The rapid acceleration of data center development is fundamentally reshaping the landscape of U.S. industrial real estate demand. According to a new report from CoStar, the expansion of digital infrastructure is no longer confined to server halls but is actively pulling the broader logistics sector into its orbit. As hyperscale cloud providers and AI-driven users push capacity limits, the resulting demand is spilling over into adjacent industrial sectors. This shift is creating a specialized ecosystem of occupiers, ranging from power equipment suppliers to construction firms, all seeking proximity to critical digital hubs.
Data Center Capacity and Hyperscale Dominance
The scale of current digital infrastructure investment is evidenced by a national data center inventory that has reached approximately 69 gigawatts of existing capacity. This footprint is set to expand significantly, with an additional 43 gigawatts currently under construction. A critical driver of this growth is the dominance of hyperscale facilities, which now account for 64% of all existing capacity. This concentration suggests that major technology companies are prioritizing massive, centralized infrastructure footprints to support their evolving computational needs. Consequently, vacancy rates in these specialized segments remain near historic lows, as the appetite from hyperscale and AI-related users continues to outpace the delivery of new supply. This imbalance is forcing a reconfiguration of how industrial space is utilized near major technological nodes.
Industrial Leasing Shifts Near Digital Hubs
The ripple effect of data center growth is most visible in the leasing patterns of logistics properties located within five miles of these facilities. CoStar reports that data center-adjacent occupiers accounted for more than 6% of leasing activity across these logistics properties in 2026, a significant increase from less than 3% recorded in 2020. This growth is broad-based, encompassing construction firms, IT infrastructure providers, and suppliers of power and cooling equipment. Geographically, Dallas-Fort Worth has emerged as the primary leader, with approximately 10 million square feet of occupied logistics space leased by these adjacent industries since 2025. Other major markets following Dallas include Houston, Atlanta, and Phoenix. These regions are increasingly defined by their access to electrical generation, substations, and transmission infrastructure, which are becoming the primary determinants for large-scale development.
Key Takeaways
- National data center inventory has reached roughly 69 gigawatts, with 43 gigawatts currently under construction.
- Hyperscale facilities now represent 64% of all existing data center capacity.
- Leasing activity by data center-adjacent occupiers within five miles of facilities rose to over 6% in 2026, up from under 3% in 2020.
TechInsyte's Take
In our view, the CoStar data signals a permanent structural shift in industrial real estate, where "proximity to power" is replacing "proximity to consumers" as a primary driver of logistics demand. The fact that data center-adjacent leasing has doubled in a six-year window suggests that the digital supply chain is becoming as critical as the physical goods supply chain. For enterprise IT leaders and infrastructure investors, this highlights a growing dependency on a specialized industrial ecosystem. As hyperscale providers continue to dominate capacity, the competition for land and power near established hubs like Dallas-Fort Worth will likely intensify, making electrical infrastructure the ultimate bottleneck for future digital expansion.
Questions & Answers
How is the scale of hyperscale influence impacting the market?
Hyperscale facilities now account for 64% of existing capacity, indicating that major technology companies are driving the vast majority of infrastructure expansion and influencing the scale of new developments.
Which geographic regions are seeing the most industrial activity related to data centers?
Dallas-Fort Worth leads the nation with approximately 10 million square feet of logistics space leased by adjacent industries since 2025, followed by Houston, Atlanta, and Phoenix.
What specific industries are driving the increase in industrial leasing near data centers?
Demand is coming from a broad range of sectors, including construction firms, power and cooling equipment suppliers, operators, and IT infrastructure providers.
Why is electrical infrastructure becoming a primary driver for site selection?
Operators are increasingly prioritizing locations with access to new electrical generation, substations, and transmission infrastructure to ensure they can bring new capacity online effectively.
Source: Businesswire
