CoStar: data centers lift leasing

CoStar Group said on August 26 that the U.S. data center buildout is spilling into industrial real estate as contractors, equipment suppliers and operators lease warehouse space near campus sites. The company said occupiers tied to data centers now account for more than 6% of leasing activity across logistics properties within five miles of data center facilities in 2026, up from less than 3% in 2020. The report ties that demand to the scale of current construction. CoStar said U.S. data center inventory has reached about 69 gigawatts of existing capacity, with another 43 gigawatts under construction. ### Why are warehouses filling up around data center campuses? CoStar said the added leasing is coming from businesses that support construction and operations rather than from the server buildings themselves. (costargroup.com) The company said growth has been broad-based across construction firms, power and cooling equipment suppliers, operators and IT infrastructure providers. Link Logistics, in a May analysis updated in August, described the same pattern in operational terms. The company said suppliers, contractors and equipment vendors involved in data center development need nearby industrial space to stage, store and service equipment. ### What does the 6% figure actually measure? (costargroup.com) CoStar said the figure covers leasing activity across logistics properties within a five-mile radius of data center facilities. The comparison shows that the share of nearby leasing tied to data center-adjacent occupiers has more than doubled since 2020. That metric matters because it captures spillover demand in conventional industrial buildings. (linklogistics.com) CoStar’s release described the effect as an increase in industrial demand driven by development activity around data center sites. ### Which tenants are taking that nearby space? Construction firms are one tenant group identified by CoStar. (costargroup.com) Power and cooling equipment suppliers are another, alongside operators and IT infrastructure providers that need local space during buildouts and ongoing operations. Link Logistics said those users often need facilities close enough to support rapid delivery, equipment handling and field service. (costargroup.com) That can pull demand toward warehouse buildings with yard space, loading capability and quick occupancy. ### Why does this matter for landlords and brokers near big campuses? (costargroup.com) CoStar’s data indicates that data center growth is creating a second layer of industrial demand around the campuses. In practice, that can tighten competition for nearby logistics buildings as multiple support businesses look for short-haul access to the same projects. (linklogistics.com) Link Logistics said the warehouse demand is being generated by users that need to stage and service equipment for active developments. That requirement can favor buildings that are operationally ready over sites that need longer lead times. ### How big is the underlying data center buildout? CoStar said existing U.S. data center capacity is roughly 69 gigawatts and another 43 gigawatts is under construction. (costargroup.com) Those figures help explain why adjacent warehouse demand is showing up in leasing data rather than only in land and power markets. CoStar published the report through its press room on August 26, and the company’s subscriber news coverage pointed to the same theme: data center growth is extending beyond server halls into surrounding industrial space. (linklogistics.com) (costargroup.com)