Data centre developers worldwide are rapidly shifting their focus to the construction of facilities capable of supporting artificial intelligence (AI) workloads – but sector experts are warning that the complex requirements of these new data centres may be outpacing supply chain preparedness.
The 2025-2026 Data Centre Construction Cost Indexfrom global professional services company, Turner & Townsend, points to 2025 as an inflexion point for the sector as it moves from a focus on traditional cloud-based, air-cooled data centres to the growing dominance of high-density, liquid-cooled facilities to support AI workloads.
Analysis of the current cost per watt to build data centres in 52 markets worldwide shows cost inflation for traditional data centres worldwide averaging 5.5 percent in 2025. Turner & Townsend has also for the first time been able to identify a 7-10 percent construction cost premium between traditional and AI data centres in the USA by comparing projects of similar IT capacity. This demonstrates the cost impacts of the more technically complex AI-supporting facilities.
The report’s survey of industry leaders shows that it is power and supply chain capacity to deliver these AI data centres, rather than cost, which is raising concern within the sector.
83 percent of respondents believe local supply chains are not well prepared to support the increased adoption of advanced cooling techniques needed for these high-density centres. Meanwhile, 48 percent said power availability is the most prominent obstacle to delivering projects on schedule – a factor only becoming more significant with the ever-increasing power-density of AI data centres.
The report advises clients to review their procurement models to help strengthen the supply chains and support the delivery of urgently needed AI data centres. Innovation will also be required to develop and deliver more energy efficient designs and mitigate the risks of power connection delays.
Beyond the survey, the report’s cost index also allows comparison of construction costs between the African data centre markets. Lagos and Cape Town are the two most expensive, at US$10.50 and US$10.33 per watt, respectively, with Johannesburg in third at US$10.06 per watt. Nairobi came in as the least expensive city in Africa at US$9.74 per watt.
These figures reflect the evolving dynamics of Africa’s digital infrastructure landscape. Maturing supply chains and growing local expertise are helping to stabilise construction, particularly in newer markets. Lagos, for instance entered our 2024 index at seventh place globally, primarily due to the very high costs of setting up new supply chains and expertise in a market which had not traditionally developed data centres or similar projects. This year, with those skills and supply chains now more embedded, costs have settled significantly, and now sits in 27th place globally.
Wendy Cerutti, Data Centre Cost Index Lead, Africa, at Turner & Townsend, said:
“Africa’s data centre sector reflects a burgeoning digital landscape, fuelled by growing demand for cloud services, data storage and connectivity. Investments have surged, with global players like Microsoft, Amazon Web Services and Google committing substantial resources to establish data centres across the continent. Microsoft’s investment of over US$1 billion in its African cloud regions, particularly South Africa and Nigeria, has catalysed infrastructure growth, enhancing both connectivity and service delivery.
“From South Africa to Nigeria, and now Ivory Coast, the momentum is undeniable. Governments are stepping up with supportive policies, and operators are responding with bold infrastructure developments. But with growth comes complexity; regulatory delays and cybersecurity risks are real challenges, and the rise of AI data centres adds new layers of technical and operational demands.
“Africa may hold just one percent of global digital infrastructure, but it holds 20 percent of the world’s population. The opportunity lies not just in building more data centres, but in shaping a future where digital infrastructure is inclusive, resilient, and future ready.”
To access the full Index, visit: 2025-2026 Data Centre Construction Cost Index
