Europe Now Has Costliest Data Centre Builds
The 10th Turner & Townsend index shows contractor shortages and slow grid connections pushing build costs up across the continent.
Updated on Nov. 3, 2026 in Data Centers
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A Turner & Townsend benchmark, the 10th edition of its Global Data Centre Construction Cost Index covering more than 20 markets, ranks Europe as the world's most expensive region for new data centre construction. The index is an established annual benchmark; its findings describe current construction costs rather than a new technology.
Why it matters
Construction costs are rising fastest where contractor capacity is tightest and grid connections are slowest, which shapes where AI and cloud compute capacity can be built next. Half of the 20 most expensive cities for data centre construction are in Europe, while the Middle East ranks as the most cost-competitive region.
The benchmark is a survey-based cost index expressed in dollars per watt of capacity, not a measured engineering result. Zurich's $15.93 per watt compares with $9.20 in the UAE and $5.79 in Shanghai, the lowest in the set, and the survey finds 52% of respondents report utility connections taking one to two years while 32% report more than two.
The players
Turner & Townsend
A global construction and project consultancy whose Global Data Centre Construction Cost Index benchmarks build costs across more than 20 markets.
The details
Construction cost is expressed in dollars per watt, meaning the total build cost divided by the power capacity the facility can deliver to its computing equipment. The index measures the average of this figure across markets, so a higher number means a more expensive build for each unit of power delivered. Grid congestion, the strain on local electricity networks when demand outpaces supply, has already delayed projects in the Netherlands, Belgium, the UK and Sweden.
Timeline
Over the past decade, the data centre industry transformed and the construction cost index was first published.
The 10th edition of the index was published in November 2026, most recently on 2026-11-03.
Data centre capital expenditure is projected to reach $1.8 trillion by 2050.
The Tech Race
The Turner & Townsend index tracks the cost race between regions competing to host AI and cloud compute capacity. Its finding that Europe is now the most expensive region, while the Middle East is the most cost-competitive, positions the two as rival destinations for the next wave of data centre investment.
Higher construction costs in Europe can raise the price of cloud and AI services that depend on new capacity built there, though the source does not quantify any pass-through to customers. Availability timelines for new European facilities depend on utility connections, which 32% of respondents say take more than two years.
The takeaway
Watch the next edition of the Turner & Townsend index to see whether Europe's cost premium and contractor shortage narrow or widen. Track whether grid connection times, which 52% of respondents say take one to two years, lengthen further in the Netherlands, Belgium, the UK and Sweden.
Further reading
For background on how these build costs fit into the wider industry, see the Data Centers section.
Source note: This article includes information reported by Consultancy.
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