Middle East Ranked Cheapest Region to Build Data Centres

The Middle East has been ranked the world’s least expensive region for data centre construction, with average costs of $9.93 per watt, according to Turner & Townsend’s latest Data Centre Construction Cost Index.

That compares with $12.76 per watt in Europe, $12.10 in Asia and $12.06 in North America. Within the 62-market index, the UAE ranked among the lowest-cost markets at $9.20 per watt, while Qatar stood at $9.80 and Saudi Arabia at $10.80.

Turner & Townsend said the region’s lower construction and energy costs, alongside government-backed investment in artificial intelligence infrastructure, are strengthening its position in large-scale data centre development. The report pointed to Saudi Arabia’s HUMAIN initiative and continued investment in the UAE through companies including G42 and Khazna.

The findings are based on more than 500 live or recently completed projects and a survey of over 400 industry experts. Globally, 52% of respondents reported construction cost increases above 6% in 2026, while around one in five reported inflation above 15%.

Power access remains one of the sector’s biggest constraints. Around 56% of respondents identified it as a major obstacle, with more than half reporting utility connection timelines of one to two years and nearly a third saying connections can take longer than two years.

Tokyo was the most expensive market in the index at $18.28 per watt, followed by Zurich at $15.93, Singapore at $15.39 and Silicon Valley at $15.01. At the other end of the ranking, Shanghai stood at $5.79 per watt, Mumbai at $6.83 and Ho Chi Minh City at $8.32.