Data Center Construction Costs Expected to Reach $57 Million per Megawatt

Bank of America estimated the cost of building data centers at approximately $49 million per megawatt, with IT-related expenses accounting for 78% of total spending. The cost rises to about $57 million per megawatt for AI-specialized data centers, known as Neocloud, which aim to run AI applications. Servers are the most expensive component, costing around $31.4 million per megawatt. Bank of America Global Research predicts global spending on data centers will reach $1 trillion by 2026, before more than doubling to $2.1 trillion by 2028, driven by increasing demand for AI services.