Data Center Development Cost Guide – US Guide Highlights
Data center demand is heightened as AI, cloud storage, and an increasingly digitalized world outpace the available market capacity—and undersupply conditions are a norm in the industry. Users and developers are pushed to explore new markets for available land and power while costs continue to fluctuate and rise.
Our Data Center Development Cost Guide provides insights across U.S. markets, including building, material, land and labor costs, material and equipment lead times, labor availability, and more.
KEY TAKEAWAYS
- Power Challenges in Established Markets: Limited power availability is pushing data center developments to emerging and tertiary markets where power is more accessible.
- Land Cost Trends: While the weighted average cost of data center land has decreased to $5.59 per square foot ($244,000 per acre) in 2024, prices for parcels 50 acres or larger have surged by 23% from 2023.
- Increasing Parcel Sizes: Average data center land transactions have grown to 224 acres, driven by the need for multi-building campuses and future expansion capabilities.
- Building & Construction Costs: Costs continue to rise, but at a slower pace compared to previous years, indicating a deceleration in the rate of increases.
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Data Center Development Cost Guide – US Guide Highlights, source
