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
Careful planning sets the foundation for a successful California data center build. Skipping design or feasibility studies can lead to delays, unexpected costs, and budget overruns. A thorough assessment evaluates site options, power availability, and business requirements, while professional consulting services guide utility coordination and early design decisions. Design and engineering usually take six to twelve months, covering layouts, equipment selection, and construction documents. Permitting in Southern California can add six to eighteen months depending on location and project complexity, so starting early helps keep your project on schedule.
Construction Timeline
Once permits are secured, construction typically lasts twelve to twenty-four 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 three to six 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, several costs can catch facilities off guard. Utility upgrades may fall to the owner if the local grid cannot meet power demands, requiring new transformers, lines, or substations. Ongoing maintenance begins immediately, with service contracts, spare parts, and trained staff essential to avoid costly emergency repairs. Energy costs in California are higher than the national average, so efficient design and proper system sizing are critical to controlling long-term operating expenses.
Managing Costs in Southern California
How to Control Costs Without Cutting Corners
Smart planning is key to building efficiently while maintaining quality and reliability. Ordering long-lead equipment like generators, chillers, and UPS systems during the design phase avoids delays and can reduce costs. Modular designs, including prefabricated power and cooling units, speed construction, lower on-site labor, and simplify future expansions. Planning electrical and cooling systems for anticipated IT load increases is cheaper than retrofitting later. Working with experienced partners who understand data center systems reduces risk and ensures faster, smoother results.
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
Southern California data center construction presents unique challenges and advantages. Labor costs are higher than other regions, but they provide access to skilled electricians, HVAC technicians, and other experts experienced with complex data center systems. Seismic requirements add engineering complexity, requiring strict foundation design, equipment anchoring, and structural engineering, which protect long-term stability. Permitting timelines vary by jurisdiction, so understanding local rules and building relationships with officials helps keep projects on track. Climate advantages in coastal areas reduce cooling expenses compared with hotter regions like Phoenix or Las Vegas. Mild temperatures improve energy efficiency and lower operating costs, giving Southern California facilities a long-term advantage.
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.
