{"id":1000453,"date":"2026-09-03T13:40:10","date_gmt":"2026-09-03T17:40:10","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/cushman-wakefield-releases-2026-data-center-development-cost-guide-citing-21-rise-in-per-mw-construction-costs\/"},"modified":"2026-09-03T13:40:10","modified_gmt":"2026-09-03T17:40:10","slug":"cushman-wakefield-releases-2026-data-center-development-cost-guide-citing-21-rise-in-per-mw-construction-costs","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/cushman-wakefield-releases-2026-data-center-development-cost-guide-citing-21-rise-in-per-mw-construction-costs\/","title":{"rendered":"Cushman & Wakefield Releases 2026 Data Center Development Cost Guide, Citing 21% Rise in Per-MW Construction Costs"},"content":{"rendered":"

<\/p>\n

Cushman & Wakefield Releases 2026 Data Center Development Cost Guide, Citing 21% Rise in Per-MW Construction Costs<\/b><\/p>\n

NEW YORK–(BUSINESS WIRE<\/a>)–
\nCushman & Wakefield (NYSE: CWK), a leading global commercial real estate services firm, has published its 2026 Data Center Development Cost Guide, revealing that data center construction costs have risen an average of 21% per megawatt (MW) since the previous edition was published in the fourth quarter of 2024.<\/p>\n

\nCovering markets across the United States and Canada, the guide provides a comprehensive overview of data center development economics spanning land acquisition, labor markets, construction costs, and capital expenditure trends across primary, secondary, tertiary, and frontier markets. It attributes rising development costs to worsening supply chain constraints, rising skilled labor wages, evolving land fundamentals, and escalating costs for critical components.<\/p>\n

\n“The data center industry is entering a new phase where access to power, land, and skilled labor are increasingly determining where growth can occur,\u201d said John McWilliams, Head of Data Center Insights at Cushman & Wakefield. \u201cOur 2026 Data Center Development Cost Guide shows that while development costs have risen significantly, demand for AI and cloud infrastructure continues to reshape investment patterns across North America. The result is an unprecedented pipeline of development that is extending beyond traditional hubs and into emerging markets with the scale and resources needed to support the next generation of digital infrastructure.”<\/p>\n

\nThe global data center development pipeline now represents approximately $2.3 trillion in investment capital, of which $492 billion is currently under construction and the remaining $1.8 trillion is tied to planned and precommitted projects. For context, this figure exceeds the estimated total market value of all New York City real estate by approximately $640 billion.<\/p>\n

\nAll-in greenfield development costs in the United States and Canada average $17.6M per megawatt for the most modern facilities, excluding chips and GPUs. Power infrastructure remains the single largest cost category, representing an average of 21% of total greenfield development costs, while contingencies rank second, reflecting ongoing uncertainty driven by long material lead times, labor shortages, and a shifting regulatory environment.<\/p>\n

\nLand acquisition activity has intensified across North America, with powered land in primary U.S. markets achieving average values of $584,000 per MW in 2026 year-to-date\u201435% above its five-year average and 51% higher year-over-year. Skilled labor shortages in the mechanical, electrical, and plumbing trades continue to compound cost pressures, driving a 5% average annual wage increase from 2021 to 2024, with even steeper growth recorded in secondary and tertiary markets.<\/p>\n

\nThe report also highlights a growing geographic shift in development activity. Frontier markets are projected to see capital expenditure grow 6.9-fold from current levels, reaching $631 billion, as developers seek locations with available land, accessible power, and more favorable regulatory conditions. Texas markets continue to rank among the lowest-cost development environments due to their business-friendly regulatory climate, lower construction labor costs, and mature contractor ecosystems.<\/p>\n

Click here<\/a> to view the report.<\/p>\n

About Cushman & Wakefield<\/b><\/p>\n

\nCushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for occupiers and investors with approximately 53,000 employees in over 350 offices and nearly 60 countries. In 2025, the firm reported revenue of $10.3 billion across its core service lines of Services, Leasing, Capital markets, and Valuation and other. Built around the belief that Better never settles<\/i>, the firm receives numerous industry and business accolades for its award-winning culture. For additional information, visit www.cushmanwakefield.com<\/a>.<\/p>\n

\"\"<\/p>\n

View source version on businesswire.com: <\/span>https:\/\/www.businesswire.com\/news\/home\/20260903969305\/en\/<\/a><\/span><\/p>\n

MEDIA CONTACT: <\/b><\/p>\n

\nSavannah Durban
\n
Savannah.durban@cushwake.com<\/a><\/p>\n

KEYWORDS:<\/b> New York United States North America<\/p>\n

INDUSTRY KEYWORDS:<\/b> Commercial Building & Real Estate Construction & Property<\/p>\n

MEDIA:<\/b><\/p>\n\n\n\n\n
Logo<\/b><\/font><\/td>\n<\/tr>\n
\"Logo\"<\/td>\n<\/tr>\n
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Cushman & Wakefield Releases 2026 Data Center Development Cost Guide, Citing 21% Rise in Per-MW Construction Costs NEW YORK–(BUSINESS WIRE)– Cushman & Wakefield (NYSE: CWK), a leading global commercial real estate services firm, has published its 2026 Data Center Development Cost Guide, revealing that data center construction costs have risen an average of 21% per megawatt (MW) since the previous edition was published in the fourth quarter of 2024. Covering markets across the United States and Canada, the guide provides a comprehensive overview of data center development economics spanning land acquisition, labor markets, construction costs, and capital expenditure trends across primary, secondary, tertiary, and frontier markets. It attributes rising development costs to worsening supply chain constraints, rising skilled labor wages, … <\/p>\n

Continue reading “Cushman & Wakefield Releases 2026 Data Center Development Cost Guide, Citing 21% Rise in Per-MW Construction Costs”<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-1000453","post","type-post","status-publish","format-standard","hentry"],"yoast_head":"\nCushman & Wakefield Releases 2026 Data Center Development Cost Guide, Citing 21% Rise in Per-MW Construction Costs - Market Newsdesk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.marketnewsdesk.com\/index.php\/cushman-wakefield-releases-2026-data-center-development-cost-guide-citing-21-rise-in-per-mw-construction-costs\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Cushman & Wakefield Releases 2026 Data Center Development Cost Guide, Citing 21% Rise in Per-MW Construction Costs - Market Newsdesk\" \/>\n<meta property=\"og:description\" content=\"Cushman & Wakefield Releases 2026 Data Center Development Cost Guide, Citing 21% Rise in Per-MW Construction Costs NEW YORK–(BUSINESS WIRE)– Cushman & Wakefield (NYSE: CWK), a leading global commercial real estate services firm, has published its 2026 Data Center Development Cost Guide, revealing that data center construction costs have risen an average of 21% per megawatt (MW) since the previous edition was published in the fourth quarter of 2024. Covering markets across the United States and Canada, the guide provides a comprehensive overview of data center development economics spanning land acquisition, labor markets, construction costs, and capital expenditure trends across primary, secondary, tertiary, and frontier markets. 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