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Data Center Construction in 2026: Costs, Timelines and Constraints

Data center construction costs depend on scope, while power access, equipment lead times and skilled labor shape when capacity can be delivered.
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Building a commercial data center is as much a power-and-delivery challenge as a construction project. JLL Research’s 2026 outlook puts average global shell-and-core construction cost for a modeled 50 MW air-cooled facility at $11.3 million per MW in 2026, while its reported global average build time for a 50 MW data center is 18 months. Neither figure captures every project: grid access, equipment, labor, location, cooling and tenant technology fit-out can change both cost and schedule substantially.

How much does it cost to build a data center?

Start by identifying what a cost estimate includes. JLL Research’s 2026 outlook estimates average global shell-and-core construction cost at $10.7 million per MW in 2025 and forecasts $11.3 million per MW in 2026. The model is a single-tenant, 50 MW, air-cooled data center; it excludes land acquisition and active IT equipment. JLL reports that the modeled average rose from $7.7 million per MW in 2020 to $10.7 million per MW in 2025, a 7% compound annual growth rate.

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Cost item Reported figure Scope and qualification
Global shell and core $10.7 million per MW in 2025; $11.3 million per MW forecast for 2026 JLL Research, 2026 outlook. Single-tenant, 50 MW, air-cooled model; excludes land and active IT equipment.
Liquid-cooling premium 10% JLL Research, 2026 outlook; premium for liquid-cooled facilities in its cost model.
Multistory addition 20% JLL Research, 2026 outlook; addition cited for multistory facilities in the Americas.
AI tenant technology fit-out Up to $25 million per MW JLL Research, 2026 outlook; an upper figure for tenant technology fit-out, not shell-and-core construction or a universal project cost.

These are different scopes, not components that can be added indiscriminately. A project budget should separately establish building shell and core, land, power infrastructure, cooling design, building form, and the tenant’s IT and technology fit-out. The JLL model’s per-MW average is a market benchmark, not a quote for a specific site or an all-in cost.

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How long does data center construction take?

JLL Research’s 2026 outlook reports an 18-month global average build time for a 50 MW data center. That is not a universal end-to-end schedule, and equipment lead time is not the same thing as project duration. Site control, utility interconnection, approvals, design, procurement, construction and commissioning are separate activities that can overlap and vary by market.

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Equipment remains a schedule risk. JLL Research’s 2026 outlook reports a global average data center equipment lead time of 33 weeks, 50% above pre-2020 levels. Its U.S. average was 42 weeks, 83% above 2019. Transformers, generators, switchgear, batteries and UPS, cooling equipment and related systems are among the long-lead categories. JLL also reports that 57% of data center projects experienced delays of at least three months in 2025, and that developers preordered select materials as much as 24 months in advance.

These are reported averages and observations, not guarantees for a particular development. CBRE also identifies shortages of electricians, mechanics, plumbers, laborers and construction workers as pressures on greenfield development. A schedule needs to account for the availability of those trades as well as equipment, utility capacity and approvals.

Why is power a development constraint?

Power access affects whether a site is viable and when it can deliver capacity; it is not merely an operating expense to consider after construction. JLL reports that speed to power is the leading site-selection criterion and that North American grid connection timelines average four years or longer. CBRE’s H2 2025 account says grid capacity for existing projects was largely booked through 2030 in most markets it covered. These observations are tied to their report periods and markets, not a rule for every site or country.

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JLL says developers that coordinate with utilities around flexible load profiles, phased power requirements or backup generation may expedite grid connections. CBRE also describes more projects incorporating on-site power strategies. Neither approach removes the need to confirm a site-specific interconnection path, approvals, infrastructure requirements and timing.

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There is no single power requirement that can be applied to every new data center. The material here gives a 50 MW basis for JLL’s modeled cost and build-time figures, but it does not establish a universal capacity for a new facility. A developer must size the project against its intended IT load, cooling approach, phasing and available utility supply.

How should developers assess a site?

Power is central, but a fast grid connection alone does not make a location suitable. JLL identifies community support, latency and customer proximity as additional location considerations. CBRE also points to fiber, labor and site-power issues. Compare candidate sites against the full set of delivery and operating constraints:

  • Expected time to reliable grid power, utility coordination and the feasibility of phased load or backup strategies.
  • Land availability, permitting requirements and community response.
  • Fiber access, latency and proximity to customers.
  • Availability of electricians, mechanics, plumbers and other construction workers.
  • Cooling requirements, building form and their effects on cost and delivery.

These factors help explain why developers are considering locations beyond long-established hubs. JLL’s year-end 2025 North American report says 64% of its 35 GW construction pipeline was outside traditional mature markets, and reports 6.5 GW under construction in Texas. JLL identifies energy resources and land availability among emerging-market advantages. Those potential advantages still need to be weighed against power timing, network access, permitting and workforce availability at each site.

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What do current North American construction figures show?

North American market snapshots show substantial planned and ongoing development, but the figures use different publisher definitions and coverage. They describe capacity under construction or in a pipeline, not completed operational capacity.

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Publisher and period Reported market measure How to read it
JLL, year-end 2025 39 GW of active capacity across North America; 35 GW construction pipeline; 6.5 GW under construction in Texas JLL’s regional coverage and pipeline definitions. JLL also reported tenants contracting for deliveries in 2027 and 2028.
CBRE Research, H1 2026 7,481 MW under construction across eight primary North American markets; more than 80% preleased CBRE said less than 1,500 MW remained available for preleasing, about six months of supply at the then-current demand pace. Its update also reported 1.4% vacancy at year-end 2025.
CBRE Research, H1 2026 Nearly 2,900 MW under construction in Atlanta Atlanta was the most active construction market in CBRE’s eight-market North American set at that time.

CBRE reported that the 7,481 MW under-construction total was 24.8% higher than the prior half-year comparison in its H1 2026 update. That is a period-specific change, not a global growth rate. The CBRE eight-market series and JLL’s North American pipeline are not directly additive: their market coverage, definitions and reporting periods differ.

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How do modular data centers work?

Modular delivery moves some systems or assembly work into prefabricated units. JLL describes a range from modules that perform one function, such as power skids, to complete micro data centers that encompass data-center systems. Factory-based assembly and repeatable designs can improve installation speed and construction efficiency, but they do not guarantee a faster or cheaper project.

JLL forecasts annual global sales of modular systems and micro data centers could reach $48 billion by 2030, up from $11 billion in 2025. These are market forecasts, not evidence that a particular project will be faster, less expensive or technically suitable. Assess modular delivery against the project’s actual constraints:

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  • Potential value: factory work and repeatable assembly may reduce the amount of installation work required on site.
  • Design fit: determine whether standardized modules meet the required capacity, cooling design and degree of customization.
  • Site and logistics: check transport routes, delivery sequencing, site readiness and space for installation.
  • Approvals and integration: establish how local codes, permitting, system interfaces and commissioning will be handled.
  • Scale: compare the modular solution with the size and phasing of the specific development rather than assuming one delivery method suits all projects.

Modularization is one response to schedule pressure. Its value depends on whether factory fabrication and repeatability outweigh transport, integration, site and design constraints for the project in question.

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