According to TechRepublic, Turner & Townsend’s 2025-2026 Data Center Construction Cost Index reveals some alarming numbers about the AI construction boom. The report surveyed 280 industry experts across 52 global markets and found that 48% cite power availability as the main obstacle to meeting delivery schedules. Even more striking, 83% believe supply chains aren’t equipped to deliver advanced cooling technologies for AI data centers. Global construction cost inflation for traditional data centers is projected at 5.5% in 2025, while AI-ready facilities carry a 7-10% cost premium in the U.S. Tokyo leads as the world’s most expensive market at $15.2 per watt, followed by Singapore at $14.5 per watt and Zurich at $14.2 per watt.
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The Power Problem Nobody Saw Coming
Here’s the thing about AI data centers that’s catching everyone off guard: they’re absolute energy hogs. We’re talking about facilities that consume power like small cities. And the grid? It wasn’t built for this. When nearly half of industry experts say power availability is their biggest challenge, you know we’ve got a fundamental infrastructure problem.
Think about it – these AI workloads are incredibly dense and run 24/7. They’re not like traditional data centers where you can shift loads around. AI training runs for weeks or months nonstop. So when developers can’t get guaranteed power access, entire projects get delayed. Basically, we’re trying to pour Olympic swimming pool amounts of electricity through garden hose infrastructure.
Supply Chains Are Failing The Cooling Test
That 83% number about cooling technology should scare the hell out of anyone building AI infrastructure. Liquid cooling isn’t some optional upgrade anymore – it’s essential for keeping these power-hungry AI chips from melting. But the supply chain for advanced cooling systems? It’s completely unprepared.
We’re talking about specialized equipment that requires manufacturing capacity that simply doesn’t exist at scale yet. And everyone needs it at the same time. So what happens? Projects get delayed, costs skyrocket, and the whole AI revolution slows down. It’s like everyone decided to build skyscrapers at once, but forgot we only have enough steel for a few houses.
The Cost Explosion Is Real
That 7-10% premium for AI-ready facilities tells only part of the story. When you look at markets like Tokyo hitting $15.2 per watt, you start to understand why this AI infrastructure build-out is becoming prohibitively expensive. These aren’t minor cost increases – we’re talking about billions in additional spending across the industry.
And the inflation isn’t slowing down. With traditional data centers still seeing 5.5% cost growth, plus the AI premium on top, the financial model for many projects is getting shaky. The full report makes it clear that developers need to completely rethink their approach to procurement and design.
Adapt Or Get Left Behind
Paul Barry from Turner & Townsend nailed it when he said developers need to embrace off-grid solutions and strengthen supply chains. But here’s my question: how quickly can an entire industry pivot? We’re talking about fundamental changes to how data centers are designed, powered, and cooled.
The alternative energy solutions he mentions aren’t just nice-to-haves anymore – they’re becoming necessities. Solar, wind, maybe even small modular reactors? Everything’s on the table now. And procurement strategies need to become way more resilient. Single-source suppliers? That’s a recipe for disaster when the entire industry is scrambling for the same components.
Look, the AI train has left the station. But we’re realizing the tracks might not be able to handle the weight. The next couple years will determine whether we can actually build the infrastructure to support this revolution, or if we hit a wall that even the smartest AI can’t solve.
