A new Cushman & Wakefield analysis underscores how data center growth tied to artificial intelligence and cloud computing is reshaping industrial real estate and local economies across key U.S. markets. While data centers are commonly viewed as critical infrastructure for digital workloads, the authors conclude that their impact extends far beyond supporting servers and applications.
In the report From Megawatts to Multipliers: The Data Center Effect on Industrial Demand, Jobs and Local Revenue, Cushman & Wakefield examines the relationship between data center development and broader industrial demand, employment and fiscal contributions. The study focuses on Atlanta, Austin/San Antonio, Chicago, Dallas-Fort Worth, Phoenix and Virginia, which together have more than 11 gigawatts of data center capacity under construction and in excess of 4.1 billion square feet of industrial product.
One of the clearest signals in the findings is that companies supporting data center construction and operations have emerged as a meaningful driver of industrial leasing, distinct from hyperscale operators themselves. Between 2022 and 2025, these support businesses accounted for 10.4% of all new industrial leases in the six markets, and their share rose to a record 14.4% of leasing activity in 2025. Data center-related tenant leasing also increased 44% year over year in 2025, outpacing overall industrial leasing trends.
The tenant mix captured in the report spans suppliers and vendors such as electrical contractors, HVAC manufacturers, fiber-optic suppliers, power equipment firms, engineering companies, telecom providers, wholesalers and construction-related businesses. Regionally, data center-related companies in Virginia represented 13.4% of new industrial leasing between 2022 and 2025. Dallas-Fort Worth recorded the largest year-over-year increase in data center-related industrial leasing in 2025, while Phoenix posted one of the highest concentrations of industrial demand tied to data centers relative to its total inventory.
The economic implications are notable. Cushman & Wakefield estimates that data center-driven industrial leasing generated between 33,000 and 50,000 initial jobs across the six markets from 2022 through 2025. Applying a multiplier effect, the report finds that each job in data center-supported industries created roughly 2.5 additional local jobs through consumer spending and supplier activity, resulting in approximately 81,000 to 124,000 total jobs.
From 2022 to 2025, the six markets collectively saw cumulative gross output of between $31.1 billion and $46.4 billion linked to this activity. Over the same period, the report cites $25.2 billion in gross regional product and more than $2 billion in fiscal benefits. On an annual basis, data center-associated industrial activity generated about $11.6 billion in gross output and $500 million in tax revenue.
The authors emphasize that data centers should be viewed as catalysts for broader industrial ecosystems rather than isolated, energy-intensive buildings. By stimulating downstream economic activity, attracting adjacent industrial uses and supporting supply chain operations, data centers can become durable drivers of warehouse demand and long-term regional economic growth.
