The race to build next-generation AI-capable data centres is straining global and African supply chains, with power availability emerging as the single greatest obstacle to timely delivery, according to Turner & Townsend’s 2025–2026 Data Centre Construction Cost Index.
The professional services firm says 2025 marks an inflection point for the global data centre industry, as it transitions from air-cooled, cloud-based facilities to high-density, liquid-cooled architectures designed to handle AI workloads.
Power and supply chain under pressure
While demand for AI-ready infrastructure is surging, 83% of industry leaders surveyed said local supply chains are unprepared for the specialised materials, equipment, and expertise required to deploy advanced cooling technologies.
Additionally, 48% of respondents cited power availability as the leading challenge delaying projects — a problem magnified by the extraordinary power density of AI-driven data centres.
Turner & Townsend recommends revisiting procurement models to bolster supply chain resilience and calls for innovation in energy-efficient design to mitigate risks tied to delayed power connections.
The report also found that construction costs for traditional data centres rose 5.5% this year globally, while AI-specific data centres cost 7% to 10% more due to their technical complexity and higher energy demands.
Africa’s rising data centre frontier
Across Africa, Lagos ($10.50/W), Cape Town ($10.33/W), and Johannesburg ($10.06/W) are now the continent’s most expensive markets for data centre construction, followed by Nairobi ($9.74/W) — the least costly among major hubs.
These numbers reflect Africa’s maturing digital infrastructure ecosystem, where local expertise and supply chains are gradually stabilising costs despite growing technical sophistication.
Last year, Lagos ranked seventh globally for construction risk, driven by the high costs of establishing supply chains in a new market. In 2025, it dropped to twenty-seventh, signalling improved market maturity.
“Africa’s data centre sector reflects a burgeoning digital landscape, fuelled by demand for cloud services, data storage, and connectivity,” said Wendy Cerutti, Turner & Townsend’s data centre cost index lead.
Investment momentum across the continent
The report highlights major investments by global tech giants as catalysts for infrastructure growth.
- Microsoft’s $1 billion investment in its African cloud regions — particularly South Africa and Nigeria — has accelerated data centre development and improved service reliability.
- Amazon Web Services and Google have also expanded their African footprints, contributing to a continent-wide surge in construction.
Cerutti notes that this expansion is accompanied by new complexities, including regulatory delays, cybersecurity risks, and the technical challenges of AI-oriented data centres.
Building for inclusion and resilience
Despite representing only 1% of global digital infrastructure, Africa accounts for 20% of the world’s population, underscoring both the scale of opportunity and the urgency of investment.
“The opportunity lies not just in building more data centres, but in shaping a future where digital infrastructure is inclusive, resilient, and future ready,” Cerutti said.
As AI reshapes infrastructure design and demand, Africa’s data centre market is entering a critical phase — one where technical innovation, supply chain agility, and sustainable power access will determine whether the continent can meet its rapidly growing digital ambitions.
