Kuala Lumpur and Johor Bahru among lower-cost data centre construction markets, Turner & Townsend index shows
Kuala Lumpur and Johor Bahru are ranked among the lower-cost markets globally for data centre construction, with indicative costs of US$10.06 per watt each. Singapore remains Southeast Asia's most expensive market at US$15.39 per watt, while Ho Chi Minh City is the cheapest in the region at US$8.32
KUALA LUMPUR and Johor Bahru are among the lower-cost markets for data centre construction in Turner & Townsend's latest global index, with indicative construction costs of US$10.06 (RM43.17) per watt each, the global programme management company said on Monday (Nov 2).
Indicative construction costs in both Malaysian cities were lower than in Singapore and Jakarta, but higher than in Bangkok, Manila and Ho Chi Minh City. Singapore was Southeast Asia's most expensive market and fourth globally at US$15.39 per watt.
The Data Centre Construction Cost Index covers 62 markets, drawing on more than 500 live or recently completed projects and a survey of more than 400 industry experts. The index benchmarks a typical air-cooled, build-to-suit hyperscale data centre with about 60MW of information technology load. The figures exclude land purchases, utility works, abnormal groundworks, site works, active IT equipment and professional services fees.
Across Southeast Asia, Jakarta's indicative construction cost was US$11.96 per watt, compared with Bangkok's US$9.67 and Manila's US$9.55. Ho Chi Minh City was the region's lowest-cost market and third-lowest among the 62 markets covered, at US$8.32 per watt.
Turner & Townsend Malaysia project director for data centres Patrick Thilagaraj said regional cost differences reflected varying stages of market maturity as demand for artificial intelligence (AI) infrastructure drives larger projects. "The common theme is that wherever the project sits, power, land and skilled people are in high demand," he said. "As Southeast Asia's data centre market continues to scale, understanding these cost dynamics will be critical for developers and investors planning their next move in the region."
Globally, Tokyo topped the construction cost rankings for the fourth consecutive year at US$18.28 per watt, followed by Osaka at US$17.15 and Zurich at US$15.93. Shanghai and Mumbai were the lowest-cost markets at US$5.79 and US$6.83 per watt respectively. Lower-cost locations also included Bogota at US$9.13 per watt and the UAE at US$9.20.
Turner & Townsend said construction cost pressures showed some signs of stabilising in 2026, although structurally higher costs and risks were increasingly being priced into contracts. Some 52% of survey respondents expected more than half of their projects in 2027 to be data centres supporting AI workloads. Labour and power availability remained significant constraints, with 81% of respondents saying skilled labour in their regions was moderately or highly constrained, and 56% identifying power as a major obstacle to successful project delivery.
