A new Cushman & Wakefield analysis finds that the rapid build-out of data centers for artificial intelligence and cloud computing is reshaping surrounding industrial markets well beyond the walls of the server halls themselves.
The report, “From Megawatts to Multipliers: The Data Center Effect on Industrial Demand, Jobs and Local Revenue,” concludes that data center development is catalyzing employment, regional economic growth and incremental industrial space demand.
According to the study, the economic impact of data center investment is not limited to construction and on-site operations. Instead, a growing ecosystem of suppliers, contractors and service providers tied to these facilities is emerging as a distinct source of industrial leasing demand.
Cushman & Wakefield analyzed six key data center markets—Atlanta, Austin/San Antonio, Chicago, Dallas-Fort Worth, Phoenix and Virginia—to quantify this effect. Across these markets, the report notes more than 11 gigawatts of data center capacity under construction and an industrial base exceeding 4.1 billion square feet.
Within that footprint, companies that support data center development and ongoing operations have become a meaningful driver of new industrial leases, separate from hyperscale operators. Between 2022 and 2025, these support businesses accounted for 10.4% of all new industrial leasing in the profiled markets, climbing to a record 14.4% of leasing activity in 2025.
Data center-related tenant leasing also grew 44% year over year in 2025, outpacing the broader industrial sector. The tenant mix captured in the analysis includes electrical contractors, HVAC manufacturers, fiber-optic suppliers, power equipment firms, engineering companies, telecom providers, wholesalers and construction-related businesses.
Market-specific trends highlight the breadth of this demand. In Virginia, data center-related companies represented 13.4% of new industrial leasing from 2022 through 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 overall industrial inventory.
These leasing dynamics translate into sizable employment gains. Based on data center-driven industrial activity, Cushman & Wakefield estimates that 33,000 to 50,000 initial jobs were generated across the six markets between 2022 and 2025.
The report further estimates that each job created within data center-supported industries drives about 2.5 additional local jobs through consumer spending and supplier linkages, bringing the total employment impact to between 81,000 and 124,000 jobs over the period.
On the economic output side, cumulative gross output across the six markets is estimated between $31.1 billion and $46.4 billion from 2022 to 2025. Over the same window, the report cites $25.2 billion in gross regional product and more than $2 billion in fiscal benefits.
On an annualized basis, data center-associated industrial activity is estimated to generate roughly $11.6 billion in gross output and $500 million in tax revenue. The authors emphasize that data centers now function as anchors for broader industrial ecosystems, stimulating downstream activity, supporting supply chains and reinforcing demand for warehouse space over the long term.
