Growth in data center development is fueling an increasing share of U.S. industrial demand, CoStar Group reported. Data center-adjacent occupiers now account for more than 6% of leasing activity across logistics properties within five miles of data center facilities, up from less than 3% in 2020.
Nationally, data center inventory has reached roughly 69 gigawatts of existing capacity, with another 43 GW under construction. This has led to broad-based growth across several categories related to development and operation of the centers, including construction firms, power and cooling equipment suppliers, operators and IT infrastructure providers.
“Operators are increasingly prioritizing locations with access to new electrical generation, substations and transmission infrastructure as they seek to bring capacity online,” said Juan Arias, national director of industrial analytics at CoStar. “As a result, demand is extending beyond data center buildings themselves and into the broader supply chain required to construct and operate them.”