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Asia Pacific Data Centre Construction Cost Guide 2025

James Normandale • 1/16/2025

Our 2025 report provides a comprehensive analysis of both land purchase and data centre construction costs to assist data centre operators, developers, investors and lenders looking to better understand the sector’s capital requirements.

Drawing on Cushman & Wakefield data from 90 clusters across 26 data centre locations, the report provides detailed modelling and cost scenarios along with insights into key themes influencing the sector’s development: power availability and cost, AI, and investment trends.

Data Centre Construction Costs

Data centre construction costs continued to rise in 2024, albeit more slowly than in prior years as supply chain stress continued to ease. Regionally, construction cost inflation of 3.8% off last year’s record high base reflected ongoing demand within the sector.

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 has slowed or plateaued as demand/supply for materials reconciles into post-pandemic norms.

India, Australia and Indonesia saw the greatest increase in construction costs (5%) while Hong Kong, China saw the slowest rate of inflation (2.1%).

The top five most expensive construction markets have remained unchanged from last year, albeit ranked differently.

 

Most Expensive Markets

(ranked by mid-range cost and based on a mid-specification build)

  1. Japan
  2. Singapore
  3. Australia
  4. South Korea
  5. Greater China, Hong Kong

Land Purchase Costs*

Land costs continued to rise in 2024 as an increasing scarcity of powered sites suitable for data centre construction in established markets drove interest in emerging markets. This scarcity of land has encouraged a move towards innovative redevelopment of brownfield sites.

*Note that our methodology for calculating land costs has changed to reflect cluster pricing rather than market pricing; year-on-year comparisons are not available.

Most Expensive Clusters

(ranked by mid-range land)

Inner City Clusters

  1. Gangnam, Seoul, South Korea
  2. Neihu District, Taipei, Taiwan China
  3. Central Tokyo, Greater Tokyo, Japan
  4. Central Jakarta, Greater Jakarta, Indonesia
  5. South West Seoul, Seoul, South Korea
 
 
Outer CBD Fringe Clusters
  1. Kawasaki, Greater Tokyo, Japan
  2. Sha Tin, Hong Kong, Greater China
  3. Seongnam, Seoul, South Korea
  4. Fanling, Hong Kong, Greater China
  5. Sagamihara, Greater Tokyo, Japan
OUR CAPABILITIES​
Learn more about Cushman & Wakefield's data centres capabilities across Asia Pacific, including regional and local market insights, our services, key client case studies and contacts.
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