AI Data-Center Boom Boosts US Warehouse Demand and Rents, JLL Says

3-line summary

• Real estate firm JLL said AI data-center construction projects are creating new warehouse demand and contributing to rent growth, particularly around Dallas/Fort Worth and the Washington, DC area; average asking industrial rents rose to $10.55 per square foot in the third quarter, up 3.2% year-over-year-the fastest annual rate since the second quarter of 2024, on a triple-net lease basis where tenants pay taxes, insurance, and common-area maintenance separately from base rent.
• JLL said tenant composition and demand locations are shifting as construction, telecom, and utility-related tenants increase their footprint, noting that "data center expansion is driving outsized industrial demand in major freight hubs."
• The trend is tied to tens of billions of dollars in AI investment from Alphabet, Microsoft, Meta, and Amazon; AI's heavy power demands for running servers and chips, plus the cooling needed to prevent overheating, are driving data-center infrastructure needs into warehouse demand near logistics hubs.

This summary is our own processing of the source article; see the source link below for full context.