AI data center boom lifts U.S. warehouse rents and demand, JLL reports
Construction of AI data centers near Dallas/Fort Worth and Washington, DC is driving new demand for warehouse space and pushing average asking rents up to $10.55 per square foot.
JLL’s third-quarter industrial market report highlights that AI data center construction, particularly in the Dallas/Fort Worth and Washington, DC regions, is spurring fresh demand for warehouse properties. Tech giants including Alphabet, Microsoft, Meta and Amazon are pouring billions into AI infrastructure that consumes large amounts of electricity and requires extensive cooling. This activity has lifted average asking rents for warehouse space to $10.55 per square foot, a 3.2% increase from the previous year and the quickest annual rise since the second quarter of 2024.
The growth is measured on triple-net lease terms, meaning tenants pay property taxes, insurance and common-area upkeep in addition to base rent. JLL notes that the expanding mix of tenants now includes more construction, telecommunications and utilities companies that support the power-intensive data center ecosystem.
Why it matters
Rising warehouse demand and rents signal how AI infrastructure is reshaping U.S. industrial real estate and regional economies.
How this story developed
- Oct 2 US Governors Split on AI Safety Rules and Data Center Expansion Ahead of Midterms
- Oct 8 A Ratepayer Protection Act was introduced to require developers to cover power and water costs.
- Oct 14 Governors have publicly outlined differing AI safety and data‑center strategies ahead of the November 3 midterms.
- Oct 16 Senate Democrats blocked the Ratepayer Protection Act.
- Oct 18 Microsoft has ended its planned partnership with British neocloud Nscale for a data centre in Loughton, Essex, citing ongoing power supply issues.
- Oct 19 Microsoft announced it will not honor the agreement as anchor tenant.
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