The cost of building AI data centers in the United States has surged significantly, with average expenses climbing from around $8 million per megawatt to between $11.5 million and $12 million in recent years. Adam Sullivan, CEO of Core Scientific, cites several factors for this steep increase, including rising labor costs, equipment shortages, and more stringent technical standards. Despite these hurdles, Sullivan remains optimistic that major contracts for large-scale data center projects can still yield profit margins of 12-14% from the design phase onward.