Jy ChuahMalaysia’s data centre construction costs have climbed sharply, reaching as high as US$12 million per megawatt (MW), driven by rapid expansion in artificial intelligence (AI) infrastructure. According to real estate consultancy Cushman & Wakefield, mid-range costs are now around US$9.6 million per MW, reflecting a 9.3% year-on-year increase.
The surge is largely attributed to evolving technical requirements for AI-ready facilities. New-generation hardware demands significantly higher power capacity, advanced cooling systems, and more robust structural design, all of which add to development costs.
Across the Asia-Pacific region, construction costs vary widely, ranging from US$7.9 million to US$19.2 million per MW. Markets such as Japan and Singapore remain the most expensive, while others are comparatively lower-cost.
Industry experts note that increasing competition for sites with adequate power supply, grid limitations, and longer connection timelines are further complicating project delivery. As AI adoption accelerates, markets capable of meeting these infrastructure demands are expected to gain a competitive edge, while others may face rising cost pressures and delays.
