osaka Taipei

South West Seoul

$1,339

Japan

Australia

Central Osaka

Northern Melbourne

$919

Taiwan, China

India

Sanchong District

Noida

$1,928

Japan

New Zealand

Greater Tokyo

Kawasaki

Westgate

$704 $719 $536 $519 $541 $413 $393 $437 $515 $406 $336 $644 $482 $322 $375 $279 $354 $252 $341 $243 $237 $243 $228 $204 $209 $198 $171 $149 $204 $166 $186

Taiwan, China

Australia

Taipei

Banqiao District Hong Kong Island

Western Melbourne

Hong Kong, China

Chinese Mainland

Hong Kong

Greater Beijing Kuala Lumpur

Changping

South Korea South Korea

Malaysia Australia

Seoul Seoul

Incheon / West Gyeonggi

Cyberjaya and Greater Selangor

South Gyeonggi

Perth

Northbridge - EW Fangshan - Daxing Pulai / Nusajaya

Hong Kong, China Hong Kong, China

Chinese Mainland

Hong Kong Hong Kong

Sha Tin

Greater Beijing

Malaysia

Tsuen Wan Seongnam

Johor Bahru

South Korea

Chinese Mainland

Seoul

Greater Beijing Ho Chi Minh City

Shunyi

Hong Kong, China

Vietnam Australia Vietnam

Hong Kong

Fanling

HCMC CBD - Tan ThuanEPZ

Japan

Greater Tokyo

Sagamihara

Perth

Malaga - Wangara

Taiwan, China

Taipei

Taoyuan

Ho Chi Minh City Greater Shanghai

Rest of HCMC

India India

Chinese Mainland

Hyderabad

West Hyderabad

Pujiang - Zhoupu

India

Mumbai

Powai

Hyderabad Johor Bahru

South

Japan

Malaysia

Greater Tokyo

Saitama Dong-gu

Kulai & Sedenak

South Korea

India

Busan

$853

Mumbai

Panvel

Australia

Chinese Mainland Chinese Mainland

Sydney

Sydney CBD Gurugram Paya Lebar

$2,163 $1,518 $1,447 $1,178 $1,478

Greater Shanghai Greater Beijing

South Shanghai Beijing E-Town

India

Delhi (NCR)

Singapore

Thailand

Singapore

Bangkok

EEC

India

Chinese Mainland

Mumbai

Thane

Greater Shanghai

Shanghai Baoshan & Jiading

Hong Kong, China

Indonesia Indonesia Philippines Philippines Philippines Indonesia Philippines Philippines Philippines

Hong Kong

Tseung Kwan O Rest of Busan

$1,921 $1,892 $1,868 $1,832 $1,629 $1,622 $1,607 $1,553 $1,495 $1,406 $1,253 $1,253 $1,157 $1,082 $1,037 $1,007 $1,003

Batam

Central Batam

South Korea

Busan

$521 $747 $955

Greater Jakarta

Bekasi Laguna

Thailand Thailand

Bangkok Bangkok

East Bangkok / Samut Prakan

Manila Manila Manila Manila Manila Manila

Bangkok

Cavite

Japan

Osaka

North Osaka North Shore

$1,253 $1,460

Batangas Karawang Pampanga

Australia

Sydney

Greater Jakarta

India India

Bangalore (Bengaluru) Bangalore (Bengaluru)

Peripheral East Peripheral South

$525 $945 $747

Cebu Davao Tianjin

Thailand Australia

Bangkok Sydney

Nonthaburi

Chinese Mainland Chinese Mainland Chinese Mainland Chinese Mainland Chinese Mainland Chinese Mainland Chinese Mainland Chinese Mainland Vietnam Vietnam

Western Sydney

$1,298

Greater Beijing Greater Shanghai Greater Beijing Greater Shanghai Greater Shanghai Ho Chi Minh City Greater Beijing Greater Beijing Greater Beijing Hanoi

$95 $84 $63 $87 $78 $56 $76 $42 $37 $36

Japan Japan

Greater Tokyo

Inzai

$752

Jiaxing-Pinghu

$115 $112

Osaka

Keihanna Science City

$1,003

Langfang

Singapore Australia Malaysia Singapore

Singapore

Sunview - Jurong

$771 $919 $579 $672 $465 $905 $771

Hoa Lac Hi-Tech Park

$109 $102 $102 $102

$131 $311

Sydney

Greater Western Sydney

Changshu Nantong

Johor Bahru

Johor Bahru (City Fringe and City Centre)

$655 $125 $146 $105

Singapore

Bedok - Tampines

Saigon Hi-tech Park

Zhangjiakou

$95 $71 $48

South Korea New Zealand New Zealand

Busan

Gurang Dong

Huailai

Auckland Auckland

Central

$939 $872

Zhangbei

$56

North

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SOUTH KOREA (3%) $9,504,758 / MW ($7,503,756 -$11,505,759)

REGIONAL COST PER MEGAWATT COMPARISON (RANKED BY MID RANGE COST, BASED ON MID SPECIFICATION BUILD)

JAPAN (4%) $13,235,400 / MW ($10,449,000 -$16,021,800 / MW)

Market

Low $ / MW Mid $ / MW High $ / MW

Top 5 Markets Construction costs continued to rise across Asia Pacific in 2024, increasing by an average of 3.8% year-on-year. The five most expensive markets remained constant, albeit ranked differently to 2023/24. Australia moved to third place as ongoing Cloud interest drove greater international investment, while South Korea and Hong Kong, China both slipped one place on account of low inflation and a general market slowdown, respectively. Continued easing of supply chain stress and early signs of interest rate cuts across some markets provided relief from some of the most acute cost drivers of the past two years, although labour costs continued to increase, driven by both an ongoing shortage of skilled contractors and price increases by experienced players capitalizing on demand. As a point of reference, construction cost inflation in 2024 outstripped local Consumer Price Index (CPI) inflation rates in all markets but India, where CPI has remained stubbornly high. While the rate of construction inflation slowed across the region year-on-year, the 3.8% increase on last year’s record high base reflects the ongoing strength of demand in key markets.

Japan

$10,449,000

$13,235,400

$16,021,800

1

4

Singapore

$9,268,628

$11,740,262

$14,211,896

Australia

$7,604,533

$9,632,409

$11,660,284

South Korea

$7,503,756

$9,504,758

$11,505,759

HONG KONG, CHINA (2.1%) $9,391,444 / MW ($7,414,298 - $11,368,590)

5

Hong Kong, China

$7,414,298

$9,391,444

$11,368,590

New Zealand

$7,310,491

$9,259,955

$11,209,420

Malaysia

$6,487,788

$9,024,147

$11,560,506

2

Indonesia

$6,935,119

$8,784,484

$10,633,849

Thailand

$6,054,469

$7,668,994

$9,283,519

India

$5,626,530

$7,126,938

$8,627,346

SINGAPORE (4.5%) $11,740,262 / MW ($9,268,628 –$14,211,896 / MW)

Chinese Mainland

$5,613,504

$7,110,438

$8,607,373

3

Philippines

$5,520,000

$6,966,214

$8,412,427

Vietnam

$5,475,473

$6,935,600

$8,395,726

Taiwan, China

$5,047,296

$6,393,241

$7,739,187

AUSTRALIA(5.0%) $9,632,409 / MW ($7,604,533 -$11,660,284)

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Construction Cost Inflation 2024-2025

Market

CPI 2024

Beyond the law of supply and demand, market-specific challenges in each market have exerted additional pressure on costs. Here, we highlight markets where construction cost inflation has exceeded the regional construction inflation average of 3.8%.

Hong Kong, China

1.5% 2.1% 2.0% 1.6% 1.3% 3.3% 3.0% 2.0% 0.8% 2.7% 1.8% 2.4% 5.8%

2.1% 3.0% 3.0% 3.0% 3.0% 3.5% 3.9% 3.9% 4.0% 4.0% 4.5% 5.0% 5.0% 5.0%

Malaysia

Philippines 3.9%  The Philippines has seen high interest levels from data centre PropCo and OpCo players looking to capitalize on the country’s population-to-capacity imbalance.  Power availability and the country’s high incidence of natural disasters remain development constraints. Taiwan, China 3.9%  Interest in Taiwan, China remains high from both international and local players.  Headwinds include geopolitical tension, and land and power constraints. Chinese Mainland 4.0%  The Chinese mainland market remains among the most competitive in the region from a mid-spec build perspective, at $7,110,000 per megawatt.  Almost all activity is focused on the internal market, with mainland companies pushing forward their development programs and modifying existing stock, although a small number of international players remain active in China.  There has been some renewed interest in Greater China in anticipation of AI deployments.

Japan 4.0%  The rate of inflation in Japan was lower than expected, possibly due to pricing mechanisms regulating electric power providers.  However, an uptick in activity and newly implemented regulation capping total working hours has restrained availability of the skilled labor force, adding double digit upward pressure to unit wage cost; the weak currency remains a risk for input cost increases ahead.  Despite marginal interest rate increases, Japan’s cost of capital remains among the lowest in the region, and the country remains an attractive destination for foreign investors. Singapore 4.5%  Singapore’s construction cost inflation has dropped dramatically from last year’s 8.0%.  It remains the second most expensive market to build in, largely as a result of its geography and reliance on imports for everything from materials to power; this supply chain dependence also contributed to last year’s peak costs.  Construction activity remains muted in line with regulation.

Australia 5.0%  Australia has continued to see strong and growing demand from both local and international players.  At $9,630,000 per megawatt, it remains the third most expensive location in region for data centre development, in line with its generally high build costs.  Development coming online in the next 12 to 18 months is likely to continue pushing costs up; the current planning plateau between land purchase and construction has kept inflation stabilised at a lower rate than interest would have indicated. India 5.0%  India’s 5.0% increase reflects the significant build activity currently underway.  Abundant land and power, a deep and increasingly experienced pool of contractors and affordable entry costs are driving strong interest in this ever more investable market.

Indonesia 5.0%  Capacity spillover from Singapore into Batam has driven construction cost increases closer to rates seen in established, rather than emerging, markets.  At least three campuses are currently under construction in Batam, with ongoing interest from other Colo providers.  High levels of construction activity, combined with a limited supply of contractors, is driving price increases, despite the nascent market’s relatively inexperienced talent pool.

New Zealand South Korea

Thailand Vietnam

Philippines

Taiwan, China

Chinese Mainland

Japan

Singapore Australia

India

Indonesia

1.7%

COMPARISON OF CONSTRUCTION COST INFLATION 2023/24 TO 2024/25

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0%

2023-2024

2024-2025

CUSHMAN & WAKEFIELD | ASIA PACIFIC - DATA CENTRE CONSTRUCTION COST GUIDE 2025

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SCENARIO A - LOW RISE HYPERSCALER DATA CENTRE DEVELOPMENT (1/2)

Low Specification - Development Cost $

Medium Specification - Development Cost $

High Specification - Development Cost $

Market

Cluster

D

A

B

C = A + B

E

F = D + E

G

H

I = G + H

Land & Site Acquisition Cost

Construction Cost

Total Development Cost Land & Site Acquisition Cost

Construction Cost

Total Development Cost Land & Site Acquisition Cost

Construction Cost

Total Development Cost

$37,639,394 $56,896,758 $28,886,046 $14,443,023 $17,506,695 $74,403,453 $118,170,189 $175,066,947 $105,040,168 $15,460,464 $32,096,285 $24,701,869 $21,117,677 $5,101,824 $7,659,194 $3,396,911 $3,022,346 $2,893,186 $4,514,146 $6,296,555 $6,787,363 $12,612,484 $19,051,115 $15,111,732 $287,096,196 $418,681,953 $322,983,221 $119,623,415 $299,058,538 $398,744,717 $788,821,070 $520,101,805 $121,357,088 $76,454,965 $40,741,308 $122,830,710 $41,608,144 $9,535,200 $80,937,100 $10,402,036 $203,966,591 $95,351,998 $14,042,749 $14,078,875 $11,263,100 $394,208,503

$380,226,656 $380,226,656 $380,226,656 $380,226,656 $380,226,656 $380,226,656 $380,226,656 $380,226,656 $380,226,656 $280,675,200 $280,675,200 $280,675,200 $280,675,200 $280,675,200 $280,675,200 $280,675,200 $280,675,200 $280,675,200 $280,675,200 $280,675,200 $280,675,200 $280,675,200 $280,675,200 $280,675,200 $370,714,890 $370,714,890 $370,714,890 $370,714,890 $370,714,890 $252,364,788 $252,364,788 $252,364,788 $252,364,788 $281,326,500 $281,326,500 $281,326,500 $281,326,500 $281,326,500 $281,326,500 $281,326,500 $281,326,500 $281,326,500 $324,389,423 $324,389,423 $324,389,423 $324,389,423

$417,866,050 $437,123,414 $409,112,703 $394,669,679 $397,733,351 $454,630,109 $498,396,846 $555,293,604 $485,266,825 $296,135,664 $312,771,485 $305,377,069 $301,792,877 $285,777,024 $288,334,394 $284,072,111 $283,697,546 $283,568,386 $285,189,346 $286,971,755 $287,462,563 $293,287,684 $299,726,315 $295,786,932 $657,811,086 $789,396,843 $693,698,111 $490,338,305 $669,773,428 $651,109,505 $1,041,185,858 $772,466,593 $373,721,876 $357,781,465 $322,067,808 $404,157,210 $322,934,644 $290,861,700 $362,263,600 $291,728,536 $485,293,091 $376,678,498 $338,432,172 $338,468,298 $335,652,523 $718,597,926

$58,647,427 $63,024,101 $49,018,745 $23,634,038 $30,636,716 $87,533,474 $131,300,210 $196,950,316 $113,793,516 $18,657,177 $37,740,582 $29,061,023 $27,911,498 $9,054,123 $10,171,358 $7,697,942 $5,757,312 $3,887,719 $8,233,956 $8,253,330 $9,344,733 $17,242,873 $22,034,713 $18,902,581 $322,983,221 $478,493,660 $358,870,245 $155,510,440 $334,945,562 $494,096,714 $1,126,887,243 $563,443,622 $303,392,719 $125,691,269 $69,346,907 $191,224,097 $56,344,362 $21,670,909 $161,874,200 $19,937,236 $255,023,252 $164,698,905 $16,903,309 $16,613,073 $14,078,875 $760,259,256

$481,620,431 $481,620,431 $481,620,431 $481,620,431 $481,620,431 $481,620,431 $481,620,431 $481,620,431 $481,620,431 $355,521,920 $355,521,920 $355,521,920 $355,521,920 $355,521,920 $355,521,920 $355,521,920 $355,521,920 $355,521,920 $355,521,920 $355,521,920 $355,521,920 $355,521,920 $355,521,920 $355,521,920 $469,572,194 $469,572,194 $469,572,194 $469,572,194 $469,572,194 $319,662,065 $319,662,065 $319,662,065 $319,662,065 $356,346,900 $356,346,900 $356,346,900 $356,346,900 $356,346,900 $356,346,900 $356,346,900 $356,346,900 $356,346,900 $451,207,369 $451,207,369 $451,207,369 $451,207,369

$540,267,859 $544,644,532 $530,639,176 $505,254,469 $512,257,147 $569,153,905 $612,920,642 $678,570,747 $595,413,947 $374,179,097 $393,262,502 $384,582,943 $383,433,418 $364,576,043 $365,693,278 $363,219,862 $361,279,232 $359,409,639 $363,755,876 $363,775,250 $364,866,653 $372,764,793 $377,556,633 $374,424,501 $792,555,415 $948,065,854 $828,442,439 $625,082,634 $804,517,756 $813,758,779 $1,446,549,308 $883,105,686 $623,054,784 $482,038,169 $425,693,807 $547,570,997 $412,691,262 $378,017,809 $518,221,100 $376,284,136 $611,370,152 $521,045,805 $468,110,678 $467,820,442 $465,286,244 $1,211,466,625

$74,403,453 $77,904,792 $58,209,760 $32,825,053 $43,766,737 $109,416,842 $166,313,600 $214,457,010 $126,923,537 $28,615,420 $43,384,878 $33,420,176 $35,338,204 $15,085,900 $16,480,829 $11,856,897 $8,492,277 $4,572,268 $53,020,221 $25,186,220 $13,419,734 $27,607,972 $52,116,101 $22,570,728 $358,870,245 $538,305,368 $394,757,270 $179,435,123 $370,832,587 $598,117,075 $1,508,295,233 $598,117,075 $433,418,171 $242,714,175 $97,124,520 $229,711,630 $97,124,520 $39,007,635 $242,811,300 $20,234,275 $318,822,406 $283,279,850 $19,677,185 $19,147,270 $16,894,650 $1,126,310,009

$583,014,206 $583,014,206 $583,014,206 $583,014,206 $583,014,206 $583,014,206 $583,014,206 $583,014,206 $583,014,206 $430,368,640 $430,368,640 $430,368,640 $430,368,640 $430,368,640 $430,368,640 $430,368,640 $430,368,640 $430,368,640 $430,368,640 $430,368,640 $430,368,640 $430,368,640 $430,368,640 $430,368,640 $568,429,498 $568,429,498 $568,429,498 $568,429,498 $568,429,498 $386,959,342 $386,959,342 $386,959,342 $386,959,342 $431,367,300 $431,367,300 $431,367,300 $431,367,300 $431,367,300 $431,367,300 $431,367,300 $431,367,300 $431,367,300 $578,025,315 $578,025,315 $578,025,315 $578,025,315

$657,417,659 $660,918,998 $641,223,966 $615,839,259 $626,780,943 $692,431,048 $749,327,806 $797,471,217 $709,937,743 $458,984,060 $473,753,518 $463,788,816 $465,706,844 $445,454,540 $446,849,469 $442,225,537 $438,860,917 $434,940,908 $483,388,861 $455,554,860 $443,788,374 $457,976,612 $482,484,741 $452,939,368 $927,299,743 $1,106,734,866 $963,186,768 $747,864,621 $939,262,085 $985,076,417 $1,895,254,575 $985,076,417 $820,377,512 $674,081,475 $528,491,820 $661,078,930 $528,491,820 $470,374,935 $674,178,600 $451,601,575 $750,189,706 $714,647,150 $597,702,500 $597,172,585 $594,919,965 $1,704,335,324

Northern Melbourne Eastern Melbourne Western Melbourne Malaga - Wangara Northbridge - EW

Australia

Greater Western Sydney

North Shore Sydney CBD

scenario

Western Sydney Beijing E-Town

Changping

Fangshan - Daxing

Shunyi

Langfang

Tianjin

Zhangjiakou

Greater China, Mainland

Huailai

Zhangbei Nantong Changshu

Size: 20 Acres Capacity: 50MW Ranged: Yes

Jiaxing-Pinghu

Shanghai Baoshan & Jiading

Pujiang - Zhoupu South Shanghai

Fanling

Hong Kong Island

Greater China, Hong Kong

Sha Tin

Tseung Kwan O

Tsuen Wan

Banqiao District

Greater China, Taiwan

Neihu District

Sanchong District

Taoyuan

Peripheral South

Ambattur Gurugram

Noida South

India

West Hyderabad

Panvel Powai

Thane Belapur Road

Central Batam

Bekasi

Indonesia

13

Karawang

Central Jakarta