KUALA LUMPUR (April 1): Malaysia’s data centre construction costs have reached a high of US$12 million (RM48.26 million) per megawatt (MW), with a mid-range cost of US$9.6 million per MW, according to a statement by Cushman & Wakefield on Wednesday.
The Malaysian market recorded a 9.3% year-on-year increase in construction costs as artificial intelligence (AI) accelerates and reshapes how facilities are designed, powered, and built.
In established regional hubs like Tokyo, Singapore, Taipei and Johor, competition for power-accessible sites, grid capacity constraints, and longer connection timelines are increasing development complexity and delivery risk.
Pritesh Swamy, Cushman & Wakefield head of research and advisory for the Data Centre Group in Asia Pacific, said, “AI is transforming data centre design far faster than traditional development cycles anticipated. Each new generation of high-performance hardware demands more power, more cooling and greater structural resilience. These requirements are redefining what it means to build a future-ready facility, and markets that can meet them effectively are pulling ahead while others face rising delivery and cost pressures.”
Data centre construction costs across the broader Asia Pacific (APAC) region now range from US$7.9 million to US$19.2 million per MW.
Japan remains the region’s most expensive market at US$19.2 million per MW, followed by Singapore at US$17.9 million per MW, while Taiwan is the lowest at US$7.9 million per MW.
Andrew Green, Cushman & Wakefield head of Data Centre Group, Asia Pacific, said, “Across Asia Pacific, construction cost inflation diverges sharply, with some markets seeing increases above 15% while others remain below 5%.”
Green added, “A key reason for this split is that AI is reshaping the physical and technical requirements of data centres, particularly at the shell and core level. Higher power density, more complex cooling systems and stronger structural requirements are becoming standard in AI-ready facilities, with very different cost implications depending on local power availability, labour capacity and delivery conditions.”
Procurement conditions are also contributing to uneven cost outcomes as price differences between Chinese and non-Chinese suppliers widen, while longer equipment lead times and the growing adoption of prefabricated and modular construction add variability to project budgets.
Sam Asher, Cushman & Wakefield head of development and commercial advisory, project and development services, Asia Pacific, said, “Developers across the region are navigating a more complex delivery environment. Power readiness, procurement decisions and site conditions have become central to project feasibility, particularly for AI-focused builds that require higher density infrastructure and faster deployment timelines.”
Many legacy facilities are proving difficult to retrofit for high-density AI workloads, steering owners toward alternative uses such as edge computing, warm storage, and interconnection hubs.