Data-Center Construction Costs Surge 21% Amid Resource Scarcity

This capital allocation represents a massive shift in infrastructure priorities, with the total pipeline value now exceeding the combined real estate market of New York City by approximately $640 billion. According to Cushman & Wakefield’s latest development guide, $492 billion of this total is currently moving through construction phases, while the remaining $1.8 trillion sits in pre-development or planned status.

John McWilliams, who leads the firm's data-center insights team, noted that the sector has entered a volatile phase where growth potential is dictated by access to power, land, and specialized labor. For the most modern facilities in the U.S. and Canada, all-in greenfield development costs now average $17.6 million per megawatt, a figure that excludes the specialized chips and GPUs required for high-end computing. Power infrastructure remains the primary expense, accounting for roughly 20% of the total development budget.