AI Data Center Construction Costs Surge in the U.S.

Cost of Building AI Data Centers in the U.S. Soars by About 50%

The cost of building AI data centers in the U.S. has surged by about 50%, driven by rising labor costs and equipment shortages.

Mercation Admin

May 31, 2026 1 min read

Cost of Building AI Data Centers in the U.S. Soars by About 50%

In the U.S., the average cost of constructing an AI data center has risen from approximately $8 million per megawatt to between $11.5 million and $12 million over the past few years. Core Scientific CEO Adam Sullivan attributes this increase primarily to rising labor costs, a shortage of equipment, and stricter technical requirements. Despite the challenging business environment, he believes that deals for large-scale data center construction will still be made at margins of 12-14% from the design stage.