New research from Cushman & Wakefield reveals that the rapid expansion of AI infrastructure is generating significant economic activity far beyond the walls of traditional data centers. While public discourse often focuses on power consumption and land use, the actual economic footprint includes a massive ecosystem of supporting industries. This growing industrial demand is driven by the manufacturers, contractors, and service providers required to build, equip, and maintain these massive facilities, creating a substantial multiplier effect across major U.S. markets.
Data Center Ecosystem Drives Industrial Leasing
A new report, From Megawatts to Multipliers, analyzed over 388 million square feet of industrial leasing across six major U.S. markets from 2022 to 2025. The findings show that businesses tied to the data center ecosystem accounted for 10.4% of all new industrial leasing during this period. As AI investment accelerated, this share rose to a record 14.4% in 2025. Specifically, data center-related leasing increased by 44% year over year, reaching 13.5 million square feet.
This demand is fueled by companies manufacturing electrical equipment, cooling systems, and power infrastructure, alongside engineering firms, telecommunications providers, and logistics companies. The impact is most visible in Dallas, where ecosystem-supporting companies represented 22% of new industrial leasing in 2025, the highest share among the six markets studied. These markets—Atlanta, Austin/San Antonio, Chicago, Dallas, Phoenix, and Virginia—collectively hold 19.6 gigawatts of operational capacity, with an additional 11.8 gigawatts currently under construction.
Economic Multipliers and Job Creation
The data center boom is creating a significant employment ripple effect. Between 2022 and 2025, industrial leasing tied to the ecosystem supported an estimated 33,000 to 50,000 initial industrial jobs. Due to supply chain and household spending effects, each direct job generates an additional 2.5 jobs, totaling an estimated 81,000 to 124,000 total jobs. This activity contributes approximately $11.6 billion in annual gross economic output.
On a granular level, every 100 megawatts of new data center development is associated with roughly 365,000 square feet of industrial leasing. This development also correlates with 1,285 initial and downstream jobs, $110 million in annual wages, $344 million in gross economic output, and approximately $15 million in annual fiscal benefits. This demonstrates that the infrastructure expansion is not just a digital phenomenon but a physical industrial driver.
Key Takeaways
- Data center-related industrial leasing grew 44% year over year to 13.5 million square feet in 2025.
- The ecosystem supports an estimated 81,000 to 124,000 total jobs through a 2.5x job multiplier effect.
- In Dallas, companies supporting the data center ecosystem accounted for 22% of new industrial leasing in 2025.
TechInsyte's Take
In our view, the shift from "megawatts" to "multipliers" signals a fundamental change in how municipalities and industrial developers must approach AI infrastructure planning. The data suggests that the AI boom is no longer just a concentrated tech sector event; it is a broad-based industrial catalyst. For decision-makers, this means that the true economic value of a data center project lies in the secondary industrial footprint it creates. As capacity grows—with 11.8 gigawatts currently under construction—the demand for specialized manufacturing and logistics space will likely remain a primary driver for industrial real estate markets, particularly in high-growth hubs like Dallas and Northern Virginia.
Questions & Answers
How significant is the impact of AI infrastructure on industrial real estate leasing?
The impact is substantial and growing; data center-related leasing reached 13.5 million square feet in 2025, representing 14.4% of all new industrial leasing, a record high.
What specific industries are driving this industrial demand?
Demand is driven by an ecosystem of manufacturers of electrical equipment, cooling systems, and power infrastructure, as well as engineering firms, telecommunications providers, logistics companies, and specialized contractors.
What is the projected economic output of the data center ecosystem?
The ecosystem is estimated to generate approximately $11.6 billion in annual gross economic output, supported by a total of 81,000 to 124,000 jobs.
How does a 100-megawatt development impact local economies?
Every 100 megawatts of new development is associated with approximately 365,000 square feet of industrial leasing, 1,285 total jobs, and $344 million in annual gross economic output.
Source: cushmanwakefield
