MANILA, July 7 — The cost of building the massive data centers that power artificial intelligence is climbing even higher, driven by a surge in thefts at construction sites that is adding millions of dollars in losses. According to the Uptime Institute, the average loss per theft incident at a data center construction site in 2024 was estimated at $150,000. That figure covers stolen materials, the cost of replacement equipment, and the financial hit from project delays.
And those delays can be punishing. Some specialized equipment, such as transformers, now have lead times of 12 to 18 months.
When thieves make off with components that take over a year to replace, the entire construction timeline unravels.
A costly problem for an expensive industry
The scale of investment in AI data centers is staggering. The total cost of construction for a large facility can exceed $1 billion. Industry reports indicate that thefts can add 5-10% to that budget.
Developers are not absorbing these losses quietly. The source material states that some of these costs are being passed on to customers, which include cloud service providers and the AI companies themselves.
This means the financial burden of site thefts is ultimately felt across the entire technology ecosystem. The problem is also driving up insurance costs. Industry reports show that insurance premiums for data center construction projects rose by 20% in 2025.
This adds another layer of financial pressure on developers already grappling with inflated budgets.
What it means for communities across Asia
For families and communities across the region, the impact is indirect but significant. The buildout of AI infrastructure is slowing down because of this financial burden. The problem is not confined to any one region.
Data center construction thefts are a global issue, but the consequences are felt most acutely in emerging markets where every dollar counts.
A growing challenge for AI’s future
The source material notes that AI data centers already require billions in investment. Thefts are adding millions more. The combination of long lead times for replacement equipment, rising insurance premiums, and the sheer scale of financial loss is creating a perfect storm for the industry.
Developers are now faced with a difficult calculation. They can invest more heavily in security — guards, cameras, fencing, and tracking systems — or they can accept the risk and pass the costs along.
Either way, the price of building the infrastructure for tomorrow’s technology is rising today. As the demand for AI continues to grow, the pressure to build more data centers will only intensify. The question now is whether the industry can get a handle on construction site theft before it becomes an even bigger drag on progress.
Sources
- Data Centers and Local Economies in the Age of AI: A Shift–Share …
- The Economic Impact of Data Centers in Iowa
