{"id":9323,"date":"2025-11-06T11:48:34","date_gmt":"2025-11-06T03:48:34","guid":{"rendered":"https:\/\/sgbuzz.com\/?p=9323"},"modified":"2025-11-06T11:48:34","modified_gmt":"2025-11-06T03:48:34","slug":"singapore-second-most-expensive-data-centre-construction-market-report","status":"publish","type":"post","link":"https:\/\/sgbuzz.com\/?p=9323","title":{"rendered":"Singapore second-most expensive data centre construction market: report"},"content":{"rendered":"


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A Turner & Townsend report shows that Singapore is once again the second-most expensive market in which to build data centres<\/p>\n

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[SINGAPORE] The Republic held on to its place as the second-most expensive market for data centres in 2025, said a Turner & Townsend report.<\/p>\n

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.<\/p>\n

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.<\/p>\n

The report comes as suitable land for data centres becomes harder to find, with Keppel already coming up against such barriers<\/a>. A Knight Frank report in September<\/a> said Singapore\u2019s \u201cstrict planning controls\u201d have resulted in global tech firms looking north instead and Johor has emerged as the \u201ctop alternative\u201d<\/a><\/u>.<\/p>\n

Singapore last month also announced plans to build a low-carbon data centre park on Jurong Island<\/a> with up to 700 megawatts of capacity in what will be the country\u2019s largest such facility.<\/p>\n

Turner & Townsend said that power requirements are \u201cincreasing significantly\u201d, with power needs rising from around 3 kilowatts per rack to over 100 kilowatts per rack in advanced facilities. <\/p>\n

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\u201cThis shift is pushing capital expenditures up by 20 to 40 per cent, largely due to the integration of advanced cooling systems and upgraded electrical infrastructure,\u201d said the company.<\/p>\n

Project schedules in the Asia-Pacific region also face significant delays, with design changes cited as the top challenge by a third of respondents, found the report.<\/p>\n

In Singapore, while the supply chain is \u201cimproving\u201d, specialised equipment and skilled labour for advanced cooling remain in short supply, extending lead times. <\/p>\n

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SEE ALSO<\/p>\n

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Additionally, the report found that delays in sourcing critical equipment, particularly for high-density and liquid cooling systems, add complexity to modular campus developments.<\/p>\n

Turner & Townsend described Singapore\u2019s cost dynamics as \u201cuniquely intense\u201d due to its market maturity and regulatory landscape. <\/p>\n

Stricter environmental regulations, including a new mandate for up to a 30 per cent reduction in energy consumption and a focus on achieving a reduced Power Usage Effectiveness of 1.3 or lower, are contributing to higher costs, the report found.<\/p>\n

Turner & Townsend added that complex design requirements further drive engineering and construction expenses higher, making development in Singapore more costly compared to other markets in the region.\u00a0 <\/p>\n

While nearly half of respondents across the 52 markets polled said that power availability is the \u201cmost prominent obstacle\u201d to on-schedule projects, power availability in Singapore is \u201cdetermined by clear environment, social and governance (ESG) alignment\u201d.<\/p>\n

\u201cOnly projects with strong ESG alignment and low-carbon outcomes are considered for power allocation, and developers must present robust sustainability plans to qualify,\u201d said Turner & Townsend.<\/p>\n

Still, the report found that Singapore\u2019s long-term policy stability and \u201cclear ESG mandates\u201d provide investors with \u201cstrong\u201d assurances, helping them mitigate the regulatory uncertainty in other markets.<\/p>\n<\/div>\n


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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…<\/p>\n","protected":false},"author":1,"featured_media":1864,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[2611],"tags":[],"class_list":["post-9323","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buzz-headlines","wpcat-2611-id"],"_links":{"self":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/posts\/9323","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9323"}],"version-history":[{"count":0,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/posts\/9323\/revisions"}],"wp:attachment":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9323"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9323"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9323"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}