Data center-related companies accounted for a record 14.4% of industrial leasing across six major U.S. markets in 2025, up 44% from the prior year

As investment in AI infrastructure accelerates, the conversation around data centers has largely focused on power demand, land use and the number of permanent jobs created inside the facilities. New research from Cushman & Wakefield suggests that perspective captures only part of the economic picture.

Cushman & Wakefield recently released From Megawatts to Multipliers: The Data Center Effect on Industrial Demand, Jobs and Local Revenue, a new report examining how data center development is driving industrial real estate demand and generating broader economic activity across the United States through the companies that build, equip, maintain and supply these facilities.

Analyzing more than 388 million square feet of industrial leasing across six major U.S. data center markets between 2022 and 2025, the report found that businesses tied to the data center ecosystem accounted for 10.4% of all new industrial leasing activity during the period. As AI investment accelerated, that share climbed to a record 14.4% in 2025, with data center-related leasing increasing 44% year over year to 13.5 million square feet.

"Much of the conversation around data centers has focused on what happens inside the facility," said Cameron Martin, Global Research Manager at Cushman & Wakefield. "Our research shows there is also a significant economic story unfolding beyond the data center itself. As new facilities come online, they create demand for an ecosystem of manufacturers, contractors, suppliers and service providers that lease industrial space, hire workers and contribute to local economies."

The report identifies growing demand from companies that manufacture electrical equipment, cooling systems and power infrastructure, as well as engineering firms, telecommunications providers, logistics companies, wholesalers and specialized contractors that support data center construction and operations. While these businesses span multiple industries, together they are becoming an increasingly important source of industrial leasing demand in markets experiencing rapid data center growth.

The impact was especially pronounced in Dallas, where companies supporting the data center ecosystem accounted for 22% of new industrial leasing within the size range studied in 2025, the highest share among the six markets analyzed.

Measuring the Multiplier Effect

Across the six markets studied, industrial leasing tied to the data center ecosystem supported an estimated 33,000 to 50,000 initial industrial jobs between 2022 and 2025. The report estimates those jobs generated an additional 2.5 jobs through supply chain and household spending effects for every direct industrial job created, resulting in an estimated 81,000 to 124,000 total jobs and approximately $11.6 billion in annual gross economic output.

Based on the average impacts across the six markets, every 100 megawatts of new data center development is associated with approximately 365,000 square feet of industrial leasing, 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.

"AI is driving one of the largest infrastructure expansions we've seen in decades," John McWilliams, Head of Data Center Insights at Cushman & Wakefield said. "Understanding its economic impact means looking beyond the buildings themselves to the broader industrial ecosystem that enables them. Those multiplier effects are becoming increasingly meaningful for developers, occupiers and the communities where this investment is taking place."

The report analyzed industrial leasing activity across Atlanta, Austin/San Antonio, Chicago, Dallas, Phoenix and Virginia, combining Cushman & Wakefield leasing data with regional economic modeling to evaluate the broader economic effects associated with data center-related industrial demand. Together, these markets contain approximately 19.6 gigawatts of operational data center capacity, with another 11.8 gigawatts currently under construction.

About Cushman & Wakefield

Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for occupiers and investors with approximately 53,000 employees in over 350 offices and nearly 60 countries. In 2025, the firm reported revenue of $10.3 billion across its core service lines of Services, Leasing, Capital markets, and Valuation and other. Built around the belief that Better never settles, the firm receives numerous industry and business accolades for its award-winning culture. For additional information, visit www.cushmanwakefield.com.

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Data center-related companies accounted for a record 14.4% of industrial leasing across six major U.S. markets in 2025, up 44% from the prior year