Singapore is 5th most expensive market for data centre construction

This is partly due to changes in planning conditions.

Singapore is the 5th most expensive market for data centre construction, the first time it became part of the top 10, according to global professional services company Turner & Townsend.

In the Data Centre Cost Index 2022, Turner & Townsend said the indicative cost in Singapore is US$11.30 per watt, with a Data Centre Cost Index of 1.15.

“This has been partly driven by changes to planning conditions placing an emphasis on energy consumption and sustainability requirements, which has added to costs locally,” the report said.

The Lion City is behind Zurich, Silicon Valley, New Jersey, and Tokyo.

Globally, Turner & Townsend found that the average cost to build data centres rose by 15% as the industry faces inflation amidst delays in deliveries of materials and competition for skilled labour from large-scale advanced manufacturing projects.

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Around 95% of experts surveyed agreed that the global materials shortages have an impact on construction timescales, with most noting delays of over 12 weeks. Around 92% of respondents are also struggling to meet construction demand because of a shortfall of experienced site teams.

“Developers are facing a perfect storm of currency fluctuations, a race for talent from other advanced technology sectors and materials delays and shortages. The sector has been adapting to this challenging environment over the past 12 months,” said Lisa Duignan, head of European Centres at Turner & Townsend. “It’s becoming increasingly vital for clients to prioritise a programmatic, collaborative approach to procurement, project delivery and project controls.

“For end users, forging and building on partnerships with recognised developers with a robust supply chain is likely to be the focus during this time of economic headwinds. Contractors are competing on lower margins and so will be looking to create a shared understanding with their clients,” she added.

The study analysed construction input costs including labour and material across 45 key markets and surveyed 250 data professionals.