Over four fifths of data centre and construction experts surveyed for research by Turner & Townsend have warned that local supply chains are not well prepared to support the rising push for AI data centres.

The firm’s 2025-26 Data Centre Construction Cost Index reveals that a lack of available power was seen as the single biggest challenge to developing data centres on time, cited by 48% of respondents, rather than cost.

Analysis of the current cost per watt to build data centres across 52 markets reveals 5.5% average cost inflation for traditional data centres worldwide in 2025.

Of the survey respondents, 83% said local supply chains were not well prepared to support increased adoption of advanced cooling techniques needed for high-density centres.

The report calls on developers to review procurement models to strengthen supply chains and states that further innovation is needed to create more energy-efficient designs and mitigate the risks of power connection delays.

Paul Barry, data centres sector lead, North America, at Turner & Townsend, said the report highlighted key challenges that “must be addressed to avoid putting a brake on investment and the benefits of AI transformation”.

He added: “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. AI data centres are more advanced, larger and, by extension, costlier. They come with greater power demands and modern cooling solutions.”

The report’s cost index reveals Tokyo and Singapore are the most expensive locations in which to develop data centres, costing around £11.64 and £11.11 per watt respectively.

Other well-established markets, particularly in the US and Europe, make up most of the top 15. These include Zurich (£10.88), Osaka (£10.80), Silicon Valley (£10.19), London (£9.19) and Frankfurt (£8.89).