Bloomberg intelligence estimates cost of 1gw AI data center exceeds $307 billion in texas

Bloomberg Intelligence recently released a report detailing the costs of constructing a 1GW AI data center in Abilene, Texas. According to the report, the total cost could reach $307 billion, equivalent to approximately 2,058.69 billion yuan at current exchange rates. The report, which combines data from Cushman & Wakefield and internal analysis, breaks down the cost into ten major categories. Core components such as chips and servers account for over half the cost, at $171 billion, followed by power infrastructure at $30 billion and cooling systems at $16.6 billion. Network cabling costs amount to $10.7 billion. Additional expenses include land purchase at $1.8 billion, design engineering at $3.61 billion, construction at $24 billion, contingency funds at $27.9 billion, and miscellaneous costs at $3.82 billion. The report highlights the significant financial commitment required for large-scale AI infrastructure, emphasizing the complexity and scale of such projects. Bloomberg Intelligence’s analysis underscores the growing investment in data centers as a critical component of the AI industry’s expansion.