Planning a data center in Southern California? Investing in professional data center design build services helps you manage costs and avoid budget surprises. Whether you’re building a small enterprise facility or a large colocation center, knowing what drives expenses helps you make smarter decisions from the start.
Southern California offers strong grid access, fiber connectivity, and a skilled workforce. But these benefits come with higher price tags compared to other regions. Let’s break down what you can expect to spend.
Data Center Cost Factors and Breakdown
Why Data Center Costs Vary
Data center costs depend on several key factors. Size and power needs have the biggest impact. A 1 MW facility is far less expensive than a 10 MW build.
Tier classification and location also play a major role. A Tier II facility with basic redundancy costs less, while Tier III and Tier IV builds need duplicate systems that raise costs. At the same time, sites in Los Angeles or Orange County typically cost more than inland areas like Riverside or San Bernardino, where labor rates, permit fees, and land prices are more affordable.
Equipment availability is another factor. Delays in sourcing critical components such as chillers, UPS systems, and electrical switchgear can push schedules back and raise overall costs.
The Real Numbers: Cost Breakdown for Southern California Data Centers
Let’s put this in perspective with a real-world example. For a 10,000 square foot data center with 2 megawatts of IT capacity, here’s what you’re looking at:
| Cost Category | Cost per Sq Ft | Total Cost |
|---|---|---|
| Land Acquisition | $5.59 | $55,900 |
| Electrical Systems | $280 – $460 | $2.8M – $4.6M |
| HVAC/Mechanical/Cooling | $125 – $215 | $1.25M – $2.15M |
| Fire Suppression | $15 – $25 | $150K – $250K |
| Building Fit-Out | $520 – $900 | $5.2M – $9M |
| Total Development Cost | $600 – $1,100 | $6M – $11M |
Source: Industry data compiled from ConstructConnect, Cushman & Wakefield research, and Dgtl Infra.
Recent data from ConstructConnect shows that average data center costs have increased from $426 million to $499 million over the last twelve months. Even more striking: cost per square foot has jumped 47% year-over-year, climbing from $665 to $977.
Why the spike? AI and cloud computing demands are pushing developers to build more complex, power-dense facilities. These aren’t your grandfather’s server rooms. They’re sophisticated infrastructure requiring cutting-edge cooling, redundant power systems, and enterprise-grade security.
Major Cost Drivers: Electrical and Cooling
Electrical Costs
Electrical infrastructure takes the largest share of any data center budget. The system includes utility connections, backup generators, uninterruptible power supply (UPS) units, power distribution units (PDUs), and switchgear.
In Southern California, strong grid access helps, but robust backup systems are still needed. Costs rise further with high-density racks for AI or intensive workloads, which require larger transformers, more circuits, and advanced distribution.
Working with experienced electrical services providers early helps you avoid costly redesigns. They can assess your power needs, coordinate with utilities, and design systems for scalability.
HVAC and Cooling
Cooling makes up for nearly half of a data center’s total energy use. In Southern California’s warm climate, efficient HVAC services are essential for keeping equipment running and energy bills under control.
Most facilities rely on air-based cooling, but high-density environments may require liquid cooling or advanced containment strategies. These systems cost more upfront but improve performance and lower operating expenses long-term.
Southern California’s mild winters offer some advantages. Using economizers to bring in outside air during cooler months can reduce mechanical cooling loads.
Planning, Timeline, and Hidden Costs
Planning and Design
Smart planning sets the stage for a successful data center build. Skipping the design stage can cause delays, extra costs, and budget problems. A feasibility study helps you evaluate site options, power availability, and business requirements. Professional consulting services can guide you in choosing the right site, utility coordination, and initial design decisions.
Design and engineering typically take 6 to 12 months, covering layouts, equipment, and construction documents. Permitting in Southern California often adds 6 to 18 months, depending on location and project complexity. Starting these processes early keeps your timeline on track.
Construction Timeline
Once permits are secured, construction usually spans 12 to 24 months. Civil work and shell construction (the basic structure and foundation of the building) come first, followed by MEP installation (mechanical, electrical, and plumbing systems) for power, cooling, and fire protection. The final step is testing and commissioning, a 3 to 6 month process where all systems are verified under simulated real-world conditions to confirm the facility is ready for operation.
Hidden Costs to Watch For
Beyond construction expenses, several hidden costs can catch you off guard:
- Utility upgrades may fall on the property owner. If the local grid can’t support your power needs, you could face expenses for new transformers, lines, or substations.
- Ongoing maintenance starts immediately. Service contracts, spare parts, and trained staff are essential to keep systems running, and preventive maintenance avoids costly emergency repairs.
- Energy costs in Southern California run higher than the national average, making efficient design critical for controlling long-term operating expenses.
Managing Costs in Southern California
How to Control Costs Without Cutting Corners
Smart planning helps you build efficiently without sacrificing quality or reliability.
Order long-lead equipment early. Generators, chillers, and UPS systems take months to deliver. Securing them during design avoids delays and often lowers costs.
Use modular designs. Prefabricated power and cooling units reduce on-site labor, speed up construction, and make future expansions simpler.
Plan for growth. Designing electrical and cooling systems for future IT load increases is cheaper than retrofitting later.
Work with experienced partners. Data center specialists reduce risk, avoid common mistakes, and deliver faster results than general contractors.
Partnering with a full-service provider that offers data center design build services simplifies coordination and accountability. One team handling design, construction, and commissioning eliminates finger-pointing and keeps everyone focused on the same goals.
What Makes Southern California Different
Building in Southern California data center construction comes with unique challenges and advantages.
Labor costs run higher than most other regions, but these higher wages ensure access to skilled electricians, HVAC technicians, and other professionals experienced with complex data center systems.
Seismic requirements add engineering complexity. Facilities must meet strict standards for foundation design, equipment anchoring, and structural engineering. While this adds cost, it protects the long-term stability of your investment.
Permitting processes vary widely by jurisdiction. Some cities move quickly, while others require extensive reviews. Understanding local requirements and building relationships with permitting officials helps keep your project on schedule.
Climate advantages reduce cooling costs compared to hotter regions like Phoenix or Las Vegas. Southern California’s coastal areas benefit from mild temperatures year-round, which improves energy efficiency and lowers operating expenses.
Getting Started on Your Project
Building a data center in Southern California requires careful planning and expert support. Start by defining power needs, uptime goals, and site requirements.
Partnering with Camali Corp for consulting services ensures smoother design, permitting, and construction. With the right team, you can build a reliable, cost-efficient facility that supports your business for years to come.
