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ARTICLE · 19 AUGUST 2025

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How Tariffs Are Changing The Math Of Data Centre Construction—and How Canada Is Maintaining A Competitive Edge

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Tariffs have created new challenges for data centre construction through increased costs on a range of imported materials and components—and even small increases in prices or supply chain disruptions...

CanadaInternational Law
Natalia E. Iamundo
Natalia E. Iamundo
Michelle F. Yung
Michelle F. Yung
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Tariffs have created new challenges for data centre construction through increased costs on a range of imported materials and components—and even small increases in prices or supply chain disruptions can have major implications. Below, we explore the top five ways tariffs are impacting data centre construction and highlight how, despite these impacts, Canada remains a prime location for data centre development.

Rising Construction Costs

New tariffs on essential materials like steel, aluminum and copper threaten to significantly drive up costs for building data centres. These materials are critical to the facilities' physical frameworks and electrical systems, which include cooling environments for high-density servers. Some analysts estimate that construction costs could rise by as much as 5 percent due to tariffs on raw materials.1

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