Artificial intelligence (AI) workloads are expected to increase power use in Asia-Pacific (APAC) data centers by 165% by 2030, according to the 2025 Data Center Construction Cost Index from global professional services company Turner & Townsend.
The report shows the region is moving toward high-density, liquid-cooled facilities to support AI computing needs. While APAC remains attractive for investment because some markets have relatively low construction costs, experts warn that demand for AI-ready infrastructure is growing faster than local supply chains and power grids can keep up with.
Tokyo is the most expensive city to build data centers in the region, at $15.15 per watt, followed by Singapore at $14.53 per watt. Mumbai, India, offers one of the lowest-cost environments at $6.64 per watt.
“Data centers are increasingly at the forefront of many governments’ long-term policy ambitions and their significance is better understood and recognized, providing greater opportunities for clients in the sector,” said Sumit Mukherjee, managing director for Real Estate in Asia at Turner & Townsend. “Yet our report highlights key challenges that must be addressed to avoid putting a brake on investment and the benefits of AI transformation.”
Other high-cost markets globally include Silicon Valley in the US ($13.3 per watt), London ($12 per watt), and Frankfurt ($11.6 per watt).
The report notes that the main barrier to completing AI data centers on time is not increasing construction costs but the readiness of power supply and local supply chains. A survey of industry experts found 83% believe local supply chains are not fully prepared to provide the advanced cooling technology needed for high-density AI data centers.
While traditional data center construction costs are surging at an average of 5.5% in 2025, AI-supporting facilities carry a higher premium of 7%–10% due to their technical complexity. Almost half of survey respondents said power availability is the main obstacle to completing projects on schedule.
“Power availability remains a critical barrier, with long lead times for grid connection the main constraint,” Mukherjee said. “There is also stronger competition than ever before for power due to both increased business and consumer demand placing added pressure on grids.”
The report recommends that clients review procurement models, strengthen supply chains, and explore energy-efficient designs to reduce the risk of delays and ensure AI data centers can meet growing demand.
“Developers and operators must adapt quickly to the evolving market landscape,” Mukherjee added. “Clients need to navigate the power challenge with more openness to off-grid solutions, while also securing supply chains capable of providing the technology and talent needed for this new wave of data centers.”
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