Singapore has emerged as the most expensive location for data centre construction in Southeast Asia, according to Turner & Townsend’s latest Data Centre Construction Cost Index (DCCI). The report highlights that Singapore ranks fourth globally, with costs at US$15.39 per watt, driven by high land, labour, and compliance expenses. In contrast, Ho Chi Minh City is the region’s most cost-efficient market, ranking 60th at US$8.32 per watt.
The DCCI, now in its 10th edition, draws on data from over 500 projects across 62 markets. It reveals that Tokyo and Osaka are the most expensive globally, with costs of US$18.28 and US$17.15 per watt, respectively. The report attributes rising costs to the increasing scale of projects, particularly those supporting AI workloads, which require specialised skills and materials.
Patrick Thilagaraj, Project Director at Turner & Townsend, noted, “Singapore’s position as an established hub brings higher costs, whilst emerging markets like Ho Chi Minh City offer lower build costs as infrastructure and supply chains develop.”
Globally, the report indicates that 52% of respondents experienced cost increases above 6% in 2026, with skilled labour shortages affecting 81% of the surveyed experts. Sumit Mukherjee, Managing Director at Turner & Townsend, commented, “Asia is setting the pace in the global data centre story, with significant investment flowing into the region.”
As the demand for AI and data storage grows, understanding these cost dynamics is crucial for developers and investors planning future projects in Southeast Asia.
