A new report from Turner & Townsend has revealed power access and supply chains are the biggest obstacles to driving development of AI data centres.

The firm’s 2025-2026 Data Centre Construction Cost Index warns the complex requirements of these new data centres may be outpacing supply chain preparedness.

Plus, power availability is seen as the biggest single challenge to delivering data centres on schedule, as the industry continues to grapple with securing timely access to energy grids.

The report 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% in 2025. 

Turner & Townsend has also for the first time been able to identify a 7-10% 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.

It found 83% 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% 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 global data centre markets. Tokyo and Singapore are the two most expensive, at US$15.2 and US$14.5 per watt, respectively, with Zurich in third at US$14.2 per watt.  These costs are driven by buoyant demand as they remain dominant hubs for data centres in their respective regions, as well as having generally high construction costs.

Other well-established markets across the globe, particularly in the United States and Europe, make up most of the top 15. This includes Silicon Valley (US$13.3 per watt), London (US$12.0 per watt) and Frankfurt (US$11.6 per watt) – each among the largest markets in their respective regions.

Paul Barry, data centres sector lead, North America at Turner & Townsend, said: “Data centres are increasingly at the forefront of many governments’ long-term policy ambitions and their significance is better understood and recognised – providing greater opportunities for clients in the sector. Yet our report highlights key challenges that must be addressed to avoid putting a brake on investment and the benefits of AI transformation.

“Power availability remains a critical barrier, with long-lead times for grid connection the main constraint. There is also stronger competition than ever before for power due to both increased business and consumer demand placing added pressure on grids.

“Developers and operators must adapt quickly to the evolving market landscape. AI data centres are more advanced, larger, and by extension, costlier. They come with greater power demands and modern cooling solutions. Clients need to navigate the power conundrum with greater openness to off-grid design solutions, while also securing reliable supply chains capable of providing the technology and talent needed for this new wave of data centres.”

Click here to read the full index.