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What it costs to build a data center and how much can one make from it

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Based on various announcements of big investments in new data centers in India, JM Financial estimates that the average capital expenditure needed would be ₹46.5 crore ($5.4 million) for each megawatt (MW) capacity, making the country one of the cheapest places in the world to build one. The latest estimate is 20% lower than the $6.8 per MW cost estimated by Cushman and Wakefield at the end of 2023, despite a drop of over 25% in th value of the rupee against the US dollar.

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How much does it cost to build a data center? The cost is measured in terms of the power required to run a data center and it is expressed, generally, in kilowatts, megawatts, gigawatts and so on. Based on various announcements of big investments in new data centers in India, JM Financial estimates that the average capital expenditure needed would be ₹46.5 crore ($5.4 million) for each megawatt (MW) capacity, making the country one of the cheapest places in the world to build one. The latest estimate is 20% lower than the $6.8 per MW cost…

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