Asia Pacific Data Construction Cost Guide 2025

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: •

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

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