The Tool Desk
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Data center construction cost depends on the location, capacity, design, and—most importantly—what the estimate includes. For a useful starting point, JLL puts average global shell-and-core construction at $10.7 million per MW in 2025 and forecasts $11.3 million per MW for 2026. Those figures describe a defined building benchmark, not a complete, equipped data center: they exclude land and active IT equipment, while tenant technology fit-out can add substantially more.
The practical answer is to compare like with like. Separate the building from power and cooling systems, tenant fit-out, IT equipment, land, and other project costs; then adjust for market, capacity, cooling assumptions, and procurement risks. The benchmarks below are useful for orientation, not a substitute for a project-specific estimate.
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What does a data center construction cost estimate include?
First establish the estimate’s cost boundary. “Construction cost” can refer to the building and its core infrastructure, a powered shell, a tenant fit-out, or a broader capital budget that includes servers and networking. A cost per megawatt is meaningful only when those scopes—and the definition of the megawatt—are clear.
JLL’s headline benchmark is for shell and core at a single-tenant, 50 MW, air-cooled facility. It excludes land and active IT equipment. JLL separately notes that AI tenant technology fit-out can cost as much as $25 million per MW. That is a possible fit-out cost, not a standard add-on for every project, and it should not be confused with the shell-and-core rate.
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A separate 2026 report hosted by NYSERDA reproduces a BofA Global Research estimate of $37.6 million per MW in 2025 total capex. Its broader scope includes servers, networking, storage, electrical and thermal equipment, and engineering and construction. It is therefore not a directly comparable alternative price for the same building work.
When reading a proposal or benchmark, ask whether it includes:
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- Land acquisition and site preparation.
- Grid connection, utility work, and other power-related scope.
- The building shell and core systems, or a more complete powered shell.
- Cooling and electrical equipment, and whether it is owner- or contractor-supplied.
- Tenant fit-out and active IT equipment such as servers, networking, and storage.
The cited benchmarks do not use one universal cost boundary for all these items. If a scope item is not explicitly listed as included, treat it as unconfirmed rather than assuming it is covered.
How much does it cost to build a data center per megawatt?
JLL’s global shell-and-core average rose from $7.7 million per MW in 2020 to $10.7 million per MW in 2025; JLL reports a 7% compound annual growth rate and forecasts $11.3 million per MW for 2026. These figures are for the source-defined, air-cooled, single-tenant 50 MW facility and exclude land and active IT equipment. JLL’s 2026 Global Data Center Outlook provides the benchmark and its assumptions.
The table shows how much geography can change the comparison. Every figure is a JLL 2026 estimate in U.S. dollars per MW for that same shell-and-core benchmark; it is not a turnkey price. Rates are checked November 2026.
| Market | 2026 shell-and-core estimate (US$ millions per MW) |
|---|---|
| Chicago | $14 |
| Northern Virginia | $12 |
| Phoenix | $11 |
| Dallas | $11 |
| Atlanta | $11 |
| London | $14 |
| Frankfurt | $13 |
| Paris | $12 |
| Amsterdam | $12 |
| Dublin | $11 |
| Tokyo | $18 |
| Singapore | $15 |
| Seoul | $12 |
| Sydney | $12 |
| Mumbai | $7 |
The table spans $7 million per MW in Mumbai to $18 million per MW in Tokyo. It illustrates why a global average cannot stand in for a location-specific estimate. Even within the Americas examples, Chicago is $14 million per MW while Phoenix, Dallas, and Atlanta are each $11 million per MW. These are market benchmarks under specified assumptions, not guaranteed bids for a particular site.
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Capacity arithmetic can help translate a benchmark into a rough scale: multiplying JLL’s 2025 global average of $10.7 million per MW by the benchmark facility’s 50 MW yields $535 million. That is only the arithmetic for the benchmark’s shell-and-core scope, not an all-in 50 MW project budget. It does not add excluded land, active IT equipment, or any other scope not covered by the figure.
Also confirm what “MW” measures in the estimate. A project may describe IT capacity or another capacity basis, and the denominator affects the apparent cost per MW. The available JLL benchmark specifies the facility assumptions, but a reader comparing a separate estimate should ask for its capacity definition instead of presuming the denominators match.
Why does power availability affect the budget?
Power availability matters at the site-selection stage because a data center needs a viable path to the power capacity its design requires. JLL identifies “Speed to power” as the primary site-selection criterion, followed by community support, latency, and proximity to customers. That is a ranking of siting priorities—not a claim that power represents a particular percentage of construction cost.
A site that appears attractive on land or location may not be suitable on the required schedule if power access is uncertain. For budgeting, distinguish the building’s electrical infrastructure from utility availability, interconnection, and other grid-related work. The cited shell-and-core benchmark excludes land and active IT equipment, but it does not provide a universal separate allowance for grid connection. Do not infer that a quoted building rate includes the cost or timing of bringing sufficient power to the site.
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Repair common Windows errors and clear accumulated junk for a smoother, more stable PC - no reinstall needed.Free scan · no reinstallBefore relying on a per-MW benchmark, clarify the project’s required capacity, the status and timing of power access, and which party is responsible for utility-related work. A construction estimate can only be evaluated properly when these assumptions are visible alongside the building scope.
How much more does liquid cooling cost?
JLL reports a 10% cost premium for liquid-cooled facilities in its stated comparison context. That is a benchmark adjustment, not a universal rule for every project: the premium is meaningful only when the baseline and project assumptions match. JLL also reports a 20% addition for multistory facilities in the Americas within its cost comparison. Do not stack either adjustment onto an unrelated rate without confirming that the source assumptions apply.
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Cooling choices are becoming more significant as AI workloads increase facility density. Turner & Townsend describes a shift toward liquid cooling in that context, but the cited material does not establish one cost premium that applies to all liquid systems, capacities, or designs. Cooling design also has to be considered with the electrical and thermal equipment included in the scope; comparing a liquid-cooled fit-out with an air-cooled shell-and-core figure would mix different categories.
For a useful comparison, ask both estimators to identify the cooling approach, the density assumptions, and which equipment and installation work are included. Apply a published premium only after confirming that its baseline resembles the project being budgeted.
How do labor availability and equipment lead times change cost?
Labor availability and equipment procurement can put pressure on both cost and schedule. Currie & Brown identifies shortages of skilled labor, particularly electricians, and long equipment lead times as risks that can push costs higher. It also says location, design efficiency, and whether equipment is owner-supplied or contractor-supplied affect construction costs.
The cited sources do not give a named labor-cost share for data center construction. A budget should therefore not assign a made-up percentage of total cost to labor based on these sources. Instead, make the labor and procurement assumptions explicit: which skilled trades are needed, whether they are available in the project market and period, which equipment is being procured, and who buys and coordinates it.
Owner-furnished equipment does not disappear from the project budget just because it is outside a contractor’s price. It may sit in a different budget line and still affect sequencing, coordination, and the overall schedule. Request a clear list of owner-supplied items and responsibilities, along with the assumptions behind contractor-supplied equipment, so that excluded scope is not mistaken for a saving.
Currie & Brown’s U.S. mission-critical construction series rose from $5.6 million per MW in 2019 to $8.8 million per MW in 2023, with $9.2 million per MW predicted for 2024 in its Q2 2024 overview. That last number was a forecast made in 2024, not a current price. The series is useful as historical context, but should not replace current, location- and scope-matched estimates. Currie & Brown’s U.S. construction market overview also describes the relevant cost drivers and risks.
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How have construction costs changed?
For traditional data centers, Turner & Townsend reported average cost inflation of 5.5% across 52 markets in 2025. This is a market-level inflation measure, not a guaranteed escalation rate for an individual project or an adjustment that should automatically be added to every benchmark. Project timing, place, design, and scope still matter.
The historical figures from JLL and Currie & Brown also use different source contexts and benchmarks. A reader should not splice them into a single continuous series unless the scope, geography, capacity basis, and methodology are known to align. The safest use of historical data is to show that costs have moved over time, while obtaining a current estimate for the actual market and scope.
Turner & Townsend’s 2025 report discusses both traditional data-center cost inflation and supply-chain pressure associated with the AI build-out. Its 5.5% figure is an average across its 52-market analysis, not a project quote.
How should you build a realistic project budget?
Use a benchmark to check scale, then build the budget from a scope that matches the project. The following sequence helps prevent the most common comparison errors.
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- Define capacity and denominator. State the planned MW basis—such as the IT-load basis if that is what the estimate uses—and the facility capacity. Confirm that every comparison uses the same definition.
- Choose the location and date. Use a market-specific estimate with its year attached. Do not apply a global average as though it were a local bid.
- Write down the cooling and design assumptions. Identify air or liquid cooling, density assumptions, and whether the project is multistory. Treat JLL’s 10% cooling premium and 20% multistory addition as context-specific comparisons, not default allowances.
- Mark the scope boundary. Separate shell and core, powered shell, fit-out, IT equipment, land, and utility or grid work. For every category, note whether it is included, excluded, or still unconfirmed.
- Assign equipment procurement responsibility. Identify which items are owner-supplied and which are contractor-supplied. Check that every item appears somewhere in the overall budget, even if absent from a construction contract.
- Check schedule risks. Discuss skilled-trade availability and equipment lead times in the project market. Those risks may affect cost and delivery; the sources do not supply a single percentage to use as a contingency.
- Compare estimates line by line. Reconcile differences in date, geography, capacity, cooling, scope, and procurement assumptions before deciding which estimate is lower or more complete.
This process does not produce a universal “all-in cost per MW.” It produces a more useful answer: a budget whose scope and assumptions can be checked, changed, and discussed with project participants.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What does an equipment-inclusive estimate look like?
The NYSERDA-hosted report reproduces BofA Global Research’s estimate of $37.6 million per MW in 2025 total capex. Its category figures show why an equipment-inclusive estimate should not be mistaken for a construction-only rate. Values are in U.S. dollars per MW and percentages are rounded; the estimate is checked November 2026.
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| Category | Estimated cost (US$ millions per MW) | Share (rounded) |
|---|---|---|
| Servers | $25.0 | — |
| Networking | $3.6 | — |
| Storage | $1.2 | — |
| IT equipment subtotal | $29.8 | 79% |
| Electrical equipment | $1.7 | 5% |
| Thermal equipment | $1.4 | 4% |
| Engineering and construction | $4.1 | 11% |
| Total capex | $37.6 | 100%* |
*Category percentages are rounded. The supplied report gives the IT equipment subtotal and its components, while the 79% share applies to that subtotal. The estimate’s engineering and construction line is not the same scope as JLL’s standalone shell-and-core benchmark. Likewise, electrical and thermal equipment appear as separate lines here; their presence does not make the two source totals directly comparable.
This broader estimate is useful when a reader wants to see the relative scale of IT equipment in one published total-capex scenario. It is not an instruction to add $37.6 million per MW to JLL’s $10.7 million per MW: that would double-count or combine scopes without a demonstrated reconciliation.
How can you tell whether two estimates are comparable?
Before comparing totals, align the assumptions that most change the result. A lower figure may simply exclude more scope or refer to a different market, date, or capacity basis.
- Geography and date: Is each number local to the project market, and when was it estimated?
- Capacity basis: Does the denominator mean IT capacity or another MW measure?
- Cooling and density: Are both estimates air-cooled or liquid-cooled, and do they assume similar density?
- Delivery scope: Is each number shell-and-core, powered shell, tenant fit-out, turnkey, or total capex?
- Included items: Are land, grid interconnection, active IT equipment, and owner-furnished equipment included?
- Execution assumptions: Do the estimates account for local skilled labor availability and equipment procurement responsibilities?
These checks follow directly from the differences between JLL’s defined shell-and-core benchmark, Currie & Brown’s discussion of procurement and labor risks, and the broader BofA Global Research capex estimate reproduced in the NYSERDA-hosted report. If an estimate does not answer these questions, its headline cost per MW is not enough to support a reliable comparison.
Frequently Asked Questions
Is data center construction cost the same as the cost to operate a data center?
No. The figures discussed here are construction or capital-cost estimates, not ongoing electricity, maintenance, staffing, or operating expenses. The cited benchmarks do not provide an operating-cost estimate.
Can I use a U.S. construction benchmark for a project in another country?
Only as broad context, not as a local budget. The market examples in JLL’s 2026 table vary substantially, so a project estimate should use the relevant location and the same scope assumptions.
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1Repair Windows errors before they cause bigger problems2Fix the driver behind crashes, sound loss and screen glitches3Clear out junk files and repair common Windows errorsDoes a cost-per-megawatt figure tell me the total cost of a project?
Not by itself. It can be multiplied by a stated capacity for a rough scale check, but the result remains limited to the estimate’s scope and denominator; excluded items still need separate treatment.
Why can two data center estimates for the same capacity differ so much?
They may use different locations, dates, cooling designs, capacity definitions, or inclusion rules for fit-out and equipment. Labor availability and the division between owner- and contractor-supplied equipment can also change the estimate.
