PHL posts lowest data centre construction costs in APAC

The Philippines offers the lowest construction costs for data centres in the Asia Pacific, a factor adding to the attractiveness of the country for the data centres market.

In its recently launched APAC data centre cost guide, Cushman & Wakefield said regional medium cost per megawatt (MW) in the Philippines registered at $4.59 million, according to its regional construction cost index.

Following the Philippines in terms of cheapest cost is Taiwan at $6.15 million cost per MW and Vietnam with a $6.7 million cost per MW.

In contrast, Japan registered the highest cost per MW in the region at $12.73 million.

This was followed by Singapore and South Korea with cost per MW of $11.2 million and $9.2 million, respectively.

“As a whole, Asia Pacific is attractive to investors for its comparatively low land and development costs and for the growth potential in both developed and emerging markets,” Cushman & Wakefield said.

“Although supply chain disruption and supply/demand imbalance for both labor and materials remain in recovery, raw material prices, energy and transport costs remain at an all-time high and continue to contribute towards record construction costs,” it added.

Overall, Cushman and Wakefield said the Asia Pacific market has seen an average increase of 4.9 percent on 2022 construction pricing.

In the same report, Cushman & Wakefield ranked Metro Manila as the eight market with the most expensive land costs for data centres in the Asia Pacific region, registering a medium average cost of $3,588 per meter squared.

In addition, Clark also ranked 36th in the index with land cost at $136 per meter squared.

Apart from Metro Manila, provincial locations, particularly Laguna, Batangas, Cavite also ranked 27th in the regional land cost index with medium average cost at $694 per meter squared.

Singapore ranked first in terms of the most expensive land costs at $11,573 per meter squared. This was followed by South Korean cities Seoul and Busan with land costs of $10,525 and $8,865 per meter squared, respectively.