A Turner & Townsend report shows that Singapore is once again the second-most expensive market in which to build data centres
[SINGAPORE] The Republic held on to its place as the second-most expensive market for data centres in 2025, said a Turner & Townsend report.
The professional services company found that construction costs grew 5 per cent year on year, from US$13.8 to US$14.53 per watt, in its 2025 Data Centre Construction Cost Report.
This was only behind Tokyo, Japan and ahead of the Silicon Valley region in the US. Regionally, Kuala Lumpur and Jakarta clocked in at US$11.37 and US$11.21 per watt, respectively, while Shanghai was even lower at US$6.12.
The report comes as suitable land for data centres becomes harder to find, with Keppel already coming up against such barriers. A Knight Frank report in September said Singapore’s “strict planning controls” have resulted in global tech firms looking north instead and Johor has emerged as the “top alternative”.
Singapore last month also announced plans to build a low-carbon data centre park on Jurong Island with up to 700 megawatts of capacity in what will be the country’s largest such facility.
Turner & Townsend said that power requirements are “increasing significantly”, with power needs rising from around 3 kilowatts per rack to over 100 kilowatts per rack in advanced facilities.
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