Latest news with #Turner&Townsend
BusinessToday
5 days ago
- Business
- BusinessToday
Malaysia's Construction Sector Remains Resilient Amid Trade Tensions And Cost Shifts
Southeast Asia's construction sector is demonstrating robust resilience and adaptability despite prevailing global economic headwinds and geopolitical uncertainties, according to the latest Global Construction Market Intelligence (GCMI) report 2025 released by Turner & Townsend, a global professional services company. The report, which provides an in-depth analysis of construction costs across 99 markets worldwide, highlights Southeast Asia's increasing competitiveness added that while construction costs are rising in certain areas, the region is experiencing a significant surge in demand for critical infrastructure, particularly data centres, alongside a strong shift towards sustainable building practices. These combined factors are positioning Southeast Asia as an increasingly attractive destination for global investment in the built environment. Brian Shuptrine, Asia Managing Director at Turner & Townsend, commented on the findings: 'We are seeing dynamic trends across Southeast Asia, where markets are not merely navigating global economic headwinds but actively seizing opportunities for growth through recalibration of costs and demand. The region's commitment to digital transformation and sustainability, and the strategic advantages of nearshoring, are fundamentally reshaping the construction landscape. This translates into significant opportunities for clients investing in future-proof assets, particularly within the rapidly expanding data centre developments and advanced manufacturing sectors.' The report stated that the Malaysian construction sector is poised for continued growth, propelled by public infrastructure projects like the MRT3 Circle Line and Penang LRT, as well as robust private sector demand for digital infrastructure, notably data centres. While Kuala Lumpur maintains relatively low costs at US$1,354 per m², the recent expansion of the Sales and Service Tax (SST) to cover most construction work services (excluding residential buildings) introduces new cost pressures. The industry is responding by embracing digital solutions and collaborative models to protect profitability and increase competitiveness, with a gradual shift towards greener building practices like reducing embodied carbon. As for Singapore, the sector remains one of Southeast Asia's most expensive markets, with average construction costs at US$3,104 per m². Despite anticipated inflation of 3.0% in 2025 and 5.0% in 2026, construction activity remains strong, with contract awards in the first four months of 2025 up approximately 60% compared to the same period in 2024. Challenges persist with tight contractor capacity, skilled labour shortages (especially in MEP trades), and rising waste management costs, driving interest in collaborative contracting models. Meanwhile, Jakarta offers one of the region's most cost-competitive construction markets in Indonesia at US$943 per m², with a steady escalation of 3.0%. The market is gaining gradual momentum, primarily driven by strong activity in the data centre sector as Indonesia's digital economy expands. Local developers are increasingly securing large-scale data centre projects, showcasing growing in-country capabilities. However, reliance on high-quality imported materials for major projects can strain budgets. Regional Challenges and Opportunities: A significant concern across Southeast Asia is the persistent shortage of skilled labour, particularly in Mechanical, Electrical, and Plumbing (MEP) trades, affecting 90.9% of Asian markets, including Singapore, Malaysia, Indonesia, and Vietnam. This underscores the urgent need for investment in training and local workforce development to meet surging demand for green-collar professionals. Sumit Mukherjee, Managing Director of Southeast Asia and Head of Real Estate of Asia at Turner & Townsend, emphasized that while cost remains critical, the focus is increasingly shifting towards value, efficiency, and supply chain resilience. 'The abundance of materials, especially from China, offers opportunities for faster and more cost-effective project delivery in some markets,' Mukherjee stated. The report further indicates that data centers have overtaken industrial, manufacturing, and distribution as the top-performing construction sector in Southeast Asia, reflecting the soaring demand for digital infrastructure. Corporate occupier activity has also rebounded, with a modest uptick in hospitality, sports, and leisure developments as tourism recovers. Looking ahead, nearshoring trends and the escalating demand for advanced manufacturing facilities are key drivers of heightened construction activity. Markets like Vietnam and Malaysia could benefit from a potential redirection of surplus Chinese material supplies if reciprocal tariffs with the U.S. persist, which could accelerate delivery, manage costs, and boost local manufacturing capacity. However, Malaysia's recent trade policy changes, including anti-dumping duties, introduce some uncertainty regarding future costs and supply chain decisions. Turner & Townsend advises clients to prioritise upskilling domestic workforces and strengthening local supply chains to mitigate risks, improve cost control, and ensure successful project delivery in the region's dynamic and growing construction landscape. Related
Newsweek
5 days ago
- Business
- Newsweek
US Cities Among World's Most Expensive To Build In
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Five cities in the U.S. now rank among the world's 10 most expensive places to build, new data suggests - with New York City maintaining the top spot for construction costs worldwide. New York, San Francisco, Los Angeles, Chicago, and Philadelphia are among the cities with the steepest costs for construction projects, according to Turner & Townsend's 2025 Global Construction Market Intelligence report. Why It Matters The ranking could be due in part to a combined impact of labor shortages and rising material prices on ongoing and future U.S. projects, analysts say. This trend complicates efforts to address the country's housing shortage, with Turner & Townsend forecasting construction inflation to remain above target into 2026. What To Know New York City is in first place in the study, followed by San Francisco. Three European cities - Zurich, Geneva and London - are the next most expensive in which to build, followed by Los Angeles, Chicago, and Tokyo. Philadelphia placed ninth in the ranking, with the Japanese city of Sapporo in tenth. The study attributed the high costs in U.S. cities to soaring labor rates and an ongoing shortage of skilled construction workers, challenges which have been intensified by a national housing crunch. Construction work continues April 8, 2025 at the site of a 15-story jail complex in the Brooklyn borough of New York City. Construction work continues April 8, 2025 at the site of a 15-story jail complex in the Brooklyn borough of New York City. Getty Images The Turner & Townsend report noted that 87 percent of North American construction markets continued to report skills shortages, particularly in specialized trades such as mechanical, engineering, and plumbing. Neil Bullen, managing director of global real estate at Turner & Townsend, said: "We're seeing shifting priorities and challenges across the globe. Geopolitical tensions and increasing polarisation are changing where and how investment flows." The study said these factors had led to escalating construction inflation, with U.S. construction labor costs averaging $76 per hour, and reaching as high as $131.4 per hour in New York. The results come as President Donald Trump announced a new 50 percent tariff on copper imports on Wednesday, citing the metal's strategic importance for defense and infrastructure. The tariff is set to come into effect on August 1, according to the president's announcement on Truth Social. What People Are Saying Anirban Basu, chief economist of Associated Builders and Contractors, told Newsweek: "Construction input prices increased at a rapid pace for the third consecutive month in March and have now risen at a 9.7 percent annualized rate through the first quarter of 2025. "The emerging effects of tariffs are glaring in the March data release, with iron and steel, steel mill products and copper wire and cable prices all rising more than 5 percent for the month." What Happens Next With industry experts and policymakers fearing US construction costs are likely to stay elevated due to both global and domestic factors, they face difficult decisions about boosting supply and containing inflation. As tariffs and skills shortages persist, the affordability crisis may deepen, affecting both commercial and residential development in major American cities.
Extra.ie
09-07-2025
- Business
- Extra.ie
Revealed: Dublin tops list of EU cities with most expensive building costs
It costs more to build in Dublin than in any other EU city, an independent report has found. The consultancy company Turner & Townsend's Global Construction Market Intelligence report shows that average construction costs in the capital are now €3,692 per square metre. The study attributes the expense of building in Dublin to investment in data centres and commercial property as well as mounting pressure from the Government's pledge to deliver more than 300,000 new homes by the end of the decade. It costs more to build in Dublin than in any other EU city, an independent report has found. Pic: Shutterstock It also points to skills shortages, digital adoption gaps and regulatory hurdles as risks that could further hinder delivery and make building more expensive. 'While Ireland's construction market shows resilience and sustained demand, particularly in high-tech and residential sectors, cost pressures and structural challenges threaten to limit capacity just when it's most needed,' said Philip Matthews, managing director at Turner & Townsend Ireland. In the EU costs table, Munich, Frankfurt, Vienna and Copenhagen follow Dublin, while overall, our capital's building costs are the 18th highest in the world. In the EU costs table, Munich, Frankfurt, Vienna and Copenhagen follow Dublin, while overall, our capital's building costs are the 18th highest in the world. Pic: Shutterstock Despite concerns about pressure on the national grid, demand for data centres continues to rise, especially as the adoption of artificial intelligence drives European digital infrastructure needs. The report also forecasts regional inflation in Ireland will decline from 2.9% to 2.4% this year, offering some short-term stability. All European markets reported insufficient mechanical, electrical and plumbing labour availability, reducing the capacity of the Irish construction sector. Furthermore, less than half of Irish clients are pursuing digital transformation or building information modelling, compared with a majority of companies in Zurich, Geneva and Copenhagen. Overall, more than six in ten European respondents cited bureaucracy and delayed approvals as a constraint. 'Despite these challenges, the report highlights balanced market conditions in Ireland, with continued investor confidence. Ireland's challenge now is to build smarter, not just more,' added Mr Matthews. 'Targeted upskilling and streamlined planning are essential if we are to match ambition with delivery.' It comes as the latest AIB Construction PMI report found that construction output declined at an accelerated pace in June, driven by contraction in housing and civil engineering sub-sectors.
AU Financial Review
08-07-2025
- Business
- AU Financial Review
The most expensive city for building is getting pricier
Brisbane is the country's most expensive market to build in due to the state's ambitious infrastructure investment program, and it will only get more expensive in the race towards the 2032 Olympics. It now costs about $5009 per square metre to build in Brisbane, above Sydney at $4866 and Melbourne at $4242 – the nation's second-cheapest city to build – research from construction consultancy firm Turner & Townsend reveals.
Yahoo
15-05-2025
- Business
- Yahoo
Data Center Construction Cost in Mumbai Lower Compared to Tokyo and Sydney
With 121 colocation centers, India aims to dominate the APAC region, spurred by cloud service expansion. Key locations include Maharashtra and Tamil Nadu. Indian Data Center Market Dublin, May 15, 2025 (GLOBE NEWSWIRE) -- The "India Data Center Market - Investment Analysis & Growth Opportunities 2025-2030" report has been added to Indian Data Center Market was valued at USD 6.48 Billion in 2024, and is projected to reach USD 10.70 Billion by 2030, rising at a CAGR of 8.72%. KEY HIGHLIGHTS The number of third-party data center facilities in the India data center market is actively growing, with a good start the country is aiming to become an established market in the APAC region and has around 121 existing colocation data centers spread across the country, with most of them being in Maharashtra, Uttar Pradesh and Tamil Nadu. Wholesale colocation continues to dominate the colocation market in India, with a higher capacity and market share compared with retail colocation. The demand for wholesale colocation is expected to grow owing to the growth in the use of cloud-based services. Cloud operators are likely to store part of their workloads via wholesale colocation. A strategic integration of technological innovation, sustainability, and global partnerships is evident in the Indian data center market. This dynamic environment revolutionizes the digital economy of India and makes it more competitive internationally in terms of digital infrastructure. According to Turner & Townsend's Data Center Cost Index for 2024, the construction cost of data centers in Mumbai is $6.60 per watt, which is comparatively lower in comparison with Japan's Tokyo and Australia's Sydney. The costs are expected to rise year over year due to several factors, including supply chain issues, inflation, and interest rates. Data Center Policy formulated by states individually gives an edge for attracting investments into respective states. Currently, states like Maharashtra, Uttar Pradesh, Tamil Nadu, Telangana, Karnataka, West Bengal, and other states have their own data center policy focused on ease of setting up businesses. WHY SHOULD YOU BUY THIS RESEARCH? Market size available in the investment area, power capacity, and India colocation market revenue. Assessment of the data center investment in India by colocation, hyperscale, and enterprise operators. Data center investments in the area (thousand square feet) and power capacity (MW) across cities in the country. A detailed study of the existing India data center market landscape, an in-depth market analysis, and insightful predictions about the India data center market size during the forecast period. Snapshot of existing and upcoming third-party data center facilities in India Facilities Covered (Existing): 121 Facilities Identified (Upcoming): 87 Coverage: 25+ Cities Existing vs. Upcoming (Data Center Area) Existing vs. Upcoming (IT Load Capacity) Data center colocation market in India Colocation Market Revenue & Forecast (2021-2030) Wholesale vs. Retail Colocation Revenue (2021-2030) Retail Colocation Pricing Wholesale Colocation Pricing The India data center landscape market investments are classified into IT, power, cooling, and general construction services with sizing and forecast. A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry. Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry. A transparent research methodology and the analysis of the demand and supply aspects of the market. INDIA DATA CENTER MARKET VENDOR LANDSCAPE The India data center market is primarily dominated by operators, including NTT DATA, CtrlS Datacenters, Sify Technologies, Nxtra by Airtel, ST Telemedia Global Data Centres, AdaniConneX, Yotta Infrastructure, Princeton Digital Group, Iron Mountain, Colt Data Centre Services, Equinix, Digital Connexion, and others. In September 2024, Princeton Digital Group announced its plan to invest around USD 1 billion to expand its data center portfolio across Chennai and Mumbai. The company aims to expand its MU1 data center campus in Mumbai by adding three new buildings and developing a new data center campus, CH1, in Chennai. The India data center market is also witnessing investment from several new entrants, which include CapitaLand, Digital Edge, Everstone, Lumina CloudInfra, and others. All the major cloud operators, such as Microsoft, Google, Amazon Web Services, Oracle, Tencent Cloud, Alibaba Cloud, and others, operate in the India data center market with their own dedicated cloud regions. Hyperscale operators such as Amazon Web Services, Microsoft, and Google are involved in the development of self-built data center facilities in the India data center market. For instance, in 2024, hyperscale data center operators contributed to 13.4% of the overall data center investments in India, and this share is likely to increase and reach around 14.8% by 2030. EXISTING VS. UPCOMING DATA CENTERS Existing Facilities in the Region (Area and Power Capacity) Maharashtra Uttar Pradesh Tamil Nadu Telangana Other States List of Upcoming Facilities in the Region (Area and Power Capacity) Maharashtra Uttar Pradesh Tamil Nadu Telangana Other States IT Infrastructure Providers Arista Networks Atos Broadcom Cisco Systems Dell Technologies Fujitsu Hitachi Vantara Hewlett Packard Enterprise Huawei Technologies IBM Lenovo NEC Oracle NetApp Data Center Construction Contractors & Sub-contractors AECOM Advanced India Projects (AIPL) AHLUWALIA CONTRACTS (INDIA) DEC Infra DSCO Group Edifice Consultants Emerge Engineering Krishna Buildestates (KBE) Larsen & Toubro Listenlights Nikom InfraSolutions Prasa Tata Projects Techno Electric & Engineering Turner & Townsend Vastunidhi Architects Support Infrastructure Providers 3M ABB Alfa Laval BlueBox by Swegon Bloom Energy Caterpillar Climaveneta Cummins Delta Electronics Eaton Fuji Electric HITEC Power Protection Johnson Controls Kirloskar Oil Engines Legrand NetRack Enclosures Panduit Riello Elettronica Rittal Rolls-Royce Schneider Electric Siemens STULZ Vertiv Data Center Investors AdaniConneX Amazon Web Services Bridge Data Centres BSNL Colt Data Centre Services CtrlS Datacenters Cyfuture Digital Connexion Equinix Microsoft NTT DATA Nxtra by Airtel OVHcloud Pi DATACENTERS Princeton Digital Group RackBank Reliance Jio Sify Technologies ST Telemedia Global Data Centres VueNow Iron Mountain Yotta Infrastructure New Entrants CapitaLand Digital Edge Everstone Group Lumina CloudInfra SLG Capital Key Attributes: Report Attribute Details No. of Pages 175 Forecast Period 2024 - 2030 Estimated Market Value (USD) in 2024 $6.48 Billion Forecasted Market Value (USD) by 2030 $10.7 Billion Compound Annual Growth Rate 8.7% Regions Covered India REPORT COVERAGEThis report analyses the Indian data center market share. It elaborately analyses the existing and upcoming facilities and investments in IT, electrical, mechanical infrastructure, general construction, and tier standards. It discusses market sizing and investment estimation for different segments. The segmentation includes: Facility Type Colocation Data Centers Hyperscale Data Centers Enterprise Data Centers IT Infrastructure Server Infrastructure Storage Infrastructure Network Infrastructure Electrical Infrastructure UPS Systems Generators Transfer Switches & Switchgears PDUs Other Electrical Infrastructure Mechanical Infrastructure Cooling Systems Rack Other Mechanical Infrastructure Cooling Systems CRAC and CRAH Units Chillers Units Cooling Towers, Condensers and Dry Coolers Other Cooling Units General Construction Core & Shell Development Installation & Commissioning Services Building & Engineering Design Fire Detection & Suppression Systems Physical Security DCIM Tier Standard Tier I & Tier II Tier III Tier IV Geography Maharashtra Uttar Pradesh Tamil Nadu Telangana Other States For more information about this report visit About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. Attachment Indian Data Center Market CONTACT: CONTACT: Laura Wood,Senior Press Manager press@ For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
