Singapore Second Globally in Costs for Data Centre Construction
Singapore has become the world’s second most expensive place for building data centres, with average costs for data centre construction now at about $19 per watt (US$14.5). This is a 5% rise from last year and puts Singapore just behind Tokyo, but ahead of major hubs like Silicon Valley.
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The sharp increase is largely due to AI-related demand. Modern facilities now need far higher power density — up to 100–120 kW per rack compared with the old standard of just 3–4 kW. This shift has pushed capital spending up by 20–40%, as companies must upgrade electrical systems and install advanced cooling solutions.
Liquid cooling is becoming far more common, with 26–50% of current builds already using it. Industry experts expect this to climb to as much as 75% within the next two years. However, developers still face supply chain bottlenecks, especially for switchgear and high-end cooling equipment, which can take 9 to 18 months to arrive.
Singapore Data Centres: Rising Costs, Stronger Opportunities
In Singapore, sustainability standards such as SS 715:2025 are also adding pressure, requiring tighter energy-efficiency rules and a PUE of 1.3 or below. Across the Asia-Pacific region, design changes are the biggest risk to project timelines. Globally, delays in getting utility power connections remain the main challenge.
Even with rising costs for data centre construction, Singapore continues to be an attractive and stable investment destination thanks to strong digital policies and a well-regulated environment. Turner & Townsend advises companies to rethink procurement plans, adopt greener design strategies, and explore off-grid power options to avoid long connection delays.
Neighbouring markets Malaysia, Jakarta and Mumbai offer lower construction costs, but Singapore’s reliability and digital readiness still keep it competitive.
Contact the Experts in Asia
If you’re exploring data centre investment opportunities or need support navigating rising costs, 3E Accounting can guide you through planning, compliance and market entry. Contact us today for expert assistance.
